The Impact of Consumer Protection in the Digital Age: Evidence from the European Union

60 Pages Posted: 10 Feb 2020

See all articles by Anja Rösner

Anja Rösner

University of Duesseldorf

Justus Haucap

Heinrich Heine University Dusseldorf - Department of Economics; German Institute for Economic Research (DIW Berlin)

Ulrich Heimeshoff

University of Duesseldorf

Date Written: 2020

Abstract

We investigate the effect of an EU-wide consumer protection regulation on consumer trust as well as consumer behavior. The Unfair Commercial Practice Directive (UCPD) was implemented by EU member states between 2007 and 2010. We utilize data from the Special and Flash Eurobarometer for the years between 2006 and 2014 and experts' evaluation on consumer protection levels before the introduction of the regulation. This rich data set allows us to apply a difference-in-difference estimator with multiple time periods. We find a significant relationship between the introduction of the UCPD and consumer trust and cross-border purchases for countries with a low consumer protection level before the introduction of the UCPD. The relationship increases over time and stays then relatively constant.

Keywords: consumer protection, UCPD, B2C, e-commerce, consumer trust, cross-border purchase

JEL Classification: D180, K200, L500, L510

Suggested Citation

Rösner, Anja and Haucap, Justus and Heimeshoff, Ulrich, The Impact of Consumer Protection in the Digital Age: Evidence from the European Union (2020). CESifo Working Paper No. 8081. Available at SSRN: https://ssrn.com/abstract=3535291

Anja Rösner (Contact Author)

University of Duesseldorf ( email )

Universitätsstraße 1
Dusseldorf, 40225
Germany

Justus Haucap

Heinrich Heine University Dusseldorf - Department of Economics ( email )

Duesseldorf
Germany

HOME PAGE: http://www.dice.uni-duesseldorf.de

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Ulrich Heimeshoff

University of Duesseldorf ( email )

Universitätsstraße 1
Dusseldorf, 40225
Germany

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