Consumer rights and data privacy in Bangladesh's e-commerce sector
The twin foundations of consumer rights and data privacy are critical to the long-term viability and validity of e-commerce
Bangladesh has enjoyed much economic success due to its burgeoning e-commerce sector, in an era where digital reliance is not just usual, but expected. The sector has blossomed because of ubiquitous internet access, the dynamic energy of a young population and the guiding hand of government programs.
The e-Commerce Association of Bangladesh (e-CAB) had projected an outstanding 70% increase in 2021, with the potential of the sector to reach $3 billion by 2023. This astonishing increase highlights the sector's propensity to be a critical economic booster and the prospect of digital transactions accounting for a considerable portion of national GDP.
The pace of e-commerce has automatically pushed data to a pedestal where it is cherished as the currency of the digital economy. The twin foundations of consumer rights and data privacy are critical for the long-term viability and validity of e-commerce. As the landscape of data sharing evolves, it unavoidably sheds light on the risks consumers confront in the virtual marketplace, emphasising the need for safeguards.
The assurance of data privacy protection is the foundation of consumer trust in e-commerce, and Bangladesh needs to develop and implement robust data privacy regulations. This is not a frivolous endeavour but rather a strategic requirement with the potential to shape the contours of e-commerce growth.
There is a case for policies that are not only strict and transparent, but also rigorously enforced, because these policies will serve as the foundation of a framework in which consumer rights are enshrined as a primary concern in e-commerce strategies, thereby safeguarding consumer sovereignty.
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Data protection and privacy principles are governed by laws, rules and procedures that govern how personally identifiable information is acquired, processed and disseminated. Individuals' fundamental right to exert control over the use of their data is unassailable.
When consumers conduct online transactions, they place their faith in the idea that their personal information is protected, with the awareness that the integrity and reputation of e-commerce platforms rely on this trust.
Consumer data is beneficial in the virtual commerce area. It influences decisions, from company strategies to marketing initiatives to customer experience customisation. E-commerce businesses collect a wide range of information, including names, addresses, payment information and transaction histories. This information is helpful for customising marketing, fine-tuning product recommendations and improving overall service delivery.
However, the utility of this data is accompanied by an implicit agreement to protect it against security breaches, which, if compromised, could result in severe consequences such as identity theft, financial loss and a violation of consumer confidence. International data protection standards come into play here, providing a framework for domestic legislation and best practices.
With its emphasis on data parsimony, purpose limitation and consent, the European Union's General Data Protection Regulation (GDPR) has set a precedent, raising the bar for data privacy standards globally. It allows people to access, edit and delete their personal information.
Similarly, the California Consumer Privacy Act (CCPA) offers customers control over personal information, replicating the GDPR's advances. These standards reflect the rising worldwide consensus that data privacy is an intrinsic right that must be woven into the operational fabric of e-commerce.
Global consumer rights, including digital sovereignty and integrity, have now been extended into the digital sphere. Customers with such rights can manage, retrieve and correct personal data. They have the right to be informed about how their data is acquired and to object to data processing that deviates from the core service offering. Data security rights require enterprises to take reasonable steps to protect personal data against unauthorised access, exploitation and dissemination.
While the CCPA and GDPR are cutting-edge pieces of data protection law, their approaches to consumer rights are somewhat different. The GDPR is founded on user permission, data subject rights and strict regulation of data migration outside of the EU, with far-reaching repercussions. It sets severe penalties for violations of data processing standards, such as lawfulness, fairness and transparency, encouraging enterprises to prioritise data protection.
The CCPA, on the other hand, while not as comprehensive as the GDPR, gives California residents the right to know, delete and opt out of the sale of their data, making the US a pioneer in complying with European norms.
Bangladesh, amid its digital transformation, should benefit from the insights gained from implementing and overseeing these international standards. The GDPR and CCPA provide a vantage point from which Bangladesh can envision a statutory architecture that protects consumer data and fosters trust, fueling the substantial expansion of the e-commerce industry.
The juxtaposition of the GDPR and CCPA paradigms indicates a range of options for Bangladesh. Data privacy regulations must be meticulously crafted to resonate with Bangladesh's cultural, social, and economic tapestry, ensuring that, although robust and responsive, they do not hinder the inventive spirit that is moving the e-commerce industry ahead.
Bangladesh's e-commerce market is primed for exponential expansion and subjected to consumer trust. That trust is hinged on data privacy, necessitating a legislative framework that not only adheres to worldwide precedents but also embodies the distinct nature of the country's digital landscape. A robust data protection policy can be a critical step toward protecting and empowering consumers, thereby stimulating a trust-based and resilient digital economy.
Dr Mohammad Shahidul Islam is an Assistant Professor of Marketing at BRAC Business School, BRAC University. Tanzin Khan is a Senior Lecturer at BRAC Business School, BRAC University.
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the opinions and views of The Business Standard.
