What Will be the Response to Consumer Digitalization?

 ■What Will be the Response to Consumer Digitalization?

I served as the acting chairperson for the “Study Group on the Response to Consumer Digitalization.”

The report has been compiled.

It consists of the following:

1. Changes in consumer life from digitalization

2. The measures to deal with consumer digitization

　1) Consumer education

　2) Raising public awareness

3. Specific ways to deal with digital services

　1) Digital platforms

　2) Social media

　3) Online games

　4) Cashless payments

4. Dealing with AI and other new digital technologies

Consumer measures are often seen as consumer protection = business regulation. However, the concept of this report is to implement measures through public-private partnerships, with an emphasis on consumer responsibility and education, while considering independent consumers.

This is the approach that I prefer.

First, we list the items of services surrounding consumers and issues/troubles: 1) digital platforms, 2) social media, 3) online games, 4) cashless payment, and 5) AI.

We recognize that the digital shift is accelerating with the coronavirus, such as telework, online classes, online shopping, and home delivery of food becoming more popular. Furthermore, the transformation of society toward the use of goods rather than their ownership is irreversible.

The report accurately describes the vulnerability of consumers within the framework and how to deal with consumers in this context.

Consumer education will be a key measure.

The report states that “we will encourage people to act with awareness of their rights and responsibilities,” that information education should be promoted through the efforts of the private sector, such as the Japan Association for Safety and Security, and in cooperation with the Ministry of Education, Culture, Sports, Science and Technology and the Ministry of Internal Affairs and Communications, and that we should focus on information literacy education through the legalization of digital textbooks and making computer programming education compulsory.

I thought that the measures for senior citizens and the elderly were more important than those for the youth, which are already advanced.

In this regard, it was stated that efforts to improve the ICT skills of the elderly are necessary, but concrete measures are yet to be taken.

Another key measure is to spread awareness.

In addition to the traditional methods of distributing flyers and booklets and making announcements at press clubs, emphasis is being placed on the use of websites and social media.

The Consumer Affairs Agency has been making better use of influencers and comedians than other ministries and agencies in promoting information, and this stance is positively evaluated.

Regarding individual services, the first is the digital platforms.

Guidebooks should be made related to auctions, flea markets, etc., so that consumers can check the precautions themselves.

Sharing economy will be co-regulated in a soft law fashion, with the private sector running certification systems based on government guidelines.

This is a consumer measure approach that is not regulating businesses.

About Social Media

The list includes issues that consumers should be aware of and the necessary information literacy. Protect yourself.

However, concerning the issue of advertisements, it is requested that social media businesses and other related parties work together to eliminate and prevent malicious advertisements. The Consumer Affairs Agency will also provide data.

About Online Games

The report calls for voluntary efforts by the gaming industry, such as making guidelines. At the same time, it is expected that parents take action to understand the actual situation of their children and make use of parental control functions, etc. Therefore, this is also not a business regulation but an education and promotion approach.

For games, it is noteworthy that the report points out the “usefulness” of games, such as increased communication, uses in exercise, learning, medicine, and advantages in programming education.

With regard to e-sports, the report states that “the private sector will also promote the verification of educational effects.” This is a measure that the Learning of Tomorrow and the Japan e-Sports Union, JeSU, plan to work on.

About Cashless Payments

Knowledge should be acquired. We should recognize that consumers who do not manage their own information adequately are being intensively targeted. Do not use payment methods that you do not understand, even if they seem convenient. The government should provide easy-to-understand information through guidebooks. That was the stance of the report.

Finally, there is a section on dealing with new technologies such as AI. New technologies need to be evaluated in terms of both convenience and risk, and that consumers should understand at least the minimum requirements and use them wisely at their own risk. That was the stance of the report.

However, AI and IoT are yet to accumulate data to reveal real images. Therefore, it is still too early to leave it to consumers’ self-responsibility.

Scoring and profiling, where data is used to determine the credit/value of an individual, will be used by companies to hire personnel, judge financial credit, and predict crime, which would be used to exclude and discriminate. It is an issue that can affect respect for the individual and equality. Such data could be used in a black box. Therefore, it should be watched and emphasized for future consumer policies. That was the comment I made, and it was adopted.