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APEC Project Database

Project Title

Research on potential applications of artificial intelligence to improve product recall procedures in the region

Project Year

2023

Project Number

DESG_202_2023A

Project Session

Session 2

Project Type

Standard

Project Status

Project in Implementation

Project No.

DESG_202_2023A

Project Title

*
Research on potential applications of artificial intelligence to improve product recall procedures in the region

Project Status

Project in Implementation

Fund Account

*
APEC Support Fund

Sub-fund

ASF: Digital Innovation

Project Year

2023

Project Session

*
Session 2

APEC Funding

120,000

Co-funding Amount

0

Total Project Value

120,000

Sponsoring Forum

*
Digital Economy Steering Group (DESG)

Topics

Digital Economy; Human Resources Development

Committee

Committee on Trade and Investment (CTI)

Other Fora Involved

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Peru

Co-Sponsoring Economies

Australia; Chile; Malaysia; Mexico; Philippines; Chinese Taipei

Expected Start Date

01/04/2024

Expected Completion Date

30/06/2025

Project Proponent Name 1

Yvette Sanguineti

Job Title 1

Executive 1 - Leval Coordinator

Organization 1

National Institute for the Defense of Competition and the Protection of Intellectual Property (Indecopi)

Telephone 1

+51 991861170

Email 1

Project Proponent Name 2

Rosa Moran

Job Title 2

Legal Specialist on Product Safety and Peruvian Recall System

Organization 2

Office of the National Authority of Consumer Protection, INDECOPI

Telephone 2

+51921882578

Email 2

Declaration

Yvette Sanguineti

Project Summary

Nowadays, the ongoing risk for consumers in contact with unsafe products is not an isolated issue. As many APEC economies are experiencing, the development of e- commerce has meant the need to adapt product recall procedures to address the risks that this reality may pose to consumers. 

This project aims to evaluate the status quo of product recall procedures in the Asia- Pacific region, identify opportunities to improve the current product recall procedures and propose technological solutions that allow their upgrade, prioritizing artificial intelligence (AI) alternatives. Three outputs will be developed: 1) a research report, 2) a workshop to inform and debate its findings, and 3) a final report of the relevant aspects, conclusions of research work and voluntary recommendations discussed during the workshop.

Relevance

Region
It is well-known that the combination of convenience, increased internet usage, greater trust and security on on-line financial system, competitive pricing, and the impact of the COVID-19 pandemic have all contributed to the increase of e-commerce transactions.

However, it is important to note that there have been concerns of consumer protection agencies about the quality and safety of an increasing number of products transacted through e-commerce platforms. More specifically, there are concerns about whether the current recall procedures are in line with current e-commerce reality and according to the evolution of the applied information technology.

For example, in Peru, in 2022, out of the total number of consumer alerts published by the National Institute for the Defense of Competition and the Protection of Intellectual Property (INDECOPI), approximately 11% corresponded to products offered online.

However, there is no information about safety issues related to products offered by foreign/international e-commerce platforms. Therefore, this capacity building project proposes to develop a study about the status quo of the current product recall procedures in the Asia-Pacific region to evaluate, assess and learn through a report, the current situation, challenges, and improvement opportunities using artificial intelligence.

Eligibility and Fund Priorities
This project is aligned with the three points of the eligibility criteria of the Digital Innovation Sub-Fund, related to promoting the innovation and adoption of enabling technologies and services, the facilitation of the free flow of information and data for the development of the Internet and Digital Economy, while respecting applicable domestic laws and regulations, enhancing trust and security in the use of ICTs.

Capacity Building

This project aims to build capacities for officials of APEC economies’ consumer protection agencies.

Specifically, this project will enable member economies, to obtain, share and develop knowledge, skills, and technical know-how on artificial intelligence, to improve their policies and institutional procedures to address product safety issues and e-commerce product recalls.

Furthermore, the project will help members to participate more fully in the regional economy and trade in similar safety conditions and at the same time being aware of the technology applied to the procedures of other economies.

It is important to notice that the research will be guided by the principle of a long-term capacity building goal, which is to achieve an international product safety system able to communicate and guarantee safety of consumers.

Objectives

The project objective is to evaluate the status quo of product recall procedures in the Asia-Pacific region and identify opportunities to improve these procedures with the support of artificial intelligence tools to address the challenges that e-commerce may pose.

Alignment

APEC

The project aligns with one of the United States 2023 priorities related with “being inclusive” by promoting innovation to provide economic opportunities through facilitating and utilizing AI in Trademark examination. Also, it supports the Putrajaya Vision 2040, because this project can contribute to the development of the APEC Digital and Internet Economy Roadmap by reporting on existing principles, best practices and solutions regarding AI to encourage the creation of new opportunities for APEC economies.

Besides, the project is related to APEC Connectivity Blueprint for 2015-2025, since it aims to contribute to institutional connectivity, because, in a particular way it will make an impact by “accelerating and encouraging balanced, secure, sustainable, and inclusive growth, as well as connecting growth poles in the region and bringing APEC closer together as a community”.

The project is also aligned with the Policy Brief No 52 “Artificial Intelligence in Economic Policymaking” , published by the PSU, because this project, as said in the document, will “leverage regional cooperation” and “the diversity provides the basis for economies to come together to share experiences and best practices on AI use”. AI systems are key factors in relation to the development of better and efficient digital infrastructure.

In addition, this is an innovative project that promotes all member economies inclusivity and has the potential to be globally replicated.

Forum

In November 2020, DESG members adopted the Work Program for the Implementation of the APEC Internet and Digital Economy Roadmap (AIDER). The work program translates the 11 key focus |areas. The project is aligned with AIDER, especially with the key areas: “Promoting innovation and adoption of enabling technologies and services” and “Holistic government policy frameworks for the internet and digital economy”.

The project is also aligned with the DESG Work Plan, especially because it contributes towards APEC’s implementation of the second Economic Driver of Putrajaya Vision 2040: Innovation and Digitalization. Also it is in line with the DESG Workplan, because it encourages “DESG members to propose policy initiatives and projects”.

It is important to address that being able to integrate technology in government agencies operations to promote an E-government, is one of the topics the Committee on Trade and Investment (CTI), and the Digital Economy Steering Group (DESG) have taken an interest to promote economic recovery from the Covid-19 pandemic.

Beneficiaries and Outputs

Outputs

1) Research Report

Report on the possible applications of artificial intelligence (AI) to improve product recall procedures in the region. The report will also include a review of the status of product recall regimes in the APEC region as well as member economies' access to technological tools specifically to AI.

To make it possible, the research work must involve collecting, organizing, processing, and analyzing quantitative data and qualitative information from APEC Consumer Protection agencies or Product Safety Offices about recall systems. This will allow us to obtain the necessary inputs to understand and describe the region's overall current situation in this specific field such as available and non-available statistics on recall systems; procedures and measures being implemented to foster recall of unsafe products, challenges, and opportunities for recall systems using AI.

Activities to achieve the output will include information collection:

(i) Review secondary information available through the Internet: analysis,

(ii) Prepare survey for APEC Consumer Protection Agencies or Product Safety Offices; (iii) In-depth interviews with consumer rights-related offices and e- commerce enterprises, and (iv) Interviews with regional consumer associations (v) Process and analyze all information collected.

The length of the research report should be a minimum of 20 pages, excluding annexes, references, and other materials.

2) Workshop

The workshop will allow to share the findings and results contained in the Research Report of the project to all interested parties of APEC and other national and international organizations related to the recall procedures and system using AI. Specifically, it is aimed at officials working on issues related to product safety and recalls.

The purpose is twofold. On the one hand, it seeks to obtain feedback from the participants for refining the communication and presentation of the results and information covered by the study. On the other hand, it will make it possible to publicize the scope and findings of the project on a larger scale and to promote the dialogue to increase the interest from various organizations for the future use of the Report as a reference tool for public policies, new projects, advocacy activities, and others. 

Activities to achieve the output will include: Organize the Workshop (overall coordination, logistics, possible attendees mailing, the invitation to panelists, traveling arrangements, agenda, and session methodology, assisting with virtual meetings, post-event evaluation, and others). Conduct the Workshop according to plan. 

The workshop will be held in March 2025 with a duration of 2 full days, during SOM1. The event will be audio and video-recorded only for notetaking by the PO and the contractor.

The agenda might include, preliminarily, the following topics:

1. Understanding Recall Systems in the Asia Pacific Economies. Overview of current recall systems in Asia Pacific countries and discussion on challenges and limitations faced by existing systems.

2. Presentation of the Research Report results. Presentation in charge of the contractor.

3. Exploring Viability: Panel Discussion. Panel discussion with experts from academia, industry, and government on the feasibility and potential benefits of implementing AI in recall systems. Addressing concerns, risks, and ethical considerations. Case studies showcasing successful implementation of AI in recall processes.

4. Technical Considerations and Challenges: Presentation on technical aspects, including data requirements, algorithms, and infrastructure needed for AI-powered recall systems. Discussion on potential technical challenges and how to address them. Discussion on how to promote female participation in the field.

5. Policy and Regulatory Frameworks: Overview of existing regulatory frameworks related to recall systems in Asia Pacific countries. Discussion on adapting regulations to accommodate AI technologies while ensuring safety and compliance.

6. Building Partnerships and Collaboration: Presentation on the importance of collaboration between stakeholders including government agencies, industry players, and AI developers. Opportunities for partnerships and collaborative initiatives. Sharing of best practices on the topic.

7. Interactive session to identify key action points and next steps for implementing AI in recall systems. Formation of working groups for continued collaboration about what they gained most from the event and how they can/plan to apply new information, resources, or learning in their roles.

8. Closing Remarks and Conclusion: Summary of key insights and takeaways from the workshop.

3) Final Report

This document will present the results of the research work and provide policy recommendations and actions aimed at promoting greater use of AI in recall systems. 

In this regard, the report will include the results of all the previously collected information, the review of the status of product recall regimes in the APEC region, as well as member economies’ access to technological tools, specifically to AI; also, it must include the possible applications of AI to improve product recall procedures in the region and the policy recommendations and actions aim at promoting a greater use of AI in recall systems, considering the Workshop results. The document must include at the end, a summary of the main findings and conclusions of the Final Report, considering approx. 2 to 3 pages. 

The length of the Final Report will be a minimum of 20 pages, excluding annexes, bibliographical references, or others. 

The Final Report will be an APEC publication and it is expected to be uploaded on the APEC website by February-March 2025, after being endorsed at DESG (SOM1), to be used as a key tool, especially for policy purposes, by the relevant actors of the different APEC economies, as well as by APEC working groups related to the topics of the study.

Outcomes
1) An evaluation of the current product recall procedures in each participating economy, at least 11, making observations on their operation, effectiveness, and efficiency, especially as it relates to electronic commerce. In addition, this project must provide alternatives on what needs to be done to launch initiatives that solve or improve them, based mainly on the use of new technologies, as well as artificial intelligence tools. Results will be obtained through a post-event evaluation.

2) Increased knowledge, skills, and technical know-how of the participants on artificial intelligence to improve their policies and institutional procedures to address product safety issues and e-commerce recalls. At least, 25% of participants confirm their increase of any of these items through a post-event evaluation.

3) Deeper understanding by participants of the similarities and differences of the safety conditions and technology applied in the regional economy and trade. At least 20% of participants improve their understanding of this, results will be obtained through a post-event evaluation.

4) Improved ability to decide whether to apply the alternatives presented, set deadlines for their implementation and begin to develop their solutions (or improved capabilities in the management of product safety procedures in the economies of the regions). At least 20% of participants improve on these aspects, results will be obtained through a post-event evaluation.

Beneficiaries

The direct project beneficiaries will be government officials from consumer protection agencies because it aims to improve their capabilities and increase the tools available to them to better address the risk situations faced by the consumers they seek to protect. The indirect project beneficiaries will be private sector representatives and stakeholders from APEC economies, APEC observers and final consumers given that the project seeks to foster their confidence on e-commerce and APEC’s economies responsibility with their personal safety. It will also benefit professionals linked to technology development and academia, since the information provided by them will directly benefit society and the activities carried out by member economies.

In this way, based on the findings identified through the proposed research and the exchange of views in the workshop, it will be possible to offer additional possibilities to improve product recall processes and as a result, improve the social well-being of the people. Also, it could be important to attain an equitable development in the Asia – Pacific region because it intends to provide practical and technological upgrades applicable to every economy.

Furthermore, the PO will promote the attendance of women as researchers, officials, analysts, or speakers during the stages of the project.

Dissemination

The Final Report will be sent to the APEC Secretariat, once completed, for publishing purposes at the APEC website.

The document will also be sent by the PD through e-mail directly to DESG members, encouraging them to distribute it among their Consumer Protection Agencies, as well as to institutions related to consumer product safety officers, and other relevant stakeholders in their economies.

The APEC Secretariat will be requested to send the Final Report to the different APEC working groups related to this field.

Additionally, the document will be shared by the PO/Indecopi with representatives from international organizations (UNCTAD, OECD, ICPEN) and consumer associations, and any other party (stakeholders) interested in receiving the report.

Finally, an open Workshop will be conducted between February and March 2025 to present the results of the Final Report to all interested parties from APEC and other organizations.

The Final Report will consider the following sections: i) Introduction; ii) Literature Review; iii) APEC landscape/overview/perspective; iv) Analysis of all information collected vi) Policy recommendations.

Gender

Please see Project Proposal in Supporting Documents folder.

Work Plan

Please see Project Proposal in Supporting Documents folder.

Risks

Please see Project Proposal in Supporting Documents folder.

Monitoring and Evaluation

Please see Project Proposal in Supporting Documents folder.

Linkages

Peru, among other economy members, is member of working groups on product safety of the United Nations Conference on Trade and Development (UNCTAD), the Organization for Economic Cooperation and Development (OECD) and the Organization of American States (OAS) - Consumer Safety and Health Network. In this sense, we know first-hand the interest of the economies in exploring the alternatives available to improve the current procedures for detecting and withdrawing risky products from the market. Also, cross-border product safety concerns are currently being discussed in fora and work plans of various working groups.

For this reason, having product recall procedures supported by technologies (like AI) that allow managing product safety problems and e-commerce product recalls that threaten safety or health of consumers will be useful for consumer agencies in the APEC Region and their consumers.

On the other hand, the APEC Product Safety Incident Information Exchange system, and the Rapid Alert System of Europe (RAPEX)-China, which enables the transmission of data on dangerous products between the European Commission and Chinese authorities, are also important mechanisms, as reference. Thus, it is necessary to highlight the usefulness that a project of this nature will have both for economies that have a product safety procedure, regardless of whether they exercise it individually or even jointly (as it is the case of economies that are part of ASEAN).

Sustainability

This project has been designed and planned to be the first step in a chain of projects to protect consumer safety.

In order with that, depending on the results of the research, various future possibilities for the continuation of the project effects can be expected.

The idea is, first of all, each member economy assesses opportunities for improvement of its system and plans to make progress in the short to medium term.

Secondly, depending on whether the needs of the economies are similar or common, a second or complementary project could be proposed with the aim of developing a tool that would allow them to improve their security systems.

In addition, the resulting documentation can serve as a source of information for future projects that other economies and academia may propose, not only internally but also for the benefit of all APEC member economies.

Likewise, at any stage of the project, and even after its results, Indecopi will be able to provide support for any subsequent queries or doubts that stakeholders may have.

Direct Labour

Please see Project Proposal in Supporting Documents folder.

Are there any supporting document attached?

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Project No.
Project Title
Project Status
Fund Account
Sub-fund
Project Year
Project Session
APEC Funding
Co-funding Amount
Total Project Value
Sponsoring Forum
Topics
Committee
Other Fora Involved
Other Non-APEC Stakeholders Involved
Proposing Economy(ies)
Co-Sponsoring Economies
Expected Start Date
Expected Completion Date
Project Proponent Name 1
Job Title 1
Organization 1
Telephone 1
Email 1
Project Proponent Name 2
Job Title 2
Organization 2
Telephone 2
Email 2
Declaration
Project Summary
Relevance
Objectives
Alignment
Beneficiaries and Outputs
Dissemination
Gender
Work Plan
Risks
Monitoring and Evaluation
Linkages
Sustainability
Direct Labour
Are there any supporting document attached?
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Secretariat Comments
Reprogramming Notes
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Content Type: Standard Proposal