Consumers are limited by the amount of information they can process and are influenced by various cognitive and behavioural biases. These biases include loss aversion, overconfidence or short-sightedness in decision making. Additionally, the way information is framed or presented through techniques such as anchoring, framing or priming effects, significantly shapes consumer choices. As a result, consumers often make decisions that may not be in their best interests, highlighting the need for policies that consider these complex behavioural patterns.

Early applications of behavioural insights in consumer policy highlighted the need for transparency and reduced switching costs in sectors with complex pricing practices, such as telecommunications, energy, and finance.

Since the release of the 2010 Consumer Policy Toolkit, the importance of behavioural insights in consumer policy has been widely recognised across OECD guidance. Key applications include enhancing information disclosures, addressing unfair commercial practices, and empowering consumers to make better and more sustainable choices. Behavioural insights now play a crucial role in consumer policy and related fields like competition, data protection, finance, and health.

While consumer protection authorities in most OECD countries now recognise the importance of behavioural insights, many legal and judicial frameworks have yet to fully adapt to this evolving paradigm. This discrepancy is partly due to the scarcity of empirical consumer behavioural research, which could significantly bolster effective policymaking and enforcement decisions. Therefore, there is an urgent need for more extensive research initiatives, including cross-country surveys and behavioural experiments, to better inform and support consumer protection efforts.