Consumer Rights and Algorithms

TL;DR

This paper reviews the evolution of consumer protection law, emphasizing challenges posed by AI and big data in digital markets, and discusses regulatory responses like data privacy laws and dark pattern prohibitions.

Contribution

It provides a comprehensive overview of legal doctrines and recent regulatory measures addressing AI-driven consumer issues in the digital age.

Findings

AI and big data increase consumer fraud risks

Regulatory responses include data privacy laws

Prohibition of dark patterns enhances consumer protection

Abstract

This article summarizes the field of consumer protection law, from its historical roots to the contemporary challenges of the digital age. It outlines the legal doctrines governing consumer deception and unfair trade practices, highlighting the interplay between common-law, statutory, and private modes of regulation. The article then addresses the impact of artificial intelligence and big data on consumer markets, focusing on digital advertising and new forms of consumer fraud. Finally, it explores regulatory responses to these challenges, including data privacy laws and prohibitions on dark patterns, which illustrate the trade-offs inherent in consumer protection frameworks.