Artificial Intelligence (“AI”) is clearly becoming an essential component of all sectors of today’s economy, as it is a powerful driver of social transformation, capable of reshaping individual lives and interactions, as well as economic and political organizations. Many legal fields are affected by the use of AI, from data protection, to consumer protection, competition law, intellectual property, e-commerce law, and the general norms of civil and criminal law (e.g., liability issues).
With reference to consumer protection law, the European Parliament recently commissioned two studies aimed at investigating the delicate equilibrium between the pros and cons of using AI in the context of services directed to consumers. In fact, AI may pose significant risks to consumers, challenging key principles of EU consumer law, such as protection of the weaker party and non-discrimination. Machine learning technologies enable traders to parse correlations between consumer data (purchases, sites visited, likes on social networks) and possible responses to ads. The ability to predict consumers’ reactions may lead to forms of manipulation, as consumer responses could be influenced by a lack of information.
Notwithstanding the above, AI systems also present great opportunity, e.g., consumer-empowering AI technologies can help consumers shield themselves from unwanted ads and spam, as well as helping them detect violations of the law and obtain redress[1].
Based on the above, the European Parliament has shown that it is very eager to garner in-depth understanding of the impacts of AI on consumer protection. It firstly commissioned a study titled “Artificial Intelligence (AI): new developments and innovations applied to e-commerce”[2] which discusses the opportunities and challenges stemming from the impact of recent and foreseeable developments in AI on online platforms and marketplaces. The paper advocates the importance of supporting trustworthy and explainable AI (in order to fight discrimination and manipulation and empower citizens) and socially aware AI (in order to fight polarization, monopolistic concentration, and excessive inequality and pursue diversity and openness).
A second in-depth analysis commissioned by the European Parliament is titled “New aspects and challenges in consumer protection” and addresses the new challenges and opportunities for digital services provided by AI, in particular with regard to consumer protection and data protection[3]. This paper addresses the way digital services rely on AI to process consumer data and target consumers with ads and other messages, with a focus on risks to consumer privacy and autonomy, as well as on the possibility of developing consumer-friendly AI applications.
[1] For instance, the “Claudette” system, developed at the European University Institute, uses AI technologies to detect unfair and unlawful clauses in consumer contracts and terms of service—accessible here.
[2] This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on the Internal Market and Consumer Protection of the European Parliament. Issued in June 2020, the full study is accessible here.
[3] This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on the Internal Market and Consumer Protection of the European Parliament. Issued in June 2020, the full study is accessible here.
