Consumer policy and digital technologies

Issues in e-commerce can cause substantial harm to consumers. This includes such practices as unexpected costs, unfair contract terms, misrepresented products or unintentional choices through dark commercial patterns. According to a 2022 OECD study, the cumulative cost of e-commerce problems for OECD consumers, considering their most severe issue in the past year, exceeded USD 22 billion. Understanding consumer harms in online marketplaces is vital for designing effective policies and prioritising enforcement activities.

Global e-commerce now relies heavily on online marketplaces connecting consumers with third-party sellers. Despite their popularity, these platforms introduce consumer risks, especially when third-party sellers employ misleading marketing and fraud, or offer counterfeit or unsafe products. Authorities seek innovative solutions to address these risks while maintaining the many consumer benefits of these innovative business models. The OECD’s work on product safety pledges explores the voluntary commitments online marketplaces can make to ensure products sold on their sites are safe.

Online businesses are increasingly using AI, algorithms and big data to automate decision-making and processes in their products. This can benefit consumers through more tailored services, for example. However, these practices may also introduce new risks, notably in the form of bias and discrimination against specific consumer groups: some consumers may receive less favourable terms or be targeted because of their vulnerability. Such trends illustrate that, increasingly, all consumers may be vulnerable on line at certain times.

Research shows that consumers pay less attention and are less effective at processing information when shopping on line, and they default to simple rules of thumb when faced with information overload. Consumers also tend to underestimate the manipulation and deception they face on line, compared to offline settings. Recent OECD studies assessing the effectiveness of personalised price disclosures find that consumers hardly ever noticed them. Enhancements to the visibility, structural presentation, and standardisation of information provision, can empower consumers to make better decisions - but often complementary measures are necessary to protect consumers.