Algorithmic Marketing And Eu Law On Unfair Commercial Practices

Artificial Intelligence (AI) systems are increasingly being deployed by marketing entities in connection with consumers' interactions. Thanks to machine learning (ML) and cognitive computing technologies, businesses can now analyse vast amounts of data on consumers, generate new knowledge, use it to optimize certain processes, and undertake tasks that were previously impossible. Against this background, this book analyses new algorithmic commercial practices, discusses their challenges for consumers, and measures such developments against the current EU legislative framework on consumer protection. The book adopts an interdisciplinary approach, building on empirical findings from AI applications in marketing and theoretical insights from marketing studies, and combining them with normative analysis of privacy and consumer protection in the EU. The content is divided into three parts. The first part analyses the phenomenon of algorithmic marketing practices and reviews the main AI and AI-related technologies used in marketing, e.g. Big data, ML and NLP. The second part describes new commercial practices, including the massive monitoring and profiling of consumers, the personalization of advertising and offers, the exploitation of psychological and emotional insights, and the use of human-like interfaces to trigger emotional responses. The third part provides a comprehensive analysis of current EU consumer protection laws and policies in the field of commercial practices. It focuses on two main legal concepts, their shortcomings, and potential refinements: vulnerability, understood as the conceptual benchmark for protecting consumers from unfair algorithmic practices; manipulation, the substantive legal measure for drawing the line between fair and unfair practices.

Artificial Intelligence (AI) systems are increasingly being deployed by marketing entities in connection with consumers’ interactions. Thanks to machine learning (ML) and cognitive computing technologies, businesses can now analyse vast amounts of data on consumers, generate new knowledge, use it to optimize certain processes, and undertake tasks that were previously impossible. Against this background, this book analyses new algorithmic commercial practices, discusses their challenges for consumers, and measures such developments against the current EU legislative framework on consumer protection. The book adopts an interdisciplinary approach, building on empirical findings from AI applications in marketing and theoretical insights from marketing studies, and combining them with normative analysis of privacy and consumer protection in the EU. The content is divided into three parts. The first part analyses the phenomenon of algorithmic marketing practices and reviews the main AI and AI-related technologies used in marketing, e.g. Big data, ML and NLP. The second part describes new commercial practices, including the massive monitoring and profiling of consumers, the personalization of advertising and offers, the exploitation of psychological and emotional insights, and the use of human-like interfaces to trigger emotional responses. The third part provides a comprehensive analysis of current EU consumer protection laws and policies in the field of commercial practices. It focuses on two main legal concepts, their shortcomings, and potential refinements: vulnerability, understood as the conceptual benchmark for protecting consumers from unfair algorithmic practices; manipulation, the substantive legal measure for drawing the line between fair and unfair practices.

The Unfair Commercial Practices Directive is the most important directive in the field of trade practices to have emerged from the EC but it builds upon European activity which has sought to regulate trade practices on both a sectoral and horizontal level. It is an umbrella provision, which uses general clauses to protect consumers. How effective this approach is and how it relates the existing acquis are fundamental issues for debate. This work provides a critical appraisal of the Unfair Commercial Practices Directive linking discussion of it to general debates about how fair trading should be regulated. It explains how the Directive fits into the existing acquis. It also examines national traditions where these are necessary to explain the European approach, as in the case of general clauses. The book will be a valuable tool for any student of consumer law seeking to understand the thinking behind the directive and how it will affect national laws. It will also influence policy makers by suggesting how the directive should be interpreted and what policy lies behind its formulation. Businesses and their advisers will use the book as a means of understanding the new regulatory climate post-the directive.

This book gathers contributions from a broad range of jurisdictions, written by practitioners and academics alike, and offers an unparalleled comparative view of key issues in competition law, intellectual property and unfair competition law, with a specific focus on the use of personal data. The first part focuses on the role of competition law in shaping the digital economy. It discusses the use of personal data, the market power of platforms, the assessment of free services, and more broadly the responsibility of dominant companies in the smooth functioning of the digital economy. In turn, the second part sheds light on how the conduct of influencers, native advertising and the use of AI for marketing purposes can be controlled by the law, focusing on the use of personal data and the impact of behavioral advertising on consumers. In this regard, the book brings together the current legal responses across a number of European and other countries, all summarized and elaborated on in the form of two international reports. The LIDC is a long-standing international association that focuses on the interface between competition law and intellectual property law, including unfair competition issues.

One of the most important EU consumer protection directives of the past decade, the 2005 Unfair Commercial Practices Directive, or UCPD, is brought under examination in this stimulating volume. Bringing together leading experts in the comparative law and consumer law domain, the book discusses the impact of the Directive and whether the many possible issues identified at its inception have been borne out in practice. Divided into four parts of 'Implementation, Approximation and Harmonization', 'Vulnerability', 'The UCP Directive and Other Regimes', and finally 'Enforcement', the volume examines the various policy developments, the growing body of case law, the decisions of relevant national enforcement authorities, as well as the legislative debates which have surrounded the implementation of the UCPD in Member States. This book provides a valuable assessment of the impact of a major EU directive almost ten years after its adoption, and as such will be of interest to academics, legal practitioners and the judiciary working in the areas of European and Consumer law.

The law on marketing and advertising has undergone profound changes based on the EU directives on unfair commercial practices and misleading and comparative advertising. The legislation partially requires full harmonisation and contains a comprehensive blacklist of prohibited practices. However, in other areas, only minimum harmonisation is required. A comprehensive case law from the CJEU has emerged, but still many issues remain open, unclear and debated. The EU Commission has an active interest in the field and has published numerous reports on the question. In addition it has developed revised, comprehensive guidelines on marketing business to consumer (B2C), which are fully discussed here. Further Commission initiatives in the area on business to business (B2B) marketing are also in the making, underlining the importance of this new collection.

To encourage cross-border transactions in the Single Market of the European Community, the Commission has proposed general framework legislation to set general standards that forbid unfair marketing practices towards consumers, thereby increasing consumer confidence when deciding whether or not to shop abroad in the Community, either in person or through modern methods of electronic purchasing through the Internet. The essays in this volume critically examine the proposed Directive that prohibits unfair commercial practices, and in particular they consider the potential legal and economic implications of a legal duty to trade fairly in the context of general contract law, the protection of consumers, and the needs of competition policy. The distinguished authors of these essays, from Finland, Germany, Italy, The Netherlands, Spain, and the United Kingdom, explain the different approaches of national legal systems to the legal regulation of marketing practices, and assess the compatibility of the proposed Directive with national law and its likely success in achieving the promotion of trade in the Single Market. About the authorHugh Collins is Professor of English Law at the London School of Economics. He studied law at Oxford and Harvard. He has published extensively in the field of contract law including The Law of Contract 4th ed (London, Butterworths, 2003), and Regulating Contracts (Oxford, Oxford University Press, 1999).

This book investigates the regime of consumer benchmarks in the Unfair Commercial Practices Directive and explores to what extent this regime meets each of the goals of the Directive. In particular, it assesses whether the consumer benchmarks are suitable in terms of achieving the three goals of the Directive: achieving a high level of consumer protection, increasing the smooth functioning of the internal market, and improving competition in the market as such. In addition to providing a thorough analysis of the consumer benchmarks and their relationship to the goals of the Directive, at a more practical level, the book provides insight into the working and consequences of the benchmarks that can be used in the evaluation of the Unfair Commercial Practices Directive and its application by the CJEU. This assessment is important because the Directive, while promising to regulate unfair commercial practices in a way that achieves the Directive’s goals, has removed the possibility for Member States to regulate unfair commercial practices themselves.