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AI in Search of Unfairness in Consumer Contracts: The Terms of Service Landscape

Author

Listed:
  • F. Lagioia

    (University of Bologna
    European University Institute)

  • A. Jabłonowska

    (Institute of Law Studies, Polish Academy of Sciences)

  • R. Liepina

    (University of Maastricht)

  • K. Drazewski

    (Bureau Européen des Unions de Consommateurs)

Abstract

This article explores the potential of artificial intelligence for identifying cases where digital vendors fail to comply with legal obligations, an endeavour that can generate insights about business practices. While heated regulatory debates about online platforms and AI are currently ongoing, we can look to existing horizontal norms, especially concerning the fairness of standard terms, which can serve as a benchmark against which to assess business-to-consumer practices in light of European Union law. We argue that such an assessment can to a certain extent be automated; we thus present an AI system for the automatic detection of unfair terms in business-to-consumer contracts, a system developed as part of the CLAUDETTE project. On the basis of the dataset prepared in this project, we lay out the landscape of contract terms used in different digital consumer markets and theorize their categories, with a focus on five categories of clauses concerning (i) the limitation of liability, (ii) unilateral changes to the contract and/or service, (iii) unilateral termination of the contract, (iv) content removal, and (v) arbitration. In so doing, the paper provides empirical support for the broader claim that AI systems for the automated analysis of textual documents can offer valuable insights into the practices of online vendors and can also provide valuable help in their legal qualification. We argue that the role of technology in protecting consumers in the digital economy is critical and not sufficiently reflected in EU legislative debates.

Suggested Citation

  • F. Lagioia & A. Jabłonowska & R. Liepina & K. Drazewski, 2022. "AI in Search of Unfairness in Consumer Contracts: The Terms of Service Landscape," Journal of Consumer Policy, Springer, vol. 45(3), pages 481-536, September.
    • Handle: RePEc:kap:jcopol:v:45:y:2022:i:3:d:10.1007_s10603-022-09520-9
    DOI: 10.1007/s10603-022-09520-9
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    References listed on IDEAS

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    1. Marco Loos & Joasia Luzak, 2016. "Wanted: a Bigger Stick. On Unfair Terms in Consumer Contracts with Online Service Providers," Journal of Consumer Policy, Springer, vol. 39(1), pages 63-90, March.
    2. Hans-W. Micklitz & Przemysław Pałka & Yannis Panagis, 2017. "The Empire Strikes Back: Digital Control of Unfair Terms of Online Services," Journal of Consumer Policy, Springer, vol. 40(3), pages 367-388, September.
    3. Quentin André & Ziv Carmon & Klaus Wertenbroch & Alia Crum & Douglas Frank & William Goldstein & Joel Huber & Leaf Boven & Bernd Weber & Haiyang Yang, 2018. "Consumer Choice and Autonomy in the Age of Artificial Intelligence and Big Data," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 5(1), pages 28-37, March.
    4. J. Yannis Bakos, 1997. "Reducing Buyer Search Costs: Implications for Electronic Marketplaces," Management Science, INFORMS, vol. 43(12), pages 1676-1692, December.
    5. Marco Loos & Joasia Luzak, 2016. "Wanted: a Bigger Stick. On Unfair Terms in Consumer Contracts with Online Service Providers," Journal of Consumer Policy, Springer, vol. 39(1), pages 63-90, March.
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