Leveling the Playing Field: Tackling Unfair Contractual Capacity Discrepancies in Artificial Intelligence-driven B2C Financial Transactions
Artificial Intelligence and other digital technologies have been integrated into various industries, impacting consumer rights in Business to Consumer (B2C) transactions. While these technologies have the potential to revolutionize economies and financial transactions, safeguards must be in place to minimize the risks they pose to consumers’ interests. This research considers whether existing regulations protect consumers in cases of B2C unfair practices that could impede their ability to seek justice. The study will analyze critical problems associated with artificial intelligence systems in B2C transactions and financial markets. The analytical comparative method used in this study will reveal various biases and injustices that impact consumer rights and the current legal approach to consumer protection is found to be deficient, and modernizing regulations and promoting transparency is necessary to protect consumer rights. artificial intelligence
1 First: Books
Arslanian, Henri, Fischer, Fabrice, 2019. The Future of Finance: the Impact of FinTech, AI, and Crypto on Financial Services, Palgrave Macmillan.
Bielicki, Damian M., ed. 2022. Regulating artificial intelligence in industry, Routledge.
Denise Meyerson, 2007. Understanding Jurisprudence, Routledge-Cavendish
Ebers, Martin, Navas, Susana, 2020. Algorithms and Law, Cambridge University Press.
Eilís Ferran, Charles Goodhart, 2001. Regulating Financial Services and Markets in the Twenty First Century, Hart Publishing.
Franceschi, Alberto De, et al, eds, 2019. Digital Revolution-New Challenges for Law Data Protection, Artificial Intelligence, Smart Products, Blockchain Technology and Virtual Currencies, Verlag C. H. Beck.
Galitz, W.O., 2007. The essential guide to user interface design: an introduction to GUI design principles and techniques. John Wiley & Sons.
Gerd Leonhard, 2016. Technology vs. Humanity; the coming clash between man and machine, The Futures Agency.
Hamori, S. and Takiguchi, T. eds., 2020. AI and Financial Markets. MDPI-Multidisciplinary Digital Publishing Institute.
Hans-W. Micklitz, Geneviève Saumier eds, 2018. Enforcement and Effectiveness of Consumer Law, Springer.
Iris Benöhr, 2013. EU Consumer Law and Human Rights, Oxford University Press.
James Bradfield, 2007. Introduction to the Economics of Financial Markets, Oxford University Press.
James Bradfield, 2007. Introduction to the Economics of Financial Markets, Oxford University Press.
Jeroen de Ridder, Rik Peels, René van Woudenberg, eds, 2018. Scientism: Prospects and Problems, Oxford University Press.
Karnouskos, Stamatis, 2017. The Interplay of Law, Robots and Society, in an Artificial Intelligence Era, Umeå University, Master’s Thesis.
Kelsen, Hans, 1967. Pure theory of law, trans. Max Knight, California University Press.
Kerrigan, Charles, ed, 2022. Artificial Intelligence Law and Regulation, Edward Elgar Publishing Limited
Martin, Ebers, Susana, Navas, 2020. Algorithms and Law, Cambridge University Press
Mathis, Klaus, Tor, Avishalom Eds, 2021. Consumer Law and Economics, Springer.
Pagallo, Ugo, Durante Massimo, Shara, Monteleone, What Is New with the Internet of Things in Privacy and Data Protection? Four Legal Challenges on Sharing and Control in IoT”, in Leenes, Ronald, et al, eds, 2017. Data Protection and Privacy: (In)visibilities and Infrastructures, Springer.
Rasool, Sanger Ali, 2015. Consumer’s Knowledge of Sale in Iraqi Law; An Analytical Study, PhD Thesis Dissertation, Alexandria University Faculty of Law.
Schirmer, Jan-Erik, 2020, Artificial Intelligence and Legal Personality: Introducing Teilrechtsfähigkeit: A Partial Legal Status Made in Germany, in Wischmeyer, Thomas, and Timo Rademacher, eds. Regulating artificial intelligence Heidelberg: Springer.
Seidler, Victor, 2009. Kant, Respect and Injustice (Routledge Revivals): The Limits of Liberal Moral Theory, Routledge.
Slimi, Nora, 2020. The impact of artificial intelligence on retail banks, (Morocco, Ibn Zohr University, Master thesis.
Tsai-Jyh Chen, ed, 2018. An International Comparison of Financial Consumer Protection, Springer Nature Singapore Pte Ltd.
Tzimas, T., 2021. Legal and Ethical Challenges of Artificial Intelligence from an International Law Perspective (Vol. 46). Springer Nature.
Tzimas, Themistoklis, 2021. Legal and Ethical Challenges of Artificial Intelligence from an International Law Perspective, Springer Nature.
Virginia, Dignum, 2019. Responsible Artificial Intelligence: How to Develop and Use AI in a Responsible Way. Cham Springer.
Wagner, Katja, 2021. Drivers and Barriers of Consumer Behavior Regarding New Technologies and Digital Channels: Investigating the Phenomenon of Anthropomorphism and New Online Consumption Forms, Springer Nature.
Weatherill, Stephen, 2005. EU Consumer Law and Policy, Edward Elgar.
Wischmeyer, T. and Rademacher, T. eds., 2020. Regulating artificial intelligence. Heidelberg: Springer.
Wischmeyer, Thomas, and Timo Rademacher, eds, 2020, Regulating Artificial Intelligence, Heidelberg Springer.
Woodrow Barfield, 2021. The Cambridge Handbook of the Law of Algorithms, Cambridge University Press.
Woodrow Barfield,2021. The Cambridge Handbook of the Law of Algorithms, Cambridge University Press.
Zuboff, Shoshana, 2019. The Age of Surveillance Capitalism: The Fight for a Human Future at the New Frontier of Power, Profile Books.
Agarwal, Sumit, Souphala Chomsisengphet, Neale Mahoney, and Johannes Stroebel, 2014, A simple framework for estimating consumer benefits from regulating hidden fees. The Journal of Legal Studies 43, no. S2, pp 239-252.
Ahmed, Mazin Jalal, Rasool, Sanger Ali, 2017. The Consumer and Their Awareness in Electronic Contract Raparin University Journal, Year, 4th, No. 11, pp 311-339.
Anita K. Krug, 2016. Uncertain Futures in Evolving Financial Markets,” WashingtonUniversity Law Review 93, no. 5, pp 1209-1269.
Coeckelbergh, Mark. 2020. Artificial intelligence, responsibility attribution, and a relational justification of explainability. Science and engineering ethics 26, no. 4, pp 2051-2068.
Commission, European, 2019. Consumer vulnerability across key markets in the European Union.
Corday Richard, 2015. Consumer Protection in the Financial Marketplace,” Harvard Law & Policy Review 9, no. 2, pp, 307-327.
Cowgill, Ashley E., 2019. Artificial Intelligence: A Grayish Area for Insurance Coverage, The Journal of Robotics, Artificial Intelligence & Law 2, no. 1, pp 35-38.
EU Commission. 2020. White Paper on Artificial Intelligence. A European approach to excellence and trust, COM (2020).
Granados, Nelson, Alok Gupta, and Robert J. Kauffman. 2010. Research commentary information transparency in business-to-consumer markets: concepts, framework, and research agenda, Information Systems Research 21, no. 2, pp 207-226.
Grochowski, Mateusz et al, 2022. Algorithmic Price Discrimination and Consumer Protection; A Digital Arms Race? Technology and Regulation, 36-47. Available at: https://doi.org/10.26116/techreg.
Haim, Liran, 2013. Rethinking Consumer Protection Policy in Financial Markets, Journal of Law and Commerce, 32, no. 1, pp, 23-80.
Helberger, N. et al, 2013. Digital Content Contracts for Consumers, Journal of Consumer Policy 36, no. 1, pp 37-58.
Helberger, N., Loos, M.B., Guibault, L., Mak, C. and Pessers, L., 2013. Digital content contracts for consumers. Journal of consumer policy, 36, pp.37-57.
Jabłonowska, A., Kuziemski, M., Nowak, A.M., Micklitz, H.W., Pałka, P. and Sartor, G., 2018. Consumer Law and Artificial Intelligence: Challenges to the EU Consumer Law and Policy Stemming from the Business' Use of Artificial Intelligence-Final report of the ARTSY project. EUI Department of Law Research Paper, (2018/11), pp 1-79.
Jeremy A. Carp, 2018. Autonomous Vehicles: Problems and Principles for Future Regulation, University of Pennsylvania Journal of Law & Public Affairs 4, no. 1, pp 82-148.
Joasia, Luzak, Junuzovic Mia, 2019. Blurred Lines: Between Formal and Substantive Transparency in Consumer Credit Contracts. J. Eur. Consumer & Mkt. L. 8, pp, 1-24.
Krug, A.K., 2015. Uncertain futures in evolving financial markets. Wash. UL Rev., 93, pp1209-1269
Magnuson, William, 2020. Artificial Financial Intelligence, Harvard Business Law Review 10, no. 2, pp, 338-382.
Maja, Brkan, and Bonnet, Grégory, 2020. Legal and technical feasibility of the GDPR’s quest for explanation of algorithmic decisions: of black boxes, white boxes and fata morganas. European Journal of Risk Regulation 11, no. 1, pp, 18-50.
Massimo Durante, 2010. Re-Designing the Role of Law in the Information Society: Mediating between the Real and the Virtual, European Journal of Legal Studies 2, no. 3, pp 19-37.
Nekit, Kateryna, Kolodin, Denis, Fedorov, Valentyn, 2020. Personal Data Protection and Liability for Damage in the Field of the Internet of Things, Juridical Tribune 10, no. 1, pp 80-93.
Nersessian David; Mancha Ruben, 2020. From Automation to Autonomy: Legal and Ethical Responsibility Gaps in Artificial Intelligence Innovation, Michigan Technology LawReview 27, no. 1, pp 55-96.
Nersessian, David, Mancha, Ruben, 2020. From Automation to Autonomy: Legal and Ethical Responsibility Gaps in Artificial Intelligence Innovation, Michigan Technology Law Review 27, no. 1. pp 56-96.
Niziol, Krystyna, 2021. The challenges of consumer protection law connected with the development of artificial intelligence on the example of financial services (chosen legal aspects), Procedia Computer Science.192, pp 4103-4111.
Pailli, Giacomo, Poncibo, Cristina, 2017. The Transformation of Consumer Law Enforcement: An Italian Perspective, Comparative Law Review, 8, no. 2, pp 653-689.
Poillot, Elise, 2018. Codification of French and Luxembourg Consumer Law: Are French and Luxembourg Consumer Codes Going the Same Road,” Revista Brasileira de Direito Civil,17, pp, 125-141.
R. Harmon, H. Junklewitz, I. Sanchez, 2020. Robustness and Explainability of Artificial Intelligence’ EUR 30040 ENEUScienceHub, pp 1-40.
Ribana, Roscher, Bohn, Bastian, Duarte Marco F., and Garcke, Jochen, 2020. Explainable machine learning for scientific insights and discoveries. Ieee Access 8, pp 42200-42216.
Rumi, Tiziana. Ferraro, Angelo Viglianisi, 2020. Consumer Protection and New Contract Law in the European Union and in Italy,” Journal of Liberty and International Affairs, (JLIA) 6, no. 1, pp 87-99.
Shmuel, Becher, 2008. Asymmetric Information in Consumer Contracts: The challenge that is yet to be met. American Business Law Journal 45, no. 4, pp 723-774
William Magnuson, 2020. Artificial Financial Intelligence, Harvard Business Law Review, 10, no. 2, pp, 337-382
Yakup, Durmaz, and Kılınç Neslihan, 2007. The Effect of Asymmetric Information on Consumer Trust in E-Commerce and a Field Work. development, pp 48-53.
Zhu, Kevin, 2004. Information transparency of business-to-business electronic markets: A game-theoretic analysis, Management science 50, no. 5, pp, 670-685.
3 Official Websites
How to Cite
Copyright (c) 2023 Academic Journal of Nawroz University
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors retain copyright
The use of a Creative Commons License enables authors/editors to retain copyright to their work. Publications can be reused and redistributed as long as the original author is correctly attributed.
- The researcher(s), whether a single or joint research paper, must sell and transfer to the publisher (the Academic Journal of Nawroz University) through all the duration of the publication which starts from the date of entering this Agreement into force, the exclusive rights of the research paper/article. These rights include the translation, reuse of papers/articles, transmit or distribute, or use the material or parts(s) contained therein to be published in scientific, academic, technical, professional journals or any other periodicals including any other works derived from them, all over the world, in English and Arabic, whether in print or in electronic edition of such journals and periodicals in all types of media or formats now or that may exist in the future. Rights also include giving license (or granting permission) to a third party to use the materials and any other works derived from them and publish them in such journals and periodicals all over the world. Transfer right under this Agreement includes the right to modify such materials to be used with computer systems and software, or to reproduce or publish it in e-formats and also to incorporate them into retrieval systems.
- Reproduction, reference, transmission, distribution or any other use of the content, or any parts of the subjects included in that content in any manner permitted by this Agreement, must be accompanied by mentioning the source which is (the Academic Journal of Nawroz University) and the publisher in addition to the title of the article, the name of the author (or co-authors), journal’s name, volume or issue, publisher's copyright, and publication year.
- The Academic Journal of Nawroz University reserves all rights to publish research papers/articles issued under a “Creative Commons License (CC BY-NC-ND 4.0) which permits unrestricted use, distribution, and reproduction of the paper/article by any means, provided that the original work is correctly cited.
- Reservation of Rights
The researcher(s) preserves all intellectual property rights (except for the one transferred to the publisher under this Agreement).
- Researcher’s guarantee
The researcher(s) hereby guarantees that the content of the paper/article is original. It has been submitted only to the Academic Journal of Nawroz University and has not been previously published by any other party.
In the event that the paper/article is written jointly with other researchers, the researcher guarantees that he/she has informed the other co-authors about the terms of this agreement, as well as obtaining their signature or written permission to sign on their behalf.
The author further guarantees:
- The research paper/article does not contain any defamatory statements or illegal comments.
- The research paper/article does not violate other's rights (including but not limited to copyright, patent, and trademark rights).
This research paper/article does not contain any facts or instructions that could cause damages or harm to others, and publishing it does not lead to disclosure of any confidential information.