| Practice area: | Data & technology |
|---|---|
| Client: | DCMS |
| Published: | 20 January, 2023 |
| Keywords: | qualitative analysis quantitative analysis 2023 consumer behaviour consumer protection data protection digital economy e-commerce |
Digital markets have delivered numerous benefits for consumers, providing a range of new products and services that are designed and personalised with the analysis of consumer data. However, digital markets have given rise to new risks for consumers. It is often the same features that bring benefits that can also cause harm, including higher prices, lower quality due to personalised search result rankings, or overconsumption and unintended purchases or subscriptions. This report by LE reviews the current evidence base and develops a taxonomy of digital consumer harms covering the areas:
- Barriers to effective, informed consumer decision-making
- Misleading or false content
- Barriers to switching and multi-homing
- Unfair consumer data practices
- Exploitative behaviour
The report further analyses the root causes of these harms and posits methodologies for quantifying digital consumer harms. Finally, the report provides illustrative quantifications of two specific harms (deceptive online choice architecture and excessive advertising).
Full report is available here.