Artificial Intelligence In E-Commerce: Consumer Manipulation And Product Liability Gaps In India’s Legal Framework
- IJLLR Journal
- Feb 4
- 2 min read
Rudragouda M. Hommaradi, Research Scholar at University Law College & Department of Studies in Law, Bangalore University, Bengaluru
Dr. Suresh V. Nadagoudar, Senior Professor & Research Supervisor at University Law College & Department of Studies in Law, Bangalore University, Bengaluru
ABSTRACT
The application of Artificial Intelligence (AI) within electronic commerce platforms has drastically changed the landscape of the consumer market in India, as the algorithmic systems now dictate product visibility, pricing frameworks, recommendations and targeted advertising which greatly informs consumers’ buying behaviour. Although these innovations provide consumers with increased efficiency, ease of use, and personalisation, they also encourage the manipulation of consumer behaviour in covert, yet very effective ways, while introducing a myriad of complex questions surrounding the accountability and liability for products created by AI technology. In addition, the Indian consumer protection framework, governed mainly by the Consumer Protection Act of 2019 and the Consumer Protection (E-Commerce) Rules of 2020) was developed with the assumption that consumers are human beings who have agency and can make informed choices, and are always able to view and assess a product before purchasing it.
This article examines whether the current Indian legal framework can effectively address consumer protection concerns arising from the use of AI in electronic commerce. In particular, the author will identify significant regulatory “blind spots” regarding the lack of transparency of algorithms, attribution of liability, and the capacity for enforcement by regulatory bodies and governmental institutions. Ultimately, the author will use doctrinal analysis of Indian case law, consumer forum cases, and the comparison with international regulatory models, to propose changes to the current Indian framework to develop an effective consumer protection framework that reflects the realities of technology in the global market and adequately protects consumers autonomy within this evolving digital marketplace.
Keywords: Artificial Intelligence; Digital Market Regulation; Algorithmic Governance; Consumer Protection Law; Platform Liability
