AI Legal Lens with AST Hampsons - Consumer Protection

Posted on 26 Feb 2025

When using AI into consumer protection you must be aware of the benefits and pitfalls this may bring.  One disadvantage is that AI has the power to harm consumers by manipulating them into decisions they may not have made before, this could be done in a way where the consumer wouldn’t know they were being manipulated.  AI could be used to make decisions against a consumer that, under normal circumstances, may not have been made.

The good news is that in the UK AI integration into consumer products and services necessitates compliance with the Consumer Rights Act 2015. This legislation mandates businesses to provide clear, accurate information about AI-driven offerings, ensuring consumer decisions are informed. It also grants consumers redress for AI-influenced faulty products/services. Compliance in sectors like automated customer service and decision-making is vital, requiring businesses to uphold transparency and accountability in AI deployments.