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Algorithmic governance and the need for consumer empowerment in data-driven markets

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  • Larsson, Stefan

Abstract

The present article argues that the fact that personal data holds great value, in combination with a lack of transparency in its commercial use, leads to a need for consumer policy that strengthens consumer protection. The widespread practice of user agreements and consent-based regulation of personal data collection is not satisfactory for balancing these information-asymmetric markets. The lack of transparency deriving from the complex and massive datafication of consumers – where consumers are profiled, data is brokered and the algorithmically automated decision-making is opaque – speaks to the need for improved supervision at a more structural level above and beyond the individual consumer's choices, preferably by more active consumer protection authorities.

Suggested Citation

  • Larsson, Stefan, 2018. "Algorithmic governance and the need for consumer empowerment in data-driven markets," Internet Policy Review: Journal on Internet Regulation, Alexander von Humboldt Institute for Internet and Society (HIIG), Berlin, vol. 7(2), pages 1-13.
    • Handle: RePEc:zbw:iprjir:214056
    DOI: 10.14763/2018.2.791
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    References listed on IDEAS

    as
    1. Antony Young, 2014. "1 + 1 = 3," Palgrave Macmillan Books, in: Brand Media Strategy, edition 0, chapter 0, pages 81-99, Palgrave Macmillan.
    2. Juan M. Sanchez, 2008. "The Role of Information in Consumer Debt and Bankruptcy," 2008 Meeting Papers 523, Society for Economic Dynamics.
    3. Rhoen, Michiel, 2016. "Beyond consent: improving data protection through consumer protection law," Internet Policy Review: Journal on Internet Regulation, Alexander von Humboldt Institute for Internet and Society (HIIG), Berlin, vol. 5(1), pages 1-15.
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    Cited by:

    1. A. Davola & I. Querci & S. Romani, 2023. "No Consumer Is an Island—Relational Disclosure as a Regulatory Strategy to Advance Consumer Protection Against Microtargeting," Journal of Consumer Policy, Springer, vol. 46(1), pages 1-25, March.
    2. Padmashree Gehl Sampath, 2021. "Governing Artificial Intelligence in an Age of Inequality," Global Policy, London School of Economics and Political Science, vol. 12(S6), pages 21-31, July.
    3. Latzer, Michael & Festic, Noemi, 2019. "A guideline for understanding and measuring algorithmic governance in everyday life," Internet Policy Review: Journal on Internet Regulation, Alexander von Humboldt Institute for Internet and Society (HIIG), Berlin, vol. 8(2), pages 1-19.

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