Online behavioural advertising (OBA) relies on inferential analytics to target consumers based on data about their online behaviour. While the technology can improve the matching of adverts with consumers' preferences, it also poses risks to consumer welfare as consumers face offer discrimination and the exploitation of their cognitive errors. The technology's risks are exacerbated by the market power of ad intermediaries. This article shows how the Unfair Commercial Practices Directive (UCPD) can protect consumers from behavioural exploitation by incorporating market power analysis. Drawing on current research in economic theory, it argues for applying a stricter average consumer test if the market for ad intermediaries is highly concentrated. This stricter test should neutralize negative effects of behavioural targeting on consumer welfare. The article shows how OBA can amount to a misleading action and/or a misleading omission under Articles 6 and 7 UCPD, as well as an aggressive practice under Article 8 UCPD. It further considers how the recent legislative proposals by the European Commission to enact a Digital Markets Act (DMA) and a Digital Services Act (DSA) may interact with the UCPD and the suggested stricter average consumer test.
Online behaYioural adYertising (µOBA¶) relies on inferential anal\tics to target consumers based on data about their online behaviour. While the technology can improve the matching of adverts Zith consumers¶ preferences, it also poses risks to consumer welfare as consumers face offer discrimination and the exploitation of their cognitive errors. The technolog\¶s risks are exacerbated by the market power of ad intermediaries. This article shows how the Unfair Commercial Practices Directive (UCPD) can protect consumers from behavioural exploitation through incorporating market power analysis. By drawing on current research in economic theory, it argues for applying a stricter average consumer test if the market for ad intermediaries is highly concentrated. This stricter test should neutralize negative effects of behavioural targeting on consumer welfare. The article shows how OBA can amount to a misleading action and/or a misleading omission according to Articles 6 and 7 UCPD as well as an aggressive practice according to Article 8 UCPD. It further considers how the recent legislative proposals by the European Commission to enact a Digital Markets Act (DMA) and a Digital Services Act (DSA) may interact with the UCPD and the suggested stricter average consumer test.
Defence date: 10 July 2014 ; Examining Board: Hans-Wolfang Micklitz, European University Institute (Supervisor); Giorgio Monti, European University Institute; Geraint Howells, University of Manchester; Viktor Kreuschitz, General Court of the European Union. ; This thesis examines the relationship between the law on unfair commercial practices and consumer contract law. The thesis develops the claim that Directive 2005/29/EC, on unfair commercial practices (UCPD) has had a strong impact on the content of consumer contract law, despite the declaration concerning the independence between both branches of law contained in Article 3(2) UCPD. In order to substantiate this claim, the thesis examines the implications for consumer contract law of the main components of the regulatory regime laid down by the UCPD, namely, (1) the notion of average consumer, (2) the duty to trade fairly, (3) the duty of information and (4) the remedies. By looking both at the theoretical underpinnings and at the actual operation of this regulatory regime, the thesis casts light on the way in which the UCPD has shaped consumer contract law. The thesis further shows that this is an ongoing phenomenon whose ramifications may be far-reaching, for it implies that the UCPD is powerfully fuelling the Europeanization of contract law.
Dottorato di ricerca in Diritto dei contratti pubblici e privati ; In data 11 maggio 2005, il Parlamento europeo e la Commissione hanno adottato la direttiva 2005/29/CE relativa alle pratiche commerciali sleali poste in essere tra imprese e consumatori nel mercato interno. La presente direttiva intende contribuire al corretto funzionamento del mercato interno e al conseguimento di un livello elevato di tutela dei consumatori mediante l'armonizzazione delle disposizioni legislative, regolamentari e amministrative degli Stati membri in materia di pratiche commerciali sleali. Scopo del presente lavoro vuole essere quello di indagare la fattispecie in commento, avendo particolare riguardo alle disposizioni nazionali di recepimento della suddetta direttiva comunitaria (D.Lgs., n. 146 del 2 agosto 2007). Ove si volesse sinteticamente rievocare la recente evoluzione normativa che ha condotto all'affermazione di un diritto dei consumatori anche nel nostro Paese, sarebbe possibile configurarla come un tentativo di superamento dell'inadeguatezza della disciplina codicistica e delle tecniche di tutela dei diritti basate sull'azione in giudizio del singolo interessato. Il fine è quello di attribuire al consumatore e, oggi, anche alle microimprese, una posizione giuridicamente più forte per compensare la loro intrinseca debolezza sul piano sostanziale. La disciplina relativa alle pratiche commerciali scorrette estende la tutela del consumatore - oltre la soglia stessa del contratto - all'intero rapporto di consumo. Il complesso di questa normativa, elaborata proprio per superare la constatata inadeguatezza della tutela "formale" garantita dal codice civile, determina una necessaria esigenza di adeguamento del sistema e degli stessi abiti mentali degli operatori del diritto, aprendo una serie di questioni su cui è utile soffermarsi. Si tratta di individuare il nuovo punto di equilibrio nei rapporti tra autonomia dei privati e ordinamento. In tale contesto, occorre ricostituire un bilanciamento degli interessi e degli adeguati criteri di giudizio volti a chiarire se la normativa a tutela dei consumatori esprima un'istanza di tipo dirigista oppure si configuri come una nuova frontiera dell'affermazione della libertà dell'individuo. Si può proporre un primo tentativo di risposta che ruota intorno alla consapevolezza e all'autonomia della scelta di consumo. Queste devono essere garantite nella loro effettività in quanto divengono, nel quadro del mercato concorrenziale, un momento altrettanto essenziale come quello della competizione tra le imprese. Il consumatore, infatti, potendo scegliere tra le varie offerte induce una pressione nei confronti delle imprese che devono sforzarsi di offrire beni e servizi sempre migliori. La volontà e la capacità di giudizio del consumatore devono essere protette da abusive pressioni esterne, senza però essere annullate o sostituite integralmente da determinazioni eteronome di natura amministrativa o giudiziale. In questo contesto assume un ruolo rilevante l'Autorità Garante della Concorrenza e del Mercato la quale, chiamata a vigilare anche in materia di pratiche commerciali scorrette, ha il delicato compito di rendere operativo l'insieme delle tutele previste in astratto dalla legge senza pregiudicare la libera e consapevole scelta del consumatore nonché la libertà di impresa. Seguendo tali linee programmatiche sarà possibile individuare i punti di forza e nello stesso tempo di debolezza che potrebbero rilevare in sede di tutela civilistica delle ragioni del consumatore non trascurando il fatto che, da un lato, la disciplina delle pratiche commerciali scorrette non è stata disegnata dalla direttiva 2005/29/CE in funzione della produzione di effetti inerenti ai rapporti contrattuali tra il professionista e il consumatore, dall'altro, è la prassi che impone di approfondire tale interessante profilo di indagine. Tra gli obiettivi del presente lavoro si inseriscono, altresì, talune necessarie considerazioni in merito alla disciplina statunitense delle unfair commercial practices – frutto di un periodo di ricerca che, colui che scrive, ha avuto l'onore e il piacere di svolgere negli Stati Uniti d'America presso la Fordham University School of Law (New York City). ; The Directive on Unfair Commercial Practices was adopted on May 2005. Commercial practice refers to activities linked to the promotion, sale or supply of a product to consumers. It covers any act, omission, course of conduct, representation or commercial communication – including advertising and marketing – which is carried out by a trader. If it is unfair, this means it is deemed to be unacceptable with regards to the consumer, according to specified criteria. The Directive has been passed to strengthen the confidence of European consumers in cross-border transactions. Evidence showed that citizens were unsure if their rights would be adequately protected in international purchases and were therefore not taking advantage of the European Internal Market. The Directive aims to clarify consumers' rights and to simplify cross-border trade. Common rules and principles will give consumers the same protection against unfair practices and rogue traders whether they are buying from their corner shop or purchasing from a website based abroad. The Directive brings harmonization and mutual recognition between states, bringing down internal market barriers. On September 21, 2007, Legislative Decrees n. 145/2007 and 146/2007 entered into force, transposing Community Directive 2005/29/EC into the Italian law. These decrees modify the rules on misleading and unlawful comparative advertising (by modifying the Legislative Decree no. 206/2005 - Consumer Code) and introduce a new set of rules on improper or unfair commercial practices, entrusting its implementation to the Antitrust Authority. Commercial practices are considered unfair if they run "contrary to the requirements of professional diligence and materially distorts or is likely to materially distort the economic behaviour with regard to the product of the average consumer whom it reaches or to whom it is addressed, or of the average member of the group when a commercial practice is directed to a particular group of consumers. " (Section 20(2) of the Consumer Code). Two different types of unfair commercial practices have been distinguished. One concerns "misleading practices," which may involve " misleading actions" or " misleading omissions." Actions or omissions are considered misleading to the extent that they induce average consumers to make decisions they would not have made otherwise. Another type of unfair commercial practices concerns "Aggressive practices" wich are practices that employ harassment, coercion or other undue forms of influence to pressure the average consumer into making commercial decisions they would not have made otherwise. The new set of rules also identifies commercial practices which are in all circumstances considered misleading or aggressive and no additional burden of proof is necessary to demonstrate their capacity to misguide consumer choices. About unfair commercial practices, misleading and unlawful comparative advertising, the new rules empower the Antitrust Authority to launch proceedings also ex-officio (i.e. even when no complaints have been received from external sources). It is endowed with investigatory powers, including the ability to gain access to any pertinent document and to request pertinent documents or information from anyone, the capacity to sanction refusals to cooperate or the transmission of untruthful documentation or information, to conduct inspections, to receive assistance from the Italian Tax Police and to conduct surveys and economic analyses. From the studies relating to the Italian law discipline it has emerged that the discussion about unfair commercial practices finds a significant example in unfair practices regulated from Federal Trade Commission Act wich is even worth analyzing. The Phd thesis also investigates the likely impact of the consumer regulation on the private law of contract and the consumer's right of redress.
This paper deals with the problematic detection of the limits of unfair commercial prohibition institute that recently emerged in European consumer law. Some time ago the Community legislation of consumer protection did not cover all areas and dealt only individual sectors. This situation has been completely changed after the directive, setting main unfair commercial practices prohibition principles towards consumers, has been introduced. Detention of the scope of the directive is a complex process, which primarily depends on the kind of content, given the nature of abstract definitions of the directive. Directive has established that as the commercial activities may be recognized any dealer's act, omission, conduct or statement, accordingly the scope of the directive provisions become extremely broad. The content of commercial activities are limited with necessary direct element – the recognition of the commercial activities must be directly related to product promotion, sale or supply. Directive, regulation of unfair commercial traders actually intended to protect the average consumer who is reasonably well informed, observant and circumspect, protection. Lower the average consumer standards apply particularly to vulnerable groups of consumers. Although the directive provides for certain exemptions from its scope, the majority of these exceptions are of highly abstractly nature, and therefore extremely difficult to draw specific boundaries, where the operation of the directive expires. Faced with the directive, there is a need to pursue a very careful analysis of the facts and perform their classification in strict accordance with the directive. The directive's provisions relative to the current national regulation depends on the nature of the national standards – whether they are implementing Community rules or introducing national rules. At the end of the transitional period laid down in the directive, this situation is going to change as the national law, which implements the right to apply more stringent than those provided for by the rules of regulation, will loose the precedence over the provisions of the directive.
This paper deals with the problematic detection of the limits of unfair commercial prohibition institute that recently emerged in European consumer law. Some time ago the Community legislation of consumer protection did not cover all areas and dealt only individual sectors. This situation has been completely changed after the directive, setting main unfair commercial practices prohibition principles towards consumers, has been introduced. Detention of the scope of the directive is a complex process, which primarily depends on the kind of content, given the nature of abstract definitions of the directive. Directive has established that as the commercial activities may be recognized any dealer's act, omission, conduct or statement, accordingly the scope of the directive provisions become extremely broad. The content of commercial activities are limited with necessary direct element – the recognition of the commercial activities must be directly related to product promotion, sale or supply. Directive, regulation of unfair commercial traders actually intended to protect the average consumer who is reasonably well informed, observant and circumspect, protection. Lower the average consumer standards apply particularly to vulnerable groups of consumers. Although the directive provides for certain exemptions from its scope, the majority of these exceptions are of highly abstractly nature, and therefore extremely difficult to draw specific boundaries, where the operation of the directive expires. Faced with the directive, there is a need to pursue a very careful analysis of the facts and perform their classification in strict accordance with the directive. The directive's provisions relative to the current national regulation depends on the nature of the national standards – whether they are implementing Community rules or introducing national rules. At the end of the transitional period laid down in the directive, this situation is going to change as the national law, which implements the right to apply more stringent than those provided for by the rules of regulation, will loose the precedence over the provisions of the directive.
