The Private Law Working Group hosts a paper presentation by Antonio Davola (LUISS Guido Carli University in Rome) and Ilaria Querci (Ca' Foscari University).
Abstract
Nowadays, it is vastly acknowledged that the majority of business-to-consumer (B2C) interaction is based on consumer profiling, and that individuals’ data is increasingly used as a tool to elaborate and deliver personalised products and services. In general terms, there is consensus that these practices are – or, at least, can be – welfare enhancing if they are properly regulated. At the same time, risks related to unregulated abuse of personalized commercial practices are present and significant, and it is no surprise that in recent times profiling and micro-targeting came at the centre of the scholarly and regulatory debate.
Within currently existing and forthcoming regulations, a common perspective seems nevertheless to be found: given the capacity of microtargeting to potentially undermine users’ autonomy, the success of the regulatory intervention depends primarily on people being aware of the personality dimension being targeted. As a consequence, disclosure rules arose as a cornerstone in regulating microtargeting: various bodies of law mandate that consumers are provided with information regarding the personalized nature of what they observe on the market, and this approach is likely to be followed in forthcoming regulations as well. Yet, existing disclosures are based on the individualised-format of the model, focusing on the sole relationship between the professional operator and its counterparty: this approach operates in contrast with sociological studies, that consider interaction and observation of the surrounding environment as essential formants in decision-making.
A consideration of a relational dimension of decision-making, which is largely absent in the current framework for consumer protection, is missing in the debate on regulating personalization as well. In light of these aspects, the article defends that consumers’ awareness and understanding of personalisation and its consequences could be improved significantly if information were to be offered according to a relational format: accordingly, we envision a system of contextualized disclosure and test it in the provision of personalized services. The article reports the result of a study conducted in the streaming service market, in which we show that when information is presented in a relational format, people’s knowledge and awareness about profiling and microtargeting is significantly increased, and consumers understand with better clarity what these techniques are, how they function, and are consequently more open to evaluate if they want their information to be acquired.
All interested fellows, PhD researchers, professors and visiting academics are invited to participate. The event will be held online.