AI-enabled goods and services are now commonplace in the Australian market and people interact with AI-enabled products in their daily lives. These products range from entirely online digital products, such as subscription streaming services for entertainment and customer service chatbots, to internet-connected physical goods such as digital assistants in smart phones and smart speakers, to internet-of-things goods that have little to no human interactivity, such as robot vacuums.
AI-enabled products present unique challenges to consumers’ ability to participate fairly and safely in the market and enact their consumer rights using the Australian Consumer Law (ACL). The largest challenge is the opacity of AI and algorithms, making it difficult for individuals to assess whether a good or service meets the consumer guarantees of acceptable quality and fitness for purpose. Consumers understand there is a problem when a toaster doesn’t toast, however it’s near impossible for everyday people to assess the quality and efficacy of AI-enabled products, making it equally impossible to seek remedy using the ACL.
In the broader context of digital markets, in which AI-enabled products exist, practices of deceptive design, unfairness and manipulation should be addressed through economy-wide provisions. As such, DRW supports the introduction of a prohibition on unfair trading and refer to the work of consumer groups such as CHOICE and Consumer Policy Research Centre for further elucidation of the benefits of an unfair trading ban.
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