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AI, E-Commerce Test Limits of the Reasonable Consumer Standard

AI, E-Commerce Test Limits of the Reasonable Consumer Standard

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The rise of e-commerce and data-driven digital advertising is chipping away at the reasonable consumer standard, a foundational legal concept historically used to determine whether business practices are deceptive, consumer law professionals warn.

Courts determine whether a marketing practice was deceptive by assessing whether hypothetical reasonable consumers would have been misled by a particular statement.

But the growth of digital advertising over the last 30 years has fragmented audiences as consumers’ online experiences become increasingly personalized.

As businesses move toward targeting narrower market segments and embrace AI advertising tools that allow them to quickly iterate advertising statements, consumers may have …

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