ARTIFICIAL INTELLIGENCE IN DIGITAL TRANSACTIONS AND CONSUMER VULNERABILITY: A CONSUMER PROTECTION LAW PERSPECTIVE

Artificial intelligence (AI) has increasingly become an integral component of digital transactions, reshaping how goods and services are offered, priced, and delivered to consumers. Algorithmic decision-making systems  such as automated recommendations, dynamic pricing, and smart contracts  introduce efficiency and personalization, yet simultaneously generate new legal risks related to transparency, fairness, accountability, and consumer autonomy. This article examines the legal implications of AI-driven digital transactions on consumer rights from a consumer protection law perspective. Using a normative and conceptual legal approach, complemented by comparative regulatory analysis, the study explores how existing consumer protection frameworks respond to algorithmic opacity, information asymmetry, and shifting liability structures caused by AI deployment. The findings reveal significant regulatory gaps, particularly in addressing algorithmic bias, automated consent, and the allocation of responsibility between developers, platforms, and traders. The article argues that traditional consumer protection doctrines are increasingly strained by AI-mediated transactions and require adaptive regulatory responses. It proposes a governance-oriented consumer protection model emphasizing transparency obligations, algorithmic accountability, and enhanced consumer remedies. By situating AI within the broader evolution of digital market regulation, this study contributes to ongoing global debates on the future of consumer protection law in the age of artificial intelligence.