AI-Powered Autonomy: Reforming Digital Privacy in Dominant Markets Through Consumer Protection Framework

Moch. Marsa Taufiqurrohman; Tarsisius Murwadji; Helza Nova Lita; Vicko Taniady

doi:10.15294/jllr.v7i3.29596

Authors

Moch. Marsa Taufiqurrohman Faculty of Law, Universitas Padjadjaran, Bandung, Indonesia Author https://orcid.org/0000-0002-5057-3611
Tarsisius Murwadji Faculty of Law, Universitas Padjadjaran, Bandung, Indonesia Author https://orcid.org/0000-0003-3108-8706
Helza Nova Lita Faculty of Law, Universitas Padjadjaran, Bandung, Indonesia Author https://orcid.org/0009-0003-3392-4883
Vicko Taniady Faculty of Law, Monash University, Melbourne, Australia Author https://orcid.org/0000-0002-4817-9869

DOI:

https://doi.org/10.15294/jllr.v7i3.29596

Keywords:

Algorithmic Transparency, Consumer Protection, Digital Rights, AI Governance, Consumer Autonomy

Abstract

This research examines how artificial intelligence and algorithmic systems deployed by dominant digital platforms, particularly in Indonesia’s e-commerce, undermine consumer autonomy through extensive data harvesting and preference manipulation. The study aims to analyze these AI-driven mechanisms against the consumer protection principles set out in Law No. 8/1999, particularly regarding consumers’ rights to accurate information and protection from deceptive practices. The research problem centers on the interpretive legal analysis of whether AI-powered personalization and opaque algorithmic decision-making violate consumer protection obligations, specifically transparency requirements and honest business practices mandated by Indonesian Consumer Protection Law. This study employs a doctrinal legal analysis methodology, incorporating a comparative assessment of Indonesian consumer law against the European Union’s regulatory framework, examining consumer protection frameworks, and conducting comparative case studies from global jurisdictions to develop comprehensive regulatory solutions. The research proposes an AI-Consumer Protection Framework requiring dominant platforms to provide clear, comprehensible information about algorithmic processes affecting consumers, ensuring compliance with transparency obligations under Articles 4 and 7 of the Consumer Protection Law. Findings reveal that current AI practices by digital platforms often violate consumer rights through manipulative algorithms and insufficient disclosure mechanisms. The study concludes that implementing mandatory algorithmic transparency and explainable AI practices would effectively safeguard consumer autonomy while ensuring fair business practices in digital markets. The proposed framework establishes governance structures that uphold consumer rights, promote algorithmic accountability, and support equitable digital commerce while balancing technological innovation with fundamental consumer protections required by Indonesian law.

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