Protecting privacy in the digital marketplace: A comparative study of legal mechanisms for consumer rights in the metaverse

Abstract

The promotion of fair trade and consumer protection is the heart of every nation. The world, during the struggles of the COVID-19 pandemic, has witnessed huge growth in e-commerce markets and has scaled new heights by reducing e-physical barriers and maintaining social distancing. E-commerce entities have been trying to fill the gaps in their business by incorporating a new type of e-commerce market called business to avatar (B2A) through the metaverse. These technologies have been providing personalised recommendations and have been very profitable for every e-commerce platform and consumer. However, this win-win situation is marred by an increase in consumer privacy and data protection concerns. This paper explores the legal regulations protecting consumer privacy in India, analysing whether the existing legislation adequately addresses contemporary privacy challenges, especially when compared to the robust legal framework in the US and EU. Based on the research, the authors observe that: (i) adoption of the metaverse application in e-commerce has fundamentally benefited consumers; (ii) the developing e-commerce market has been adversely impacted by consumer privacy and data protection concerns; and (iii) to create a balance between developing e-commerce industries and to build consumer trust the regulators are required to improve the level of supervision along with imposing a huge penalty for data breaches. Finally, a way forward is suggested to achieve a constitutional mandate for the state to protect the fundamental right to privacy of every individual.