Consumer protection on social media platforms: Tackling the challenges of social commerce

Abstract

A growing number of individuals and businesses are using social media platforms to sell goods and services. Social commerce therefore combines e-commerce features with the rich social interaction that social media fosters. Social commerce is a growing phenomenon, but to expand its reach, trust in online platforms and the processes used to transact is essential. Yet, there is convincing evidence that social media sites are increasingly used by fraudsters, a fact that could rapidly undermine consumer confidence. This chapter explores some key trends as to how social media platforms are used to advertise and buy/sell consumer goods and evaluates their compliance with consumer protection laws. It shows some of the challenges faced by consumers, in particular with the rise of e-commerce scams perpetrated on social platforms. The article reflects on a range of avenues (including self regulation, intermediary liability, collective actions, public enforcement) to improve the protection of users that engage in social commerce or use social platforms more generally.