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Consumer protection and AI liability

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2026-08-27 10:51 UTC → 2026-09-05 03:41 UTC · added ~~removed~~

Regulatory and legal discussions regarding consumer protection in the context of artificial intelligence have emerged in different regions. In China, the China Consumers Association (CCA) issued a warning about the risks of generative AI, noting that inaccuracies and inconsistencies can lead to economic losses. The CCA specified that businesses cannot use “algorithmically generated” or “system automatically replied” as justifications to evade legal responsibilities, particularly concerning pricing and after-sales policies. They advised that consumers should not rely on AI for critical legal or contractual decisions without official verification. By the first half of 2026, the CCA reported that AI customer service had become a significant source of consumer disputes. Key concerns include the difficulty of reaching human representatives, AI systems making unhonored promises regarding fees or discounts, and the generation of factually incorrect information. The CCA observed that some businesses use AI primarily for cost-cutting, occasionally rejecting AI-made commitments by claiming that “AI responses do not represent the company’s position.” One reported instance involved a used-car dealer demanding additional registration fees after an AI had promised they were included in the price. In Brazil, legal experts have clarified that AI-generated advertising does not exempt companies from liability. Under the Brazilian Consumer Defense Code, specifically Article 30, any precise information or imagery created by AI that sets a consumer expectation must be fulfilled by the supplier, even if the image was altered to enhance product appearances.

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