Conflicts in marketplaces: liability of digital platforms in modern consumer relationships

Abstract

This paper analyzes issues in consumer relationships within marketplaces or two-sided digital platforms, focusing on the liability regime applicable to platform owners in relation to consumers. First, the concept of a two-sided digital platform, its characteristics, and the externalities generated in this type of market are defined. The consumer relationships between the consumer, the establishment hosted on the platform, and the platform owner are examined. Then, the most common problems for consumers, such as product defects, fraud, and service non-compliance, are addressed. Finally, guidelines are provided to determine the liability of the platform owner, including cases in which joint and several liability with the establishment would be appropriate, and it is concluded that the validity of the limitation of liability depends on the consumer’s expectations and the degree of the platform’s involvement in the consumer contract.