User interaction with digital platforms: A consumer protection perspective.
1Federal Trade Commission.
Summary
The Federal Trade Commission (FTC) uses behavioral science to protect consumers in digital markets. Research shows how ad disclosures and website design impact consumer engagement and reporting.
Area of Science:
- Behavioral Economics
- Consumer Protection Law
- Digital Marketplace Dynamics
Background:
- Digital platforms present new challenges for consumer protection.
- The Federal Trade Commission (FTC) employs behavioral insights and empirical methods to address these challenges.
- Understanding consumer behavior in digital markets is crucial for preventing unfair or deceptive practices.
Purpose of the Study:
- To investigate how consumers perceive and respond to advertising disclosures in digital environments.
- To assess the impact of digital design choices on consumer reporting tools.
- To demonstrate the application of behavioral research in prospective remedy evaluation and retrospective assessment of FTC actions.
Main Methods:
- A laboratory experiment examining the effect of advertising disclosure salience on consumer recognition and engagement (viewing time).
- A retrospective analysis using a natural experiment to evaluate the impact of a redesigned consumer complaint website on submission rates and information quality.
Main Results:
- Advertising disclosure salience influences consumer recognition and engagement with ads.
- Usability improvements on a consumer complaint website increased complaint submission rates and data quality.
- Behavioral research can prospectively evaluate remedies and retrospectively assess past actions.
Conclusions:
- Applied research on user behavior informs marketplace oversight and the design of consumer-facing tools.
- Empirical research strengthens evidence-based policymaking in the digital economy.
- Ongoing efforts aim to expand the role of empirical research at the FTC.
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