The Transparent Trap: A Multidisciplinary Perspective on the Design of Transparent Online Disclosures in the EU

Abstract

In its drive to prevent market failures and safeguard consumers, the European legislator has embraced the information approach. In the context of online trade, this requires online traders to disclose ever-growing amounts of information to consumers regarding contract terms, the handling of their personal information, and the use of cookies on the trader’s website, to name just a few of the areas involved. Nevertheless, whilst adopting substantive information obligations for traders, the European legislator still tends to disregard scholarship on effective information design. This paper recommends empirically tested, interdisciplinary criteria for the design of effective disclosures online, with a focus on their application in the EU. Without clear guidance as to how disclosures should be formulated, traders are left open to accidental or purposeful obfuscation.

Keywords: transparency, information obligations, online communication, consumer protection, information design.

JEL Classification: K12