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cloud.google.com·7h ago
AI Research
arXiv CS.AI·Aug 15·5 min read
AI and Consumer Rights in India Working Paper
TL;DR
This working paper evaluates India's Consumer Protection Act, 2019, in the context of AI-related harms, highlighting gaps in liability allocation across the AI value chain. It finds that while the Act's definitions are broad enough to encompass AI issues, significant challenges in proving causation and overlapping responsibilities complicate enforcement.
✦ Why It Matters
Review your AI product's compliance with India's Consumer Protection Act to mitigate liability risks.
Key Takeaways
- Assess your AI product's compliance with existing consumer protection laws.
- Understand the implications of overlapping responsibilities in AI development.
- Prepare for potential legal challenges related to AI product liability.
- Stay informed about updates to consumer protection regulations affecting AI.
Full Summary
As AI technologies become more prevalent in consumer applications, the question of liability for AI-related harms is increasingly important. This working paper assesses whether India's Consumer Protection Act, 2019, effectively addresses damages caused by defective AI products and services.
The Act's definitions of product liability and harm are broad and potentially applicable to various AI-related incidents, such as personal injury and biased outputs. However, challenges arise in proving causation, as AI failures often result from design choices rather than clear defects.
Additionally, the Act's framework assumes distinct roles for manufacturers and service providers, which does not align with the overlapping responsibilities in the AI value chain, including data providers and model developers. The paper concludes that current liability frameworks lack the necessary mechanisms to address the complexities of AI-related harms effectively, necessitating clarification for enforcement.