Towards to Sustainable Business: The Fight With Unfair Commercial Practice in Digital Market

With digital marketing playing an increasing role in economy, it is important for legislators to work towards eliminating legal uncertainties in this domain to ensure sustainable development. It matters not only nationally but also internationally in light of the development of technologies, international trade, and border-free services.
In the European Union, one of the policy areas where changes should be made to stimulate transition to sustainable development is trade as a global facilitator of sustainable development. Given the rapid development of technologies, a key role in this context is also played by the fair management of digital marketing. Specifically, the new technologies implemented by enterprises in the digital environment increasingly affect both the choice of business models and online activities (incl. selling).

The aim of the study is to highlight the risks that affect unfair commercial practices in the digital market. The study implements a cross-disciplinary approach by incorporating research methods characteristic of law, economics and management sciences in the methodology.

Overall, the risk factors associated with minor data processing and use for promotional purposes without parents’ consent and the free-market economy where an uncontrolled cross-border transfer and use of consumer data can take place as having the biggest impact on the materialisation of unfair commercial practice and data protection risks. Although some countries have a regulatory framework in place, it is local. For global (incl. international) business activities, the regulatory framework varies.
In respect of unfair commercial practice risk, the authors single out the absence (incl. disproportionality) of effective penal sanctions where the requirements of the Data Protection Regulation are not met in business or the regulatory framework preventing unfair commercial practices as regards publishing inappropriate content, spam etc. is violated. In such cases, lack of anonymity, conduct after establishing violation (incl. actions and process) are mentioned as a major problem.
Although the Latvian regulatory framework envisages consequences for such violations, there are still no clear regulations regarding the enforcement of consumer rights, or the procedural framework of rights protection.
Unfair commercial practices within the digital market are subject to distinct regulatory frameworks in the United States and the European Union. Despite their shared objective of safeguarding consumers against unfair practices, discrepancies arise in terms of legal structures, enforcement mechanisms, and approaches to obtaining consent.

Consequently, this research offers valuable insights to policymakers, businesses, and scholars, underscoring the significance of comprehending and maneuvering through the diverse regulatory environments to foster equitable and transparent digital commerce. Through the promotion of international collaboration and the exchange of knowledge, stakeholders can strive toward harmonized strategies to counteract unfair practices, thereby establishing an equitable business environment and safeguarding consumer interests within the digital marketplace.
Unfair commercial practice regulation varies among EU member states despite harmonization efforts. Differences are observed in scope, enforcement, provisions, penalties, remedies, and cultural factors. Businesses in the EU must navigate these variations for compliance and fair practices. Policymakers can use this knowledge for harmonization, considering cultural and linguistic factors. Further research is needed to monitor and promote a fair and transparent single market in the European Union.