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Kahneman subverted: Behavioural economics weaponised as dark patterns pump ecom, platform profits – prepare for legal change, warns Consumer Policy Research Centre
Lawmakers around the world are setting their sights on ‘dark patterns’, the way consumer choice is manipulated wholesale by companies for profit – either directly by upselling and herding them into higher yielding decisions, or locking them into services, or “data grabs” that can be monetised indirectly. Australia is next off the rank, and businesses should take action now, starting with UX design, according to Chandni Gupta, Deputy CEO of influential think tank the Consumer Policy Research Centre, who’s work underpins key planks of the ACCC’s regulatory overhauls and which holds sway in Canberra.
Dark patterns are “entrenched” across the digital economy – with companies “reverse engineering” the “nudge” principles of Daniel Kahneman’s behavioural economics to serve profit rather than help people make better choices, says Gupta. Already, the likes of LinkedIn, Amazon, TikTok, Meta and Epic Games have run afoul of regulators, while ticketing platform StubHub has conducted experiments that show the double-digit profit impact of manipulating consumer choice via hidden costs.
Gupta, back from a global tour or regulators, lawmakers and enforcement bodies, and armed with a fresh report on her findings, says the practice is so widespread across the digital economy that most young adults have probably never lived in a world where they are not being manipulated. AI risks “supercharging” the practice – and making dark patterns darker still.
But Gupta warns businesses to prepare for regulation, enforcement and redress, with the Australian government committed to a ban on unfair business practices – and a strong overlap between dark patterns and the Privacy overhaul now gearing up for its second act.
She sees profit upside for those that overhaul UX design now “to put the person and their wellbeing at the centre” rather than “waiting to be caught”.
See omnystudio.com/listener for privacy information.
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By LiSTNRLawmakers around the world are setting their sights on ‘dark patterns’, the way consumer choice is manipulated wholesale by companies for profit – either directly by upselling and herding them into higher yielding decisions, or locking them into services, or “data grabs” that can be monetised indirectly. Australia is next off the rank, and businesses should take action now, starting with UX design, according to Chandni Gupta, Deputy CEO of influential think tank the Consumer Policy Research Centre, who’s work underpins key planks of the ACCC’s regulatory overhauls and which holds sway in Canberra.
Dark patterns are “entrenched” across the digital economy – with companies “reverse engineering” the “nudge” principles of Daniel Kahneman’s behavioural economics to serve profit rather than help people make better choices, says Gupta. Already, the likes of LinkedIn, Amazon, TikTok, Meta and Epic Games have run afoul of regulators, while ticketing platform StubHub has conducted experiments that show the double-digit profit impact of manipulating consumer choice via hidden costs.
Gupta, back from a global tour or regulators, lawmakers and enforcement bodies, and armed with a fresh report on her findings, says the practice is so widespread across the digital economy that most young adults have probably never lived in a world where they are not being manipulated. AI risks “supercharging” the practice – and making dark patterns darker still.
But Gupta warns businesses to prepare for regulation, enforcement and redress, with the Australian government committed to a ban on unfair business practices – and a strong overlap between dark patterns and the Privacy overhaul now gearing up for its second act.
She sees profit upside for those that overhaul UX design now “to put the person and their wellbeing at the centre” rather than “waiting to be caught”.
See omnystudio.com/listener for privacy information.
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