Law Reform: AI Agents And Digital Assistants Are Now Legally Accountable
The European Law Institute's latest model law for digital assistants promises enhanced consumer control and protection in automated transactions.
Digital assistants (or AI agents) are changing how we transact and manage our contracts online. Today, the European Law Institute released model legal rules for digital assistants with respect to consumer rights. This is the first ever transnational “soft law” dedicated to the legal treatment of digital assistants. In this newsletter, we will explain the mechanisms of digital assistance from a legal point of view, how they affects you, and what these rules mean for your daily interactions online.
European Law Institute (ELI) Guiding Principles and Model Rules on Digital Assistants for Consumer Contracts (DACC)
After three years of detailed drafting, revisions, and comprehensive commentary, today 19 May 2025, the European Law Institute (ELI) officially published the Guiding Principles and Model Rules on Digital Assistants for Consumer Contracts (DACC) was published.
These innovative rules introduce clear guidelines for the design and use of digital assistants, tools increasingly used by consumers to automate their contractual transactions.
🤖 Digital Assistants? Absolutely!
Digital assistants have nowadays become part of everyday consumer interactions. Digital assistants are automated applications that can independently manage transactions between consumers and businesses.
Digital assistants operate based on instructions set by users. These can include price limits, product preferences, or specific providers. The assistants then carry out tasks according to these instructions without further human intervention.
Both consumers and businesses are increasingly using digital assistants. Consumers often deploy them to simplify purchasing activities or handle routine tasks. Businesses use digital assistants to manage customer interactions efficiently and to automate sales processes.
The increased use of digital assistants creates practical legal challenges.
One major issue is clarity about who is responsible when a digital assistant completes a transaction. For example, if a digital assistant orders an unwanted item or makes a purchase beyond what was intended, clear rules are required to determine accountability. Without clear legal guidelines, consumers might face unexpected charges or obligations, and businesses may encounter disputes or uncertainties about sales.
The European Law Institute (ELI) has now developed principles and model rules specifically to provide clarity in regulating digital assistants. These guidelines explain how digital assistants should be designed, how they must disclose their actions, and how consumer rights are protected when these tools are used.
For instance, under these rules, consumers always retain the right to review or stop transactions initiated by digital assistants. Businesses must ensure that digital assistants clearly reveal their use to customers. In addition, businesses cannot use confusing tactics that interfere with consumer decision making through these tools.