Past research has shown that online information notices often fail to inform consumers well, even if transparency-enhancing measures are implemented. However, the studies in question have employed research designs that were restricted to pre-contract conclusion scenarios and ad hoc, text-only...

Consumer protection shifts risks from consumers to businesses. This raises marginal costs and equilibrium prices. It is justified when markets are not strong enough to allocate contractual risks or accident risks efficiently, especially in cases of severe asymmetric information between suppliers...