Gaps in Consumer Protection Regimes: Protecting Nigerians from Algorithmic Harms in the Digital Economy

Abstract

The adoption of digital technologies, particularly Artificial Intelligence (AI), big data, and algorithmic decision-making, has transformed consumer markets, offering unprecedented convenience and personalization. However, these innovations also present novel and complex challenges, such as dark patterns, personalized advertising, and algorithmic pricing, which undermine consumer autonomy, transparency, and fairness. This paper critically examines how Nigeria’s consumer protection framework, notably the Federal Competition and Consumer Protection Act (FCCPA) 2018 and the Nigeria Data Protection Act 2023 (NDPA), responds to these emerging threats. It finds that while existing laws address traditional market imbalances, they are insufficient to regulate opaque and exploitative digital practices. Strengthening the legal and regulatory framework is therefore essential to safeguarding consumer rights in an AI-driven economy. Drawing on regulatory experiences in the European Union, the United States, and India, this paper examines the limitations of Nigeria’s current regulatory regime and offers recommendations to reform consumer protection laws to ensure optimal protection for consumers in the digital marketplace.