Insights and Analysis
AI-washing – when AI hype becomes a litigation risk
AI-washing – when AI hype becomes a litigation risk
Businesses operating in Spain must provide clear, accurate and accessible information on prices, products, delivery terms, personalised offers, search results, and consumer reviews.
Failing to do so may be considered a misleading unfair practice, exposing the company to regulatory and reputational risk.
Robust internal processes and documentation are essential to ensure compliance and maintain consumer trust.
Under Spanish consumer protection law, businesses offering goods or services in Spain are subject to strict transparency obligations regarding commercial information. Article 20 of the Spanish Consumer Protection Law 1/2007 sets out mandatory information requirements applicable exclusively in Spain. Non-compliance may qualify as a misleading unfair commercial practice under Spanish law, with the burden of proof resting on the trader.
When a commercial offer includes information on the characteristics and price of goods or services, Spanish law requires traders to provide clear and accessible information, unless it is evident from the context. This includes, in particular::
All information must be clear, truthful, comprehensible and accessible.
Following the 2021 reform of Spanish Consumer Protection Law 1/2007:
Where consumer reviews are displayed, traders must inform consumers whether—and how—they verify that reviews come from users who have actually purchased or used the product or service.
Authored by Adrián Fernández de Pedro.