Consumer Protection Requirements in Smart Contracts

Document Type : Scientific Research

Authors

1 Islamic Azad University, Tabriz Branch

2 tabriz azad university

Abstract

Abstract:Smart contracts are widely utilized across various industries today. Certain unique features of smart contracts, such as automated execution and formation on the blockchain, distinguish them to some extent from traditional contracts. In the field of consumer law, there is a growing prevalence of smart contracts, raising the question of the extent to which traditional legal principles and consumer protection regulations applicable to conventional and electronic contracts also apply to smart contracts. Additionally, it remains to be determined whether specific legal frameworks need to be developed for this emerging phenomenon. Thus, the primary challenge of this study is to examine the nature of smart contracts within the domain of consumer law and the framework for consumer protection in such contracts. Ultimately, it will be demonstrated that smart contracts executed on the blockchain do not possess a fundamentally novel legal nature; rather, they are traditional contracts implemented through a blockchain infrastructure. However, certain characteristics, such as automated execution and the specific manner of their formation, justify the necessity of tailored protective regulations for consumers.

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