Jonathan Bick Authors New York Law Journal Article on AI Risks in E-Commerce

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Date Published: 10/19/2026

As e-commerce platforms increasingly deploy artificial intelligence to automate operations, personalize user experiences, and drive sales, businesses face emerging legal exposures. In a recent article for the New York Law Journal, Brach Eichler Counsel Jonathan Bick analyzes key liability risks introduced by autonomous AI tools and outlines proactive contractual safeguards.

The article explores three major areas where AI integration can create legal challenges:

  • Unintentional Contract Formation: Autonomous AI shopping agents browsing and buying on behalf of consumers may create unenforceable agreements. Website hosts can protect themselves by stipulating that only natural persons or authorized corporate entities have the capacity to contract, voiding unauthorized bot-placed orders ab initio, and reserving the right to cancel automated purchases without liability.

  • Pricing Discrimination and Privacy Concerns: Real-time dynamic pricing models and personalized recommendation algorithms risk regulatory scrutiny under antitrust laws (such as price-fixing) or civil rights statutes if pricing disparities affect protected classes. Disclosing automated pricing mechanisms and offering opt-out paths can help reduce regulatory penalties.

  • AI Hallucinations and Deceptive Advertising: Chatbots or generative tools that fabricate discount codes, misquote return rules, or misrepresent product specifications expose businesses to FTC enforcement under Section 5 of the FTC Act. Companies should disclose AI interactions clearly, highlight inherent model limitations, and include robust “as-is” disclaimers requiring users to independently verify critical details.

While updated terms of use cannot eliminate all regulatory or statutory liability, properly tailored agreements establish essential protections, cap potential damages, and insulate e-commerce operators from significant financial and operational risk.

Read the full article in the New York Law Journal: Updating E-commerce Website Terms for Lawful AI Use

Jonathan D. Bick

Jonathan D. Bick

Counsel
Patent, Intellectual Property & IT, Copyright Agent Services

973.403.3155 · 973.618.5555 Fax

Related Practices:   Patent, Intellectual Property & IT

Related Attorney:   Jonathan D. Bick

Related Industry:   Technology