Platform Search Regulation and Sustainability: The case of Fashion E-Commerce
Type
conference contribution
Date Issued
2025
Author(s)
Abstract
Platforms increasingly introduce sustainability labels to guide consumers toward environmentally friendly products. However, the rise of deceptive practices, such as greenwashing, poses significant challenges to consumer trust and the broader push for sustainability. In response, regulators have intervened on several occasions to ensure greater transparency in sustainability claims. This study examines one specific case involving a major European e-commerce platform, which agreed with regulators to replace ambiguous sustainability labels with clearer, more specific information about products' substantial and evidence-based environmental benefits. Our analysis exploits the complete removal of the recommender system as well as its later reintroduction with stricter sustainability criteria for product recommendations. We find that removing sustainability recommendations primarily harms private label brands, while products from strong brands remain largely unaffected. Furthermore, stricter regulations benefit products with high sustainability scores while penalizing brands with significant shares of greenwashed items, particularly private labels. This research highlights the transformative potential of platform search regulation in fostering authentic sustainability and ensuring consumer trust.
Language
English (United States)
Keywords
platform search regulation
greenwashing
fashion e-commerce
Event Title
Digital Economy Workshop
Event Location
Berlin
Event Date
23.-25. March 2025
Subject(s)
Division(s)