Platform Search Regulation and Sustainability: The case of Fashion E-Commerce
Type
conference contribution
Date Issued
2025
Author(s)
Abstract
The increasing consumer demand for sustainable products has led e-commerce platforms to adopt various actions, such as sustainability filters and labels, to facilitate product discovery. However, the risk of 'greenwashing'—where vague or misleading claims erode consumer trust—triggers regulatory interventions. This paper empirically assesses the causal impact of two distinct, regulator-driven platform design changes on consumer purchasing behavior in the context of sustainable fashion e-commerce. Leveraging a unique natural experiment on a leading European fashion e-commerce platform, we analyze the effects of (1) the removal of a broad 'sustainable' product filter and (2) the subsequent introduction of more specific, quantitative sustainability information on fashion products. Using a Difference-in-Difference (DiD) methodology combined with a Two-way Fixed Effects model on a comprehensive dataset of over 200,000 fashion products, our findings reveal significant insights. The removal of the broad sustainability filter led to an average decrease of approximately 6.11% in daily unit sales for sustainable products, with a more pronounced impact on private label products and those with lower sustainability degrees or contested claims. Conversely, the introduction of specific sustainability information resulted in a significant sales decline (approximately 5.64%) for products with unsubstantiated claims, while sales of genuinely sustainable products remained stable. These findings underscore the profound influence of platform design on consumer behavior and market outcomes, providing actionable empirical evidence for policymakers aiming to combat greenwashing and foster fair competition in digital markets.
Language
English (United States)
Keywords
Digital Platforms
Sustainability
Greenwashing
Consumer Behavior
Natural Experiment
E-commerce Regulation
Algorithmic Transparency
Event Title
Conference on Information Systems and Technology (CIST)
Event Location
Atlanta, Giorgia
Event Date
25.-26. October 2025
Subject(s)
Division(s)