Unfair Terms in Data-Driven Agreements: Insights from User Protection and Competition Law

Document Type : Research Article

Authors

1 Department of International Trade Law, Intellectual Property Law and Cyberspace, Faculty of Law, Shahid Beheshti University, Tehran, Iran

2 Department of Private Law, Faculty of Law, Shahid Beheshti University, Tehran, Iran

10.22059/jolt.2026.405584.1007432

Abstract

In the digital economy, data has become a primary source of value and power, profoundly shaping contractual relations between platforms and users. In this context, unfair terms in data-driven contracts may undermine user rights, reduce transparency, and reinforce the disproportionate power of dominant platforms. Although the personalization of services and contractual terms may enhance user welfare and economic efficiency, the lack of effective oversight and adequate protective rules can enable data exploitation and deepen contractual inequality. Through a comparative analysis of contemporary approaches in advanced legal systems and an examination of challenges within Iranian law, this study demonstrates that the existing framework for protecting users against unfair data-driven terms remains inadequate. It argues for the adoption of transparency obligations in data processing, the formulation of clear criteria for unfairness, and the strengthening of institutional oversight of platforms in order to promote balanced, accountable, and rights-respecting contractual practices.

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Main Subjects


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