Safeguarding consumers in Web3-driven digital marketing: legal, governance, and financial policy challenges in the metaverse economy

The rapid rise of Web3 technologies, representing the third phase of the internet, is creating a decentralized ecosystem that grants users ownership and control. Concurrently, metaverse platforms supported by virtual and augmented reality technologies signify the emergence of persistent, shared digital universes where users interact through digital avatars. These developments necessitate significant changes in consumer rights and protections within digital marketing processes. While decentralized structures and blockchain-based systems enhance user data sovereignty, they also require the development of novel governance and financial frameworks. In this context, existing legal instruments—particularly the European Union’s Digital Services Act, the U.S. Federal Trade Commission guidelines, and the OECD Principles on Digital Economy—are insufficient to address the technological complexities and dynamic evolution of Web3 and metaverse ecosystems. Notable regulatory gaps persist in key areas, including data security, informed user consent, algorithmic transparency, and digital identity governance. Moreover, the marketing of blockchain-based financial instruments such as Decentralized Autonomous Organizations and Non-Fungible Tokens introduces new vectors of consumer risk and legal ambiguity, exacerbating market volatility. The opacity of algorithm-driven marketing and the potential for covert manipulation in AI-powered personalization further erode consumer trust and undermine market integrity. To ensure robust consumer protection in the digital marketing landscape, legal and regulatory frameworks must align with ongoing technological innovation. This includes mandatory implementation of algorithmic explainability standards, establishment of transparent and accountable governance mechanisms for DAOs, and development of enforceable contractual norms and minimum information disclosure requirements in NFT transactions. Furthermore, comprehensive digital literacy initiatives and consumer awareness programs are essential to mitigate emerging risks while optimizing the inclusive potential of Web3 technologies. These policy measures are crucial to safeguarding consumer rights and fostering sustainable trust within the evolving digital marketing ecosystem through 2025 and beyond.