Consumer Protection and Compliance in 2026: A New Era of Accountability

Rapid-fire AI adoption, new enforcement priorities, and heightened litigation risk create new hurdles for corporate compliance teams

2026 will redefine how companies engage with consumers as artificial intelligence (AI) adoption, user experience standards, and regulatory shifts create a new era of accountability—one that rewards transparency and punishes complacency.

Success will depend on whether corporate compliance leaders can meet complexity with clarity and innovation with integrity.

Below we provide key areas to keep top of mind.

AI Goes Mainstream—and Gets Regulated

AI is fast becoming the infrastructure of modern consumer interaction, mediating everything from marketing touchpoints to customer service. With that ubiquity, however, comes increased scrutiny.

For instance, Colorado’s AI act, effective February 2026, will be the first US law requiring companies that deploy “high-risk” AI systems to assess potential harms, document data sources, and disclose when AI makes consequential decisions. Relatedly, the European Union’s AI Act will go into full effect beginning in August 2026 and require official risk management systems, technical documentation, conformity assessments, human oversight, and other compliance frameworks to be in place.

Emerging Risk: AI-driven voice and synthetic media fraud are on the rise, with deepfake audio already used to impersonate executives and trigger fraudulent transfers—prompting state attorneys general to warn companies about AI-driven scams and child safety with AI chatbots.

Junk Fees, Dark Patterns, and Subscription Programs Under Pressure

Enforcement efforts on “junk fees” and manipulative user interfaces are intensifying. The Federal Trade Commission’s case against this year underscored that point: the company recently agreed to a $2.5 billion settlement after regulators accused it of using deceptive interfaces to enroll consumers in Prime and make cancellation intentionally difficult.

In fact, there is increasing international alignment in how governments and regulators think about user interface design elements, including pre-checkout total price disclosure, one-click cancellations, and clear auto-renewal terms. As a result, companies that rely on complex design elements or provide ambiguous disclosures will find those tactics scrutinized by regulators.

Emerging Risk: AI-generated consumer promises remain a legal gray area, as regulators weigh whether statements made by automated bots—such as refunds or policy misstatements—should bind companies in the same way as human representations.

Data Privacy: Expect Heightened Regulatory Focus on Kids and Teens

In the past year, regulators have redoubled their efforts around how digital products are designed for young audiences.

For example, states including California, Maryland, Utah, Texas, and Oregon have data collection and algorithmic recommendation features—imposing new age-verification requirements and mandating that online services likely to be used by minors consider the children’s best interests in product design.

Emerging Risk: Regulators are examining teen-directed features like streaks (i.e., gamified digital features that track consumer actions), loot boxes (i.e., virtual containers in video games that are acquired by players through either gameplay or real money), and endless recommendation loops for potential design harms, even when apps aren’t marketed to minors.

ESG and AI Claims Under the Microscope

Regulatory pressure on environmental, social, and governance (ESG) has become more complex and fragmented in the United States. As federal regulatory momentum has slowed—and in some cases is being reversed—state-level requirements and private stakeholder demands have increased, creating a patchwork of compliance obligations.

Consequently, greenwashing litigation has shifted toward consumer class actions. Liability has expanded beyond product claims to include product lifecycle claims like “recyclability,” as well as business practice claims like use of the term “net-zero emissions.” ESG messaging now can carry as much legal risk as it does brand upside.

Emerging Risk: Companies can expect increased scrutiny of AI claims. Consumer-facing phrases such as “AI-powered” or “bias-free” are best substantiated to avoid legal scrutiny.

Prepare for a New Era of Accountability

Given the above issues, compliance teams can start by focusing on three areas:

• Heightened focus on youth protections. Companies in the teen and youth digital space should expect intensified regulatory and consumer attention to data practices, product design, and algorithmic features that affect minors.
• Compliance complexity grows. With privacy and consumer-protection laws diverging across states and regions, global businesses will need adaptable, well-integrated frameworks that evolve with shifting legal standards.
• Litigation risk rises. Enforcement and class actions are increasing, making clear disclosures, accurate pricing, and substantiated advertising essential. Engaging experts early to evaluate consumer understanding can help mitigate exposure when disputes arise.

2026 may well represent a sea change in consumer protection and compliance. Companies that take proactive measures to prepare will not only avoid costly penalties but also gain a new competitive edge.