Why Take Action Now?
The AI Act has major impact on the retail & e-commerce sector
August 2025
First obligations come into effect — biometric systems in stores will be banned or strictly regulated
Biometrics = Banned or High-risk
Facial recognition in stores is almost always prohibited under the AI Act
Fines up to €35 million
Or 7% of global annual turnover — regulators will enforce consumer protection
Transparency Obligation
Consumers must know when they are interacting with AI or being assessed by AI
High-risk AI in Retail & E-commerce
These AI applications fall under strict AI Act requirements (Annex III)
Biometric Identification
Facial recognition, emotion recognition and behavioural analysis in physical stores — largely prohibited under the AI Act.
Credit & Customer Assessment
AI systems that assess customers for buy-now-pay-later, return policies or customer scoring — high-risk when impacting access.
Price Discrimination & Dynamic Pricing
Algorithms that personalise prices based on customer profiles — transparency obligations and non-discrimination requirements.
Recommendation Systems
AI that makes product recommendations, personalises content or influences search results — transparency obligations for online platforms.
Specific Challenges for Retail & E-commerce
The AI Act brings unique compliance questions for the retail sector
Navigating the Biometrics Ban
Where is the line between prohibited facial recognition and permitted security? How do you implement age verification compliantly?
Transparency in Personalisation
How do you inform customers about AI-driven recommendations and pricing without disrupting the user experience?
DSA and AI Act Overlap
Online platforms fall under both the Digital Services Act and the AI Act. How do you combine both compliance obligations?
Cross-border E-commerce
Different EU countries, different interpretations. How do you ensure compliance across all of Europe?
Third-party AI in Platforms
Marketplace sellers use their own AI tools. Are you as a platform responsible for their AI systems?
Consumer Rights & Complaints
Customers have the right to explanation for AI decisions. How do you set up a complaints procedure for algorithms?
AI Act Compliance Roadmap
Practical steps for retailers and e-commerce businesses
AI Inventory
2-4 weeksMap all AI systems. From recommendations to pricing, from chatbots to biometrics.
Risk Classification
1-2 weeksDetermine which systems are prohibited, high-risk or limited risk. Pay attention to biometrics and customer assessment.
Gap Analysis
3-6 weeksCompare current transparency and documentation with AI Act and DSA requirements.
Remediation
3-12 monthsImplement transparency labels, customer information, bias testing and human oversight processes.
Ongoing Monitoring
OngoingSet up processes for continuous monitoring of AI performance and consumer complaints.
What Makes Retail AI Different?
Sector-specific considerations
Biometrics Restrictions
Retail is one of the few sectors where certain AI applications are directly prohibited
Consumer-centric
AI Act and consumer legislation reinforce each other — transparency is central
Platform Responsibility
E-commerce platforms have additional obligations as gatekeepers under DSA and AI Act
Data-intensive
Retail AI processes enormous amounts of personal data — GDPR and AI Act obligations stack