DOI: 10.11118/978-80-7701-047-4-0076

CONSUMER PROTECTION MECHANISMS IN EU REGULATORY SANDBOXES

Jana Janderová¹

¹ Institute of Administrative and Social Sciences, Faculty of Economics and Administration, University of Pardubice, Studentská 84, 532 10 Pardubice, Czech Republic

Regulatory sandboxes have emerged as pivotal tools in fostering innovation within the financial and technological sectors. This article explores the concept of regulatory sandboxes, focusing on their legal regulation under European Union (EU) law and the critical role of regulators in ensuring consumer protection. The EU’s approach to regulatory sandboxes is characterized by a flexible yet robust framework that allows for the controlled testing of innovative products and services. This framework aims to balance the need for innovation with the imperative of safeguarding consumer interests. The article delves into the legal foundations of regulatory sandboxes within the EU, examining key legislative instruments and policy initiatives that support their implementation. It highlights the European Commission’s efforts to harmonize the AI sandbox regulations across member states, promoting a cohesive and efficient regulatory environment. A significant focus is placed on consumer protection, detailing how regulators ought to implement safeguards to mitigate risks associated with new technologies. In conclusion, the article argues that regulatory sandboxes, when effectively regulated and supervised, can serve as powerful catalysts for innovation while maintaining high standards of consumer protection.

Keywords: regulatory sandbox, consumer protection, FinTech, innovation, artificial intelligence, EU law, regulators

pages: 76-86, online: 2025