Strengthening Consumer Protection in Online Marketplaces Towards Digital Governance and Cyber Law

Abstract

The rapid expansion of online marketplaces has significantly transformed the global digital economy by facilitating efficient commercial transactions and enhancing market accessibility. However, this growth has also intensified cyber-related threats, including online fraud, identity theft, data breaches, deceptive marketing practices, and unauthorized exploitation of consumer data. These challenges underscore the urgent need for robust digital governance and effective cyber law frameworks to strengthen consumer protection within digital commerce ecosystems. This study aims to examine the influence of digital governance and cyber law compliance on consumer protection and their subsequent impact on consumer trust in online marketplaces. The proposed conceptual model positions Digital Governance and Cyber Law Compliance as independent variables, Consumer Protection as a mediating variable, and Consumer Trust as the dependent variable. Grounded in Digital Governance Theory, Consumer Protection Theory, Institutional Theory, and Trust Theory, the study proposes that transparent digital governance, regulatory compliance, and effective legal enforcement enhance consumer protection, thereby fostering greater consumer trust in online marketplace platforms. A quantitative research design employing a cross-sectional survey will be adopted, targeting active users of online marketplaces. Data will be analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate both direct and indirect relationships among the proposed constructs. The expected findings will contribute to the literature by integrating governance, legal, and consumer behavior perspectives into a comprehensive framework for digital marketplace governance. From a practical standpoint, the study offers strategic implications for policymakers, digital platform providers, and regulatory authorities in designing governance mechanisms and cyber legal policies that promote secure, trustworthy, and sustainable online marketplace ecosystems.