Consumer Privacy in Online Retail Supply Chains.

This article analyzes the impact of the General Data Protection Regulation (GDPR) on online retail supply chains, focusing on the interactions among a retailer, a supplier, and consumers. It distinguishes between upside data utilization (using consumer data to improve services) and downside data exploitation (monetizing consumer data, often at consumers' privacy expense). The study finds that while GDPR aims to protect consumer privacy by giving consumers control over data usage, it can unintentionally reduce consumer surplus and harm all parties in the supply chain—retailer, supplier, and consumers—especially when consumer valuation of products is high, resulting in a "triple-lose" outcome. The paper highlights that GDPR consistently benefits a single integrated firm but may decrease welfare in supply chains due to strategic pricing and data collection decisions influenced by upstream supplier pressures. These findings underscore the complexity of privacy regulation effects in multi-tiered retail environments and suggest that policy evaluations should consider specific business contexts.