Illusory ownership in the metaverse: the impact of platform contractual provisions on user rights

Abstract

This article explores the concept of digital ownership in the metaverse, focusing on how contractual provisions in platform agreements create an illusory sense of ownership for users. By examining leading metaverse platforms like Decentraland, Illuvium, and The Sandbox, the study reveals that while non-fungible tokens (NFTs) provide transaction records, actual control over digital assets remains with the platform. This contractual control enables platforms to limit user access, modify services, and exclude liability, often contradicting consumer protection laws such as the UK Consumer Rights Act 2015 and the EU Unfair Terms Directive. The article suggests that such practices raise significant legal and ethical concerns, advocating for revised regulatory frameworks and equitable contractual terms to safeguard user rights in virtual environments. This study contributes to ongoing discussions about digital ownership, emphasising the need for transparency, fairness, and enforceable user rights in the evolving metaverse.