Digital Ethics in Retail
A Skill-Development Approach to Practical Moral Reasoning
Methodology: Skill Development
Observe
Identify relevant facts and isolate moral claims from assumptions.
Apply
Synthesize multiple normative frameworks to evaluate the case.
Evaluate
Propose defensible resolutions based on real-world consequences.
Case Evidence: Visual Disparity
Advertised
Advertised AI Listing):
Product title: VChics Women’s Halloween Skeleton Flower Art Embroidery Cozy Knit Mini Sweater Dress Intricate 3D bone structure, realistic lace texture, professional depth-of-field lighting. Describe other features. Does AI-generated imagery materially alter consumer expectations?VChics Women’s Halloween Skeleton Flower Art Embroidery Cozy Knit Mini Sweater Dress
Case Evidence: Visual Disparity
Delivered
Delivered Actual Receipt): Low-resolution flat screen print on synthetic fabric, lack of depth, poor material quality. Note other differences. Does AI-generated imagery materially alter consumer
expectations?
Factual Assessment
Observable Facts
• Describe each image in detail (not just the
product).
• Note color saturation, light source, and textile
density.
• Avoid speculation about intent in this phase.
Process Restraint
Students must separate what they see from what they suspect is happening within the retailer’s internal supply chain.
Is it morally permissible for retailers to use AI-generated imagery that materially alters consumer expectations of a physical product?
This inquiry will be scrutinized through five distinct moral frameworks.
Axiology: The Stakeholders
Party of Interest Moral Interest The Consumer Right to accurate information and informed consent. The Retailer Property rights, profit maximization, and marketing efficiency. The Market General trust levels and legitimacy of voluntary exchange. Tech Developers Ethical deployment of AI-generation tools.
Framework 1: Deontology
Duties & Obligations
Focus on the “Duty of Truthfulness” regardless of outcomes. Categorical Imperative: Would you want this to be a universal law? Has a duty-based violation occurred independent of the sale’s outcome?
Framework 2: Utilitarianism
The Calculus of Aggregate Utility
Student Task: Do the harms of misinformation outweigh the benefits of marketing speed?
Framework 3: Virtue Ethics
Institutional Character
What kind of organization relies on this practice? What traits—vices or virtues—does the retailer exhibit in this case? Evaluate whether “Operational Cunning” has replaced “Honesty” as a core institutional value.
Framework 4: Justice
Original Position
The Veil of Ignorance
Evaluate the action from a position where you do not know which party of interest who are. Difference Principle: How are social goods distributed? Who bears the burden of the risk?
Framework 5: Libertarianism
Informed Consent
Was the consumerʼs consent fully informed, or was it manufactured through deception?
Property Rights
What is the relationship between accurate information and engaging in a voluntary exchange of some form?
Market Legitimacy
Does the action undermine the very foundation of free market transactions?
Resolution Exercise
Learning Outcome
Ethical reasoning is a practical skill. Emerging technologies shift the context of moral judgment without eliminating underlying reasoning structures.
PROPOSE
A final normative evaluation and a defensible regulatory policy option.
Citations
The Robin Report – “Ethical Issues with Generative AI in Retail Marketing” (unrealistic beauty standards, diversity washing, and watermarking proposals).therobinreport
NBC News – “Virtual supermodels made with AI spark fears in fashion workforce” (Levi’s example, labor concerns, consent issues).nbcnews
IAPP – “The ethical use of AI in advertising” and Dynamis LLP’s “AI Disclosure: Compliance Guide for Fashion Brands” (regulatory and compliance outlook for AI in
marketing).dynamisllp+1
MagicShot. (n.d.). Ethics of AI-generated product images. MagicShot. https://magicshot.ai/blog/ethics-of-ai-generated-product-images/
Inside Global Tech. (2024, July 30). FCC proposes labeling and disclosure rules for AI-generated content in political ads.
FCC Proposes Labeling and Disclosure Rules for AI-Generated Content in Political Ads
Franck, T. (2023, March 28). AI-generated Levi’s model ads spark backlash over diversity concerns. NBC News.
https://www.nbcnews.com/business/business-news/ai-models-levis-controversy-backlash-rcna77280
Dynamis LLP. (n.d.). AI disclosure laws are coming: What brands need to know now.
https://www.dynamisllp.com/knowledge/ai-disclosure-laws-are-coming-what-brands-need-to-know-now
The Business of Fashion. (2023, September 5). H&M plans to use AI models. https://www.businessoffashion.com/articles/technology/hm-plans-to-use-ai-models/
The National Law Review. (2023, November 10). What digital marketers need to know about New York’s new AI disclosure law.
https://natlawreview.com/article/what-digital-marketers-need-know-about-new-yorks-new-ai-disclosure-law
Davis, M. (2023, August 7). The ethical use of AI in advertising. International Association of Privacy Professionals (IAPP).
https://iapp.org/news/a/the-ethical-use-of-ai-in-advertising
BBC News. (2023, March 29). Levi’s uses AI-generated models in diversity push. https://www.bbc.com/news/articles/c4g5vr4vzpzo
Advertising Week. (2023, June 15). Navigating the ethics of AI visuals: Nine considerations for marketers.
https://advertisingweek.com/navigating-the-ethics-of-ai-visuals-nine-considerations-for-marketers/