The knotty problem of applying real-world laws to VR and AR

(Credit: Unsplash)

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Karen Silverman, Founder and Chief Executive Officer, The Cantellus Group & Thomas A. Campbell, Founder and CEO, FutureGrasp


  • Virtual and augmented reality technologies are evolving fast – and our legal systems are unprepared.
  • Here’s a guide to the challenges this poses, along with the questions we need to start asking.

As we continue to grapple with governance imperatives for artificial intelligence (AI), the emergence and acceleration of augmented and virtual reality (AR/VR, also known as XR) presents a related and important governance frontier – raising novel and complex challenges for which we, and our legal system, are ill-prepared.

Historically, we have let societal, judicial and legislative forces produce rules for new technologies. We are slow to innovate legal frameworks for new technologies that require new ways of thinking. XR is outpacing this watch-and-wait approach, however, precisely because of its whole-world and dimension-shifting capabilities.

XR technology is immersive, increasingly realistic, and evolving fast:

  • A recent review by CNET demonstrates how far the field has progressed; for example, all VR systems on the market today offer not only visual digital immersion, but also haptic sensors that enable one to detect and grab objects within virtual environments.
  • Market researchers forecast AR growth from $15.3 billion in 2020 to $77 billion by 2025, and VR growth from $6.1 billion in 2020 to $20.9 billion by 2025.
  • In 2021, nearly 60 million Americans will use VR, and 93.3 million will use AR at least once a month.
  • According to the Washington Post, ‘Global spending on AR and VR is expected to jump more than sixfold to $72.8 billion in 2024 from about $12 billion in 2020 as more companies adopt the technology following the pandemic, according to market research firm IDC’.
  • Almost a fifth of Facebook employees now work on XR; Facebook’s CTO recently stated that most of Facebook’s users ( around 2.7 billion people) will be in VR within only a few years. Facebook recently announced its release of Horizon Workrooms, a VR service that enables users to customize avatars and host interactive meetings in virtual conference rooms.

As more users interact in and with XR environments, commercial rules are being formed through supply contracts, terms of use, and risk and rights allocations – well before we fully understand how XR will impact individuals and organizations, the types of disputes they produce, or the challenges they present to social and judicial systems.

The US relies heavily on litigation to establish functional boundaries on behaviours, resolve disputes and interpret laws. This means that new enforceable standards (a) take a long time to develop; (b) tend to trail the emergence of societal norms and expectations; and (c) tend to focus on edge cases that (d) are decided by judges and juries with differing levels of expertise in this technology. It’s also worth noting that in the US alone, more than 85,000 local government districts enforce laws governing everyday and extraordinary conduct – with many differences one to the next.

Relatedly, the public frequently expects more expansive protections from this iterative legal system than it gets. This gulf – between what the public expects and what the law actually does – shows up in frustrated calls for overly expansive use of the antitrust laws, or for the assertion of broad privacy rights, more strenuous efforts to curb stalking, public corruption, and untrue, hateful and harassing speech (often directly threatening women) online. The law is cautious in regulating offensive conduct short of direct physical or financial harm (and enforcement is notoriously uneven). If our experience with the internet is any guide, relying on litigation – or norms and manners – to govern our XR experiences will prove to be disappointing and ineffective.

Image: Statista

As we think about what will govern XR experiences, we must recognize that all behaviours, assets and disputes encountered in real life will also occur in XR, along with dazzling new dimensions of conduct and capabilities (flying! transforming! invisibility!). This provokes many questions beyond those we are already struggling with in online settings. A few to consider:

  • If AR is by definition designed to interact with and augment the natural world, will existing rules better correlate there than in more self-contained VR environments?
  • When and how do laws and regulations (such as indecent exposure, fraud or assault) apply to XR conduct that is first governed by contract on a private platform? Is it reasonable to expect users to enforce their contract rights, or look to the platform provider to police activity?
  • Are there public interest limits to what rights can be contracted away? Are consents adequate? What does that mean in the context of a virtual environment where users may seek out unusual or novel experiences?
  • Which categories of user or platform conduct are appropriate for state law enforcement (civil or criminal)? How and when will real-world law enforcement reach conduct that occurs entirely in a virtual world? How will we ensure social justice and even-handed enforcement?
  • Do the same rules apply when the XR conduct has direct, real-world effects (like causing a car crash or embezzling money, for example) or less physical effects (such as causing real emotional distress, attention disorder or a riot)?
  • Where does the conduct take place, for jurisdictional purposes?
  • What is the evidentiary value of one’s statements and conduct in VR? What is the admissibility to establish patterns, intent or character?
  • What are reasonable or effective remedies for actionable conduct in XR?
  • How will we handle joint liability? Intellectual property? Wealth and tax? Insurance? Defamation? Unauthorized uses or modifications of one’s likeness? One’s voice? When is tech ‘enhancement’ fair use, or too much?
  • Should any essential rules apply in virtual environments – for instance, to protect human rights, or vulnerable groups – and how will they be developed or enforced, and by whom?
  • What are the protections and limits on derivative uses of the truly vast quantity of personal data that will be generated every second of every day – data that will be very intimate and specific, and easily used as a personal identifier?

These and many other novel questions will challenge society and our legal system as we encounter behaviours and outcomes in XR for which the courts – alone, or at all – do not offer adequate process or redress. Legal scholars are beginning to unpack these issues, but there is a very long way to go. As one character observes in the sci-fi novel Ready Player Two: “And sometimes when you think you’ve reached the end of the game, suddenly you find yourself standing at the start of a whole new level. A level you’ve never seen before.”


Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

This article is published in association with United Nations.

‘Connect the dots’ between street protests and global turmoil, urges Guterres

This article is published in association with United Nations. The international community must combat inequality and stop wars from expanding to ensure a safer world for all, the UN Secretary-General said on Thursday. Speaking to reporters in New York ahead of a visit to Egypt, António Guterres addressed growing public discontent in Europe and beyond, […]
© SOS Méditerranée/Anthony Jean Up to $500 million was paid in migrant smuggling fees on sea routes to Europe in 2025, according to new UN estimates.

Migrants paid up to $500 million in smuggling fees on European sea routes

This article is published in association with United Nations. The price tag for smuggling on European sea routes reached up to half a billion dollars last year, the UN Office on Drugs and Crime (UNODC) and the UN migration office, IOM, reported on Wednesday. Key points Almost half of migrants trying to get smuggled into […]
The author of this article explored other courses in different fields, but it was in medicine that she found her place. From the beginning of her studies, Valéria discovered in medical practice more than just a career: she found her vocation when she realized that caring for others also gave meaning to her own life. Driven by a genuine desire to help, the student stood out as a Teaching Assistant in Public Health, strengthening her humanized perspective. Today, she is part of the coordinating board of IFMSA UNEX MED, working in the Human Rights and Peace (SCORP) area, where she transforms empathy into action and social commitment into real impact.

Global warming will breach 1.5°C – but deep, fast cuts can still bring it back

This article is published in association with United Nations. With global temperature rise set to exceed 1.5°C above pre-industrial levels, countries “must pull out all the stops” and urgently cut emissions to minimize the overshoot and return to the internationally agreed threshold by the end of this century. The recommendation comes in the Emissions Gap […]
© Agricultural Development Association – PARC A farmer in the West Bank harvest olives in October 2025. (file)

‘Season of fear’: Escalating Israeli attacks on West Bank olive farmers, deadly strikes on Gaza

This article is published in association with United Nations. Israeli attacks on war-torn Gaza over the weekend killed at least six Palestinians, including children, despite a year-old ceasefire agreement. Meanwhile, in the occupied West Bank, settler violence continued through the ongoing olive harvest, with UN independent experts on Monday urging Israel to protect Palestinian farmers. […]
This article is published in association with United Nations.

COP17: The world has a plan to save nature. Is it working?

This article is published in association with United Nations. The UN Secretary-General has called for an end to the “war on nature”. On Monday, governments gathering in Yerevan, Armenia, will have to confront a more practical question: are they doing enough to win the peace and put the world’s biodiversity goals back on track? COP17, […]
© WHO A large-scale combined missile and drone strike hit Kyiv's Solomianskyi district on August 20, 2026.

Ukraine: Critical health supplies destroyed in ongoing Russian attacks

This article is published in association with United Nations. Ongoing and deadly Russian attacks across Ukraine are causing serious healthcare disruption, with more than $1.5 million-worth of medicines and supplies destroyed in four separate strikes on warehouses used by the UN there since July. According to the World Health Organization (WHO), 21 warehouses have been […]
© UNICEF/Niccolò Corti A child sits alone, praying, at a reception centre for migrants in Lampedusa, Italy.

World News in Brief: West African migrant crossings, Argentina takes UK to maritime tribunal, farming in Gaza, mental health update

This article is published in association with United Nations. Fewer people from West Africa are reaching Europe by sea, but the journey has not become safer, the UN migration agency (IOM) said on Tuesday. Arrivals from Mali, Senegal, Guinea and The Gambia fell by 59 per cent in the first half of 2026 compared with […]
© UN Ukraine The aftermath of a drone attack in a residential area in Kyiv on 12 October.

Ukraine: Residents killed and dozens injured in attacks on Kharkiv and Kyiv

This article is published in association with United Nations. Russian attacks in recent days on on Ukraine’s two largest cities have again killed and injured civilians, damaged homes and civilian infrastructure, the UN aid coordination office (OCHA) said on Tuesday. Aid workers and rescuers were on the ground in Kyiv and Kharkiv following aerial strikes that […]
© IOM The war in Sudan has created extreme levels of displacement, both internally and across Sudan’s borders.

‘Efficiency has limits’: UNHCR chief warns refugee protection is buckling under cuts

This article is published in association with United Nations. The money is running out faster than needs are growing: with 117 million men, women and children now forced from their homes, the UN refugee agency (UNHCR) has received just $3 billion of the $8.5 billion it needs this year – and its chief, Barham Salih, warns […]
© UNOCHA/Ramatoulaye Moussa Maz A woman walks through a camp for displaced people in Ituri Province in eastern DR Congo, where decades of violence have impacted millions, creating a humanitarian emergency.

Rise in poverty is ‘a wake-up call for the world’, UN development chief says

This article is published in association with United Nations. The number of people living in “multidimensional” poverty has risen for the first time in 15 years, reaching 1.2 billion, as families struggle to meet their basic needs.  The finding comes in the 2026 update of the global Multidimensional Poverty Index (MPI) published by the United Nations […]
© UNDP Nidaa with the chickens and ducks she raises in Gaza.

Sustaining livelihoods amid crisis in Gaza

This article is published in association with United Nations. Nidaa, Hanaa and Hanin have different stories, but share a common thread: the determination to build something of their own and keep it going despite extraordinary challenges facing them in war-ravaged Gaza. Following the devastation of the past three years, productive capacity in Gaza has been severely […]
© UNICEF/Oleksii Filippov A firefighter works on the balcony of a wrecked building in Kyiv, Ukraine.

World News in Brief: Russian attacks continue in Ukraine, Gazans shelter in flood-prone areas, keeping sight of eye health

This article is published in association with United Nations. UN human rights chief Volker Türk said on Thursday he was appalled by a wave of attacks that have killed civilians across Ukraine over the past four days.  They include a strike on two public buses in Kramatorsk on Thursday, that left at least 30 civilians dead, […]
This article is published in association with United Nations.

Ukraine: UN condemns latest attacks and calls for civilian protection

This article is published in association with United Nations. The UN Humanitarian Coordinator for Ukraine on Wednesday called for an end to attacks against civilians following further overnight strikes by Russian forces that reportedly killed at least 19 in the Chernihiv Region. Among the dead in Pryluky were five children, three of them babies, according to the […]
© UNICEF-SoP/Crickx People walk down a dusty road in the West Bank carrying belongings.

Israeli demolition in East Jerusalem displaces 69 Palestinians

This article is published in association with United Nations. Sixty-nine Palestinians – more than half of them children – were displaced on Tuesday after Israeli authorities green lit the demolition of their residential building in the At Tur area of East Jerusalem, the UN aid coordination office (OCHA) has reported. This is the highest number of […]
This article is published in association with United Nations.

‘The clock on AI regulation is ticking’, warns UN rights chief

This article is published in association with United Nations. The world is running out of time to put guardrails on artificial intelligence, UN High Commissioner for Human Rights Volker Türk warned Monday, as a “ruthless race” between companies and countries raises concerns about human safety and even humanity’s survival. Speaking in the UK at an AI […]
© UNOCHA/Alina Basiuk A school in Ukraine lies in ruins after being hit by a missile.

Ukraine war ‘a human rights catastrophe’ that must end, says Türk

This article is published in association with United Nations. Human Rights The war in Ukraine is a human rights catastrophe that is “growing and intensifying by the week” and threatening an even greater disaster across the region, UN High Commissioner for Human Rights Volker Türk said on Friday. Addressing the Human Rights Council in Geneva, Mr. […]
UN News Massive tent settlement of displaced residents extends along the damaged Gaza coastline.

Palestinians yearn for ‘a return to normal life’, says top Middle East peace envoy

This article is published in association with United Nations. The UN is continuing efforts to support Palestinians in Gaza amid major challenges to humanitarian access, reconstruction and the restoration of essential services, according to Ramiz Alakbarov, Acting UN Special Coordinator for the Middle East Peace Process. Speaking to UN News on the margins of the UN […]
©UNIFIL/Tilak Pokharel UNIFIL personnel distribute food kits to displaced families in Saida, Lebanon (file).

Lebanon: One in five children goes to bed hungry, says UNICEF

This article is published in association with United Nations. Four in five households in Lebanon struggle to afford basic necessities today, with children increasingly going without food, missing school and being pushed into work as conflict compounds years of economic crisis. “I wanted to buy clothes for my children, but I could not. I also wanted […]

World News in Brief: Deadly Myanmar strikes as Malaysia begins deportations, new emergency funding released, Gaza and West Bank update

The UN chief on Tuesday strongly condemned an airstrike that reportedly killed at least 50 people at a market in Myanmar’s Rakhine state and called for those responsible to be held to account. Forces from the military junta reportedly hit Kyauktaw township around midday on Monday, when the market’s more than 200 shops were busy […]

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com