The UK's Competition and Markets Authority (CMA) has warned that algorithms used by online marketplaces could prompt price rises for goods and services.
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The industry watchdog is currently investigating businesses that use technology on selling platforms, warning that search results could lead to shoppers being directed towards specific brands.
Kate Brand, the CMAs director of science, said: "Algorithms play an important role online but, if not used responsibly, can potentially do a tremendous amount of harm to consumers and businesses.
"Assessing this harm is the first step towards being able to ensure consumers are protected, and complements our wider work in digital markets to promote greater competition and innovation online."
The CMA has turned to academics and industry as part of its investigation.
The watchdog said in a statement: "The majority of algorithms used by private firms online are currently subject to little or no regulatory oversight, and the research concludes that more monitoring and action is required by regulators."
Elsewhere, Rocio Concha - director of policy and advocacy at Which?, the consumer group - has warned of the dangers of fake reviews.
Concha said: "Algorithms can help consumers find suitable products and services as well as good deals, but can also be used to track and monitor behaviours in ways they are unaware of, leading to them being manipulated or misled - either accidentally or by design."