Companies risk fines of 6% global turnover for unfair digital trade practices, EU draft law shows
The proposal would force clearer pricing, ban manipulative design and impose fines of up to 6% of global turnover, according to a draft seen by Reuters.
- On Wednesday, the European Commission will present the Digital Fairness Act, targeting manipulative online designs and establishing rules for AI shopping agents. The proposal seeks to replace older consumer protection directives with stricter, standardized regulations.
- Replacing the 2005 Unfair Commercial Practices Directive, the draft regulation applies directly across all 27 member states. It targets 'dark patterns' deemed unfair in all circumstances, removing the need for authorities to prove harm case-by-case.
- Violating these rules could cost companies up to 6% of global turnover, as the DFA bans false scarcity, pre-ticked add-ons, and paid loot boxes for minors. The regulation takes effect 12 months after entering into force.
- Consumer Commissioner Michael McGrath described the law as "both a pro-consumer and pro-business initiative" to ease administrative burdens. Germany argues existing directives should be amended rather than creating new horizontal legislation.
- While the Commission estimates the rules could spare consumers €13.7 billion in benefits, Finance Watch official Peter Norwood argued the proposals "has not yet been sufficiently demonstrated" to protect consumers in financial services.
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The European Commission plans to ban ten manipulative practices used by websites and apps to encourage consumers to spend more, continue subscriptions or change their minds, according to a draft of the Digital Justice Act, obtained by Euronews. The proposal, which is expected to be presented on Wednesday, aims to ban practices such as false out-of-stock notifications, pre-selected additional options and persistent pop-ups asking users to change …
Protothema
PentapostagmaThe EU is planning new measures to limit addictive features in social media and AI chatbots - Tech giants are in the spotlight, with strict obligations and hefty fines - Announcements on Wednesday 11/11
Companies risk fines of 6% global turnover for unfair digital trade practices, EU draft law shows
Companies found guilty of using unfair digital trade practices to push people to buy more or target children with personalised advertising risk fines of as much as 6% of annual global turnover, according to a European Commission draft law seen
EU to crack down on influencer marketing
The European Union already has multiple laws covering data protection, artificial intelligence and online content. But Brussels and campaigners argue there are gaps that leave consumers exposed to harmful digital practices. The new law known as the "Digital Fairness Act" -- due to be unveiled by consumer protection chief Michael McGrath on Wednesday -- will fill those gaps, it says. According to the draft documents, the EU will ban deceptive pra…
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