Companies risk fines of 6% global turnover for unfair digital trade practices, EU draft law shows
The draft would also give consumers new controls over subscriptions, autoplay and AI shopping agents, while letting regulators fine companies up to 6% of global turnover.
- 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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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
On Wednesday, the European Commission will unveil its "Digital fairness act" bill to combat abuses on the Internet, aimed at strictly regulating the activity of influencers, banishing deceptive interfaces and curbing the addictive mechanisms of platforms. ...
The European Union is preparing new rules to combat the methods by which websites, apps and online shops cause users to spend more money or accept services they do not want. A European Commission project, consulted by Euronews and presented in the international press, provides for the prohibition of ten types of manipulative design, known as "dark patterns".
EU to blacklist ten online design 'traps', leaked draft shows
From fake notifications to free trials that quietly turn into paid subscriptions, the Commission’s long-awaited Digital Fairness Act would name and ban the traps that keep users clicking, spending and subscribed.
The European Commission plans to present on 11 November a project that includes penalties of up to 6% of global annual turnover for companies engaging in unfair digital practices. The draft also sets limits to personalized advertising aimed at children, greater transparency on dynamic prices and options for deactivating addictive functions.
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