European Union

European Commission proposes Digital Fairness Act targeting manipulative online practices

The proposed law would ban specific website and app designs and add consumer rights for online businesses, with fines up to 6% of global turnover.

Photo: Politico Europe

What happened

The European Commission presented a proposal on Wednesday for a new law called the Digital Fairness Act. Politico Europe+1 The proposal would ban ten manipulative website and app designs outright, including false claims that stock is running low and pre-ticked add-ons. Euronews It would bar loot boxes and pay-to-win features for children in video games and require a terminate the contract button for online subscriptions. Euronews The measures would let people switch off online features that encourage compulsive or excessive use, with the Commission able to fine companies up to 6% of their global turnover. Bloomberg+1

Around it

The law targets practices such as dynamic pricing that changes ticket prices based on demand, cumbersome subscription cancellation processes and customer service handled entirely by automated systems. Politico Europe The Commission's impact assessment estimates the rules would spare consumers 88.4 billion euros in financial losses between 2025 and 2035. Euronews Industry leaders have pushed back on the potential new rules since the Commission began considering a revision of consumer law. Politico Europe

Sources

  1. Politico EuropeBrussels takes on the evils of online commerce (opens in a new tab)
  2. BloombergEU Targets Social Media Addiction and Online ‘Dark Patterns' (opens in a new tab)
  3. EuronewsEU to blacklist ten online design 'traps', leaked draft shows (opens in a new tab)

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