EU Proposes New Rules Against Harmful Digital Practices
The European Commission has proposed a Digital Fairness Act to update consumer protections for the digital economy. The plan would apply across the EU’s 27 member states and targets practices such as misleading design, difficult-to-cancel subscriptions and pricing that is unclear to consumers.
The proposal would let consumers switch off features such as autoplay and app streaks, and require simpler subscription cancellations and access to human customer service. It would also require influencers to disclose paid promotions and restrict personalized advertising or pricing aimed at minors or based on sensitive data.
For games, the rules would target practices that encourage minors to overspend, including loot boxes and persistent prompts. Ticket sellers would face requirements for clear pricing and limits on dynamic pricing for cultural and sports events.
The Commission says the proposed law is intended to complement existing EU rules, including the Digital Services Act, Digital Markets Act and AI Act. Consumer Protection Commissioner Michael McGrath said the changes would help ensure companies win customers through what they offer, rather than by exploiting consumers.
The proposal would strengthen EU-level enforcement. The Commission could investigate cases with large-scale consumer impact and impose fines of up to 6 percent of a company’s global yearly revenue. Companies based outside the EU would have to name an in-country legal contact to work with authorities. The plan also aims to improve coordination between the Commission and member states.
EU Moves to Curb Digital Tricks and Protect Consumers
The EU’s proposed Digital Fairness Act puts consumer protection at the center of the digital economy, seeking to curb tactics that can steer people into choices they would not otherwise make. It would ban dark patterns, make subscriptions easier to cancel and let users turn off features such as autoplay and app streaks.
The proposal would also address risks for children and other consumers. It would restrict personalized ads and prices aimed at minors or based on sensitive data, and target game practices such as loot boxes and persistent prompts that encourage minors to spend more. Influencers would have to disclose paid promotions.
Ticket sellers would face requirements for transparent pricing and limits on dynamic pricing for cultural and sports events. The rules would also give consumers a right to reach human customer service.
Consumer Protection Commissioner Michael McGrath said businesses should win through the quality and value of what they offer, not their ability to exploit consumers. The proposal would give the Commission direct authority to investigate cases with large-scale impact and fine companies up to 6 percent of global yearly revenue. That stronger oversight is intended to prevent harmful practices from slipping through gaps between existing EU laws and uneven enforcement across member states.
The Commission says the act would complement the bloc’s Digital Services Act, Digital Markets Act and AI Act. Firms from outside the EU would need an in-country legal contact to work with EU authorities.
EU Seeks Broader Power Over Digital Businesses
The European Commission’s proposed Digital Fairness Act would expand the bloc’s reach into online services, from app design and subscriptions to advertising and ticket prices. Companies that breach the rules could be penalized by as much as 6 percent of their global yearly revenue, while the Commission would gain direct authority to investigate cases with large-scale impact.
The proposal would ban dark patterns, require simpler subscription cancellations and allow consumers to turn off features such as autoplay and streaks. It would also restrict personalized ads and pricing aimed at minors or based on sensitive data, require influencers to disclose paid promotions and target game features such as loot boxes and persistent prompts.
Ticket sellers would have to provide clear pricing, and the proposal would curb dynamic pricing for cultural and sports events. Businesses from outside the EU would need to name an in-country legal contact and work with EU authorities.
The Commission presents the plan as a way to protect consumers and make rules work consistently across the bloc. But its proposed shift toward more centralized enforcement also raises the stakes for firms operating in Europe: Brussels would be able to pursue major cases directly rather than relying only on national authorities.
The Commission says the act would fill gaps between existing digital laws rather than duplicate them. The proposal would add another layer to a regulatory framework that already includes the Digital Services Act, Digital Markets Act and AI Act.
Reported by Wired, Engadget, The Verge.
