The European Commission has proposed a Digital Fairness Act that would ban manipulative practices in online shopping and the use of digital services. These include false claims that a product is almost sold out, hidden terms and conditions, subscription traps, and the design of websites and apps that pushes consumers towards decisions they would not otherwise make.
The Commission defines these techniques as “dark patterns” – digital interfaces and marketing approaches that steer customers’ choices through pressure, deception or the concealment of important information. The proposal is part of a broader change to consumer protection rules, so that they apply more consistently both online and offline.
Clearer prices and an end to subscription traps
The new rules provide for greater price transparency. For purchases made with virtual currencies in apps, companies will have to display the real value of the product or service. In the case of dynamic pricing for sporting and cultural events, the current price and the highest possible price will have to be indicated, including when the customer is in a virtual queue.
The Commission is also proposing easier cancellation of digital contracts and subscriptions. Free trial periods will not be allowed to automatically turn into paid services in a way that leaves consumers without clear information or a genuine opportunity to opt out. The proposal also includes the right to contact a human being when dealing with customer service, as well as clearer rights for purchases made through artificial intelligence.
Special restrictions for minors
The proposal includes restrictions on practices that encourage excessive or impulsive spending. Consumers will be able to disable features with addictive design, including persistent prompts. For minors, a ban is envisaged on certain gambling-like mechanics, such as “pay to win” and “pay to progress” features.
Personalised advertising and pricing will also be restricted when targeted at minors or when they use sensitive personal data and consumers’ vulnerabilities. Influencers will have to clearly label commercial content, with the rules placing particular emphasis on protecting children who may perceive their recommendations as personal advice.
New enforcement powers
Alongside the Digital Fairness Act, the Commission has proposed changes to the rules governing cooperation between national consumer protection authorities. In cases of violations with a major impact on the single market, the European Commission will be able to directly investigate companies and impose fines of up to 6% of their worldwide annual turnover. Companies based outside the EU will be required to have a legal representative in the Union to assist the authorities.
According to the Commission’s assessment, the new package could reduce harm to consumers by up to €13.7 billion annually. The proposals will now be discussed by the European Parliament and the Council of the EU, meaning that the rules are not yet in force.
Michael McGrath, Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, described the initiative as “at the same time an initiative in the interests of consumers and businesses”. According to him, the aim is to reduce the administrative burden while filling gaps in consumer protection in the digital environment.
Sources: miragenews.com, euronews.com