The European Commission wants to crack down on misleading and addictive online sales techniques and has presented a proposal for the Digital Fairness Act. It includes measures targeting dark patterns, addictive design and influencer marketing.
According to the European Commission, the proposals aim to strengthen consumer protection laws and make them fit for the digital age. The EU’s executive body points out that 60 percent of European consumers shop online or purchase services online. “Whether people shop online or in a physical store, they deserve the same high level of protection”, says European Commissioner Michael McGrath.
Dark patterns
Brussels wants to take tougher action against misleading and addictive design techniques on websites and in apps. Many marketplaces and use so-called dark patterns, designed to manipulate consumers into making impulsive purchases or revealing more personal data. Examples include false scarcity claims that pressure consumers into making purchases.
Curbing addictive features
The Digital Fairness Act also aims to curb addictive design, such as persistent notifications and rewards that encourage consumers to keep clicking or spending money. These features would not be banned outright, but consumers should be able to disable them more easily.
Influencer marketing
Influencer marketing is another focus of the Digital Fairness Act. Consumers should know when influencers are being paid to promote products.
Commercial messages must be clearly identifiable
Brussels particularly wants to better protect minors against misleading advertising and commercial influence. The Commission wants to put an end to personalised advertising and pricing aimed at this group.
Stronger enforcement
The proposals go beyond the Digital Fairness Act. The European Commission also wants to amend existing rules to enable tougher action against companies that violate consumer rights. Brussels aims to gain the power to investigate large-scale infringements directly and impose fines of up to 6 percent of companies’ global annual turnover.
Fines of up to 6% of global annual turnover
Under the plans, companies based outside the European Union would also be required to appoint a legal representative in the EU, making it easier for authorities to enforce consumer protection rules.
Next steps
The proposals were presented yesterday and still need to be approved by the European Parliament and the EU member states. According to legal experts, it could take at least another two years before the new rules enter into force.
