The European Commission has presented a proposal for the Digital Fairness Act (DFA), as well as a revision of the Consumer Protection Cooperation Regulation. The aim is to ensure that consumers in the European Union enjoy an equally high level of protection online as they do offline.
The new rules seek to put an end to unfair business practices such as manipulative marketing tactics and hidden fees. It is estimated that the new measures will save EU consumers up to 13.7 billion euros annually. The Digital Fairness Act will protect consumers of all age groups who buy or search for goods and services on the internet.
The proposal bans manipulative marketing tactics, so-called "dark patterns", such as false claims that a product is almost sold out. It introduces clear and transparent pricing, particularly for purchases in virtual currencies within apps and for dynamic pricing of cultural and sporting events. Companies using virtual queues will have to display the current and maximum possible price in real time.
Particular attention in the proposal is given to curbing design features that create addiction and encourage excessive or compulsive consumption. Consumers will be given the option to switch off such features. For minors, mechanisms similar to gambling, such as "pay to win" and "pay to progress", are banned. The new rules also restrict unfair personalised ads and prices targeted at minors or based on the exploitation of sensitive data.
Influencers are required to clearly disclose commercial content. Consumers will be able to more easily cancel digital contracts and subscriptions, with the aim of ending unwanted automatic contract renewals and free trials that turn into subscription traps. Consumers are guaranteed the right to communicate with a human in customer service, and clear rights are defined when using artificial intelligence agents to purchase products on their behalf.
The Commission will under the new rules gain direct powers to investigate large-scale cases that significantly affect consumers across the single market. In such proceedings, it will be able to impose fines of up to 6 per cent of an undertaking's annual worldwide turnover. The European Parliament and the Council will debate these proposals.
