The European Union executive branch introduced a new legislative framework on Wednesday, formally titled the Digital Fairness Act, designed to modernize consumer protection standards in the digital economy. According to Hespress English, the proposal targets specific online behaviors, including influencer marketing strategies and platform design elements that may encourage excessive usage. The initiative is part of a broader effort to address perceived gaps in existing digital regulations, which already cover data protection and artificial intelligence.
The draft legislation outlines several specific mechanisms to alter how online platforms interact with users. It proposes a ban on dark patterns, defined as interface designs that trick users into unwanted purchases or settings. Additionally, the rules would allow users to disable addictive features, such as infinite scrolling or automatic video playback. For influencer marketing, brands would be required to use clear labels, such as advertisement tags, to distinguish sponsored content from organic posts. The act also addresses gaming mechanics, proposing bans on pay-to-win features for minors and requiring virtual currencies to display their real-world value.
Financial incentives and penalties form a central component of the proposal. The European Commission stated that the new measures could save consumers up to 13.7 billion euros annually. To enforce compliance, the commission would gain the power to impose fines of up to six percent of a company’s annual turnover in large-scale cases. This enforcement power would be triggered when an issue affects two-thirds of the EU’s population. Michael McGrath, the EU consumer protection chief, noted that consumers need to trust that displayed prices are accurate and that they are not manipulated into overspending.
The proposal also addresses pricing transparency by banning drip pricing, a practice where fees are hidden until the final checkout stage. However, dynamic pricing, where costs fluctuate based on demand, will remain permitted, provided ticket sellers offer greater transparency regarding availability. The legislation is currently in the negotiation phase with EU member states and the European Parliament. Agustin Reyna of the European Consumer Organisation described the proposal as a necessary tool to restore consumer control over their time and money online. Laura Ballarin Cereza, a Spanish EU lawmaker, added that the act aims to fill gaps in consumer law, serving as a safety net for both children and adults in a safer online space.