EU proposal targets addictive design and deceptive online sales
The European Commission has proposed a Digital Fairness Act that would give it power to fine companies up to 6% of their annual global turnover for unfair online practices. The draft targets designs and marketing that encourage people to spend more money or time online, and sets new requirements for subscriptions, pricing and services.
For consumers, the proposal would require companies to provide an off-switch for addictive products and make influencers disclose commercial content. Ticket platforms using dynamic pricing would have to show the current fare in real time, as well as the highest possible price. Digital subscriptions and contracts would need a “simple, unambiguous cancellation option,” while free trials would require active confirmation before converting into paid plans. Customers would also have a right to reach human customer service to resolve problems.
The draft sets additional limits for minors. It would prohibit targeted advertising based on profiling and prevent influencers from directly targeting children. Online games could not offer under-18s “pay to progress” or “pay to play” features, or purchasable in-game currency.
The Commission could investigate and issue fines in large-scale cases involving breaches in at least two-thirds of EU countries. The proposal is part of the bloc’s expanding digital rulebook, which has included action on major technology companies, online platforms and AI firms over the past four years.
Digital rights advocates argue the draft relies too heavily on opt-outs instead of banning addictive design. Itxaso Domínguez de Olazábal, a policy advisor at EDRi, questioned why regulators confront harmful commercial practices in gambling, alcohol and tobacco but are reluctant to address the incentives behind addictive digital design. The European Consumer Organisation, BEUC, called the proposal a good start and urged an updated definition of “average consumer” that reflects people’s potential vulnerability online.
Industry groups, by contrast, say the draft risks duplicating existing rules, including the Digital Services Act, Digital Markets Act, AI Act and General Data Protection Regulation, as well as the recently announced Kids Act. Guido Lobrano, director general for Europe at the Information Technology Industry Council, said the proposal should address demonstrated gaps without adding complexity that brings little benefit to consumers. EU lawmakers in the European Parliament and Council must discuss the draft before it can become law.
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