Digital Fairness Act: EU cracks down on hidden advertising and misleading tactics
The European Commission is proposing stricter rules to protect online consumers, banning manipulative tactics and requiring greater transparency
from our correspondent Beda Romano
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BRUSSELS – In the wake of recent measures all aimed at regulating the digital single market, the European Commission today, Wednesday 11 November, presented a new legislative proposal, the Digital Fairness Act, this time focused on protecting online consumers. The initiative comes against an international backdrop increasingly characterised by trends that are, in some respects, contradictory, ranging from libertarian deregulation to freedom-stifling regulation.
“Shopping has never been so convenient, but convenience must never come at the expense of fairness,” explained the Commissioner for Justice, Michael McGrath of Ireland. “ “Strong consumer protection is the foundation of competitiveness. Whether shopping online or in a physical shop, consumers deserve the same high level of protection (...) We are not making it harder to do business; we are making it harder to do business unfairly.”
The legislation introduces a ban on sales tactics that effectively conceal the manipulation of consumers (known in English as dark patterns). A typical example is where the seller claims that the product in question is almost out of stock. Furthermore, when prices change over time and in response to demand (a typical example being concert tickets), the organiser must specify both the current price and the maximum price.
In apps, European consumers will have the right to opt out of notifications relating to commercial offers, which tend to lead to impulse buying. So-called influencers will be required to disclose from the outset their commercial interests, with a particular focus on protecting minors. The legislative proposal also introduces rules making it easier for consumers to cancel contracts that are automatically renewed.
Regulations aimed at greater transparency and competition will enable consumers to save up to 13.7 billion euros a year – according to Brussels’ estimates. The European Commission has also presented an update to the 2017 regulation on consumer protection. Among other things, in the digital sphere, Brussels will be able to investigate pan-European cases and impose fines of up to 6 per cent of the turnover of the company involved.
