Brussels (Belgium) (AFP) – The European Union on Wednesday put forward new rules to crack down on influencer marketing, ban online features that trick Europeans, and force platforms to give users the right to turn off “addictive” features. The EU already has a raft of laws covering data protection, artificial intelligence, and online content, but Brussels and campaigners argue there are gaps that leave consumers exposed to harmful digital practices.
Now the bloc’s executive is laying out legislation for a much-needed update of consumer rules dubbed the “Digital Fairness Act” (DFA), aimed at giving Brussels the power to slap fines on companies of up to six percent of their annual turnover in large-scale cases. The financial harms to European consumers are vast: Brussels said it hopes that the new measures could help save EU consumers up to 13.7 billion euros ($15.3 billion) a year.
“At a time when households are under pressure from the cost of living, consumers must be able to trust that the prices they see are the prices they pay, and that they are not being manipulated into spending more than they intend,” EU consumer protection chief Michael McGrath said in a statement.
The proposal includes:
– A ban on “dark patterns”, the practice of tricking users into making unwanted purchases or opting in to certain settings without their knowledge.
– Allowing users to disable “addictive features” on online platforms (such as the automatic playback of videos or infinite content scrolling).
– Stricter rules on how brands promote content through influencers, demanding clear labels such as “advertisement” on posts.
– Platforms must remind consumers when a free trial period ends with details about the end date and how much it will cost to continue.
– A ban on offering minors “pay-to-win” or “pay-to-progress” features as well as “loot boxes”, and a requirement for in-game virtual currencies to show their real-world value.
– Giving consumers access to human customer service representatives if they demand, and guaranteeing that if they use an AI agent to buy a product on their behalf, they have the same rights as if they bought it themselves.
The commission will have the power to investigate and sanction companies if the issue affects two-thirds of the European Union’s 450-million-strong population, McGrath said.
The European Consumer Organisation’s Agustin Reyna said the proposal is a “much-needed tool to give consumers back control of how much time and money they spend online.” Questions have been raised over the EU’s expanding digital rulebook after Brussels unveiled plans to ban children under 13 from social media, and force companies to make platforms safe for use by minors — in addition to sweeping rules already in place under the Digital Services Act.
But Spanish EU lawmaker Laura Ballarin Cereza said the proposal aimed to make a “safer online space for everyone, children and adults alike”, adding it will “fill the gaps” as “consumer law is meant to act as a safety net.” The EU also wants users to know the full price of an order before checkout, banning a practice known as “drip pricing” where fees are hidden until the end.
However, there will be no ban on dynamic pricing — when businesses alter the price of a product or service according to demand. It garnered greater attention during the rush for concert tickets for British band Oasis’ reunion in 2025. Instead, the EU will demand greater transparency from ticket sellers, making it clear how many tickets are available at a certain price.
The proposed legislation will now need to be negotiated with EU member states and the European Parliament before it can become law.
© 2024 AFP
