The European Commission has unveiled plans to stop technology companies treating their customers like gullible cash machines, with new rules targeting subscription traps, manipulative websites and addictive online services.
According to Reuters, the Digital Fairness Act, announced on 11 November, is Brussels’ latest attempt to persuade the technology industry that making money does not necessarily require tricking people into handing it over. The proposal would overhaul European consumer protection laws and give regulators additional weapons against companies whose business models depend on customers making expensive mistakes.
One target is the collection of tricks known as dark patterns, where websites use misleading buttons, confusing menus and artificial urgency to push customers into buying something. These include claims that only two products remain in stock or that an offer will disappear within minutes, even when the seller has manufactured the shortage to frighten customers into reaching for their wallets.
The Commission wants to outlaw these manipulative practices and force businesses to provide clearer information about what customers are buying. According to Brussels, around 60 per cent of Europeans buy goods or services online, but online shoppers are more than 60 per cent more likely to encounter trouble than those visiting physical shops.
Subscription services are another target. The Commission has noticed that signing up for an online service can take seconds, while escaping the arrangement sometimes requires the patience of a medieval monk and a working knowledge of corporate obstruction. The proposed rules would make cancellations easier and tackle unwanted automatic renewals and free trials that turn into paid subscriptions.
The legislation would tackle addictive design, including endless scrolling, autoplay and persistent notifications intended to keep users glued to their screens. Companies would have to give customers greater control over these features, potentially interfering with the cunning plans of platforms that measure success by how many hours of human existence they can consume.
Gaming companies could find themselves receiving unwanted attention. Brussels is concerned about loot boxes, virtual currencies and other mechanisms that encourage players to keep spending money after buying a game. The proposals include restrictions on practices that encourage excessive spending, with additional protections for children. The gaming industry has already complained that some of the suggested measures would be disproportionate and difficult to implement.
Influencers could face greater scrutiny of their lucrative arrangements with advertisers. The Commission wants clearer disclosure when a company has purchased spontaneous enthusiasm for its product. This could prove inconvenient for those internet personalities who somehow develop an overwhelming affection for whichever product is paying their bills that week.
Personalised advertising and pricing would face additional restrictions, particularly where companies exploit consumers’ vulnerabilities or target children. The rules would address businesses that use customer information to manipulate purchasing decisions, including offers designed to exploit individual circumstances.
Ticket sellers could be affected by new transparency requirements for dynamic pricing. The Commission wants companies running virtual queues to display the current price and the maximum possible price, preventing customers from discovering that the cost has climbed considerably while they waited for permission to buy something.
Brussels is proposing stronger enforcement powers through a revised Consumer Protection Cooperation Regulation. The Commission could investigate major cross-border infringements directly and impose fines reaching six per cent of a company’s worldwide annual turnover. For larger technology companies, that could create a bill far more frightening than the cost of obeying the rules.
European Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection Michael McGrath said the proposals represented the biggest overhaul of EU consumer protection rules in more than 20 years. The Commission estimates that the package could save European consumers as much as €13.7 billion annually by reducing unfair commercial practices and the money wasted on unwanted digital services.
BusinessEurope has complained that the proposals could add another layer of regulatory obligations and undermine the EU’s efforts to simplify its rules. Technology companies already face the Digital Services Act, Digital Markets Act and AI Act, and industry representatives worry that another set of Brussels regulations will increase compliance costs. Making it harder to con customers is becoming an administrative burden to poor companies who seem to have bought it all on themselves.
The legislation still needs approval from the European Parliament and EU member states, which means the technology industry has plenty of opportunities to lobby for changes before the rules become law. The Commission’s proposal, presented alongside a consumer-law simplification directive and stronger enforcement measures, will enter negotiations that could substantially alter its provisions before businesses must comply.
