The European Commission presented its Digital Fairness Act on Wednesday, November 11. Justice Commissioner Michael McGrath proposed the plan. It would let regulators fine companies up to 6% of annual global turnover for unfair online practices. 

Examples include tricks that push people to buy more and personalized ads aimed at children. The Commission says the rules would close gaps in online consumer protection. The proposal is not law yet, since the European Parliament and the Council must approve it first.

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Dark Patterns, Subscription Traps, Loot Boxes Face New Limits

The act may potentially replace the EU’s 2005 Unfair Commercial Practices Directive with one regulation that applies in every member state. Any trader that targets EU shoppers would be covered, wherever it is based. 

Dark patterns, which are designs that steer users into choices they did not plan, would face a general ban and a list of banned practices. Reports say the plan would also ban loot boxes for minors, add a cancel button to every online subscription and let adults switch off addictive features. Dynamic pricing would also need more openness.

Finance Watch welcomed the direction of the plan but wanted more. Peter Norwood of the group said the draft dark pattern proposals “go in the right direction.” He added that they lack ambition for financial services.

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Why the EU Wants Direct Enforcement and What Comes Next

Member states currently enforce consumer rules with help from the Commission, and according to McGrath, this system has never produced a fine. The new plan would let the Commission investigate major cross-border cases itself. National fines would have a maximum of at least 4% of local turnover, reports Agence Europe.

An earlier EU review found that 97% of the most popular websites and apps used at least one dark pattern. The Commission’s estimate weighs 88.4 billion euros in lower consumer harm over a decade against business costs of 678 million euros a year. Lawmakers will now debate the text, and details could change.