The European Union has proposed new digital consumer protection rules that could restrict manipulative app designs, addictive online features and video game purchases targeting children.
The proposed Digital Fairness Act (DFA) aims to prevent companies from using online tactics that pressure users into spending money or make it difficult for them to exercise control over their choices. Under the proposal, companies could face fines of up to 6% of their annual global revenue for violating the rules.
This new law will address what are known as dark patterns in interfaces that trick users into engaging in behaviour that they might not do on their own. This includes misleading statements regarding the availability of products and confusing terms of pricing and subscriptions that are hard to cancel.
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Additionally, consumers can choose whether or not they want to disable addictive design elements meant to induce them to spend money excessively. This includes notifications and other engagement tactics.
The EU also requires more transparent pricing when making online purchases, including tickets to cultural and sports events. Influencers will need to reveal any business ties, and predatory personalisation in advertising and pricing toward children will be banned.
Children’s protection is one of the main aspects of the proposal. The EU aims to discourage certain activities that would encourage minors to spend money excessively on video games, such as loot boxes, pay-to-win features, and regular requests to purchase something.
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Loot boxes provide players with randomized in-game items as a reward, usually for payment or in-game currency. There is a concern about the resemblance of loot boxes to gambling and the pressure they can put on young gamers.
Moreover, the Digital Fairness Act is going to give the European Commission the power to look into major cases affecting consumers from many different countries. Currently, the Digital Fairness Act is not legally enforced and needs to be negotiated and approved first by the European Parliament and EU member states.