The European Commission has put forward a sweeping set of proposals designed to make the digital economy fairer for consumers, targeting everything from hard-to-cancel subscriptions to social media features engineered to keep users hooked. The Digital Fairness Act (DFA), unveiled in Brussels on Wednesday, aims to curb manipulative marketing tactics, improve price transparency, and strengthen safeguards for minors.
“We are tackling the new unfair commercial practices that distort consumers' choices and put pressure on them, undermining their ability to make informed decisions,” said Henna Virkkunen, the EU’s executive vice-president for tech sovereignty. The package also includes a revision of the Consumer Protection Cooperation Regulation, which would give the Commission direct authority to investigate and fine companies in cross-border cases affecting consumers in multiple member states.
What the Digital Fairness Act proposes
The DFA introduces a ban on so-called “dark patterns” – deceptive design elements such as fake scarcity alerts that pressure users into purchases. Platforms would also be required to offer users the option to disable addictive features like endless scrolling and autoplay videos. Pricing rules would mandate real-time transparency for dynamic pricing, particularly for tickets to sporting and cultural events, and clarify conversion rates for virtual currencies used in video games and other digital services.
Subscription contracts would become easier to cancel, with reminders before free trials convert to paid plans and a requirement that automatic renewals be based on explicit consent rather than inertia. Consumers would also gain the right to reach a human customer service representative instead of being trapped in chatbot loops. For the first time, influencer marketing would be regulated, obliging content creators to disclose commercial partnerships and prohibiting exploitation of children’s trust.
The proposals also target practices that encourage minors to overspend in games, such as loot boxes and pay-to-progress mechanics. While adult gamers would still encounter these features, the restrictions would apply specifically to underage users. Additionally, the DFA would ban personalised advertising and pricing that targets minors or exploits vulnerabilities.
Enforcement and fines
The accompanying reform of the Consumer Protection Cooperation Regulation would empower the Commission to launch investigations into large-scale cases with cross-border impact, setting deadlines for national authorities and improving coordination on penalties. Companies found in violation could face fines of up to 6% of their annual global turnover – a level comparable to the Digital Services Act, though lower than the 10% ceiling under the Digital Markets Act.
Non-EU companies would be required to appoint a legal representative in the EU to facilitate cooperation with regulators. This move is likely to affect major tech firms headquartered outside the bloc, including those in the United States and Asia.
Michael McGrath, EU commissioner for consumer protection, called the package “the most significant reform of EU consumer protection rules in more than 20 years.” He added: “The DFA will make sure the digital economy works for consumers, not against them. Businesses that play by the rules should not lose out to those that cut corners.”
The Commission’s impact assessment estimates that the rules could save consumers €88.4 billion in financial losses between 2025 and 2035, with an annual benefit of €13.7 billion when accounting for time saved, against recurring compliance costs of €678 million for businesses.
Reception and context
Tech industry leaders have given a cautious welcome, though some question whether Brussels is sending mixed signals. The DFA is part of a broader regulatory wave that includes the EU Kids Act, the Digital Services Act, the Digital Markets Act, and the AI Act. It also follows a recent draft law targeting manipulative design tricks.
Enforcement of existing rules has produced uneven results. While Apple’s €500 million fine in April last year led to changes in its App Store policies, other cases, such as Google’s antitrust battles, have had limited impact on behaviour. The new powers aim to address such gaps by allowing the Commission to act directly in large-scale cases.
The proposals now move to the European Parliament and Council for negotiation. If adopted, they would apply across all 27 member states, with implications for the wider European Economic Area and beyond.
