Brussels – Greater transparency regarding sponsored content posted by influencers, a ban on personalised advertising targeting minors, and a ban on increased prices based on consumers’ vulnerabilities. But also the option to turn off platform features that encourage compulsive use of online services, and simpler procedures for cancelling subscriptions and automatic renewals. These are some of the measures contained in the Digital Fairness Act (DFA), presented today (11 November) by the Commissioner for Democracy, Michael McGrath, and the Executive Vice-President for Technological Sovereignty, Henna Virkkunen, at the Berlaymont Building to strengthen consumer protection in the digital environment and combat unfair commercial practices.
The proposal primarily addresses influencer marketing, which users increasingly perceive as personal advice rather than commercial communication. Creators must clearly and recognisably indicate when content is sponsored or the result of a paid collaboration, without confusing advertising with personal experiences. Furthermore, they will not be permitted to promote products that are dangerous or misleadingly presented as suitable for minors. These obligations will also apply to brands and agencies, which must ensure compliance with the rules.
Another section concerns targeted advertising and personalised pricing. The bans already established by the Digital Services Act (DSA) for online platforms—which prohibit targeting minors with personalized advertisements or using special categories of personal data for advertising—will be extended to all websites and applications. Furthermore, companies will not be permitted to exploit personal qualities and the vulnerability of consumers, particularly minors, to charge higher prices.
Brussels is also targeting so-called dark patterns – digital interface design techniques that manipulate users’ choices, prompting them to purchase products or services they would not otherwise have chosen. Examples include false claims about a product’s limited availability, used to create a sense of urgency, and hidden additional costs during the purchasing process. The proposal also aims to ensure greater transparency regarding dynamic pricing, including during virtual queues for purchasing tickets for cultural and sporting events.
The regulation also addresses features that encourage excessive or compulsive use of digital services. Users will be able to turn off features such as automatic video playback, infinite content scrolling, and notifications not directly related to their activity. Particular attention is paid to minors: mechanisms that encourage excessive spending on video games will be curbed, including pay-to-win and pay-to-progress features that allow users to gain advantages or progress more quickly through in-app purchases.
Other new measures include greater safeguards for those taking out digital subscriptions. The European Commission aims to make it easier to cancel contracts, prevent free trials from turning into paid subscriptions without informed consent, and tackle unwanted automatic renewals. Consumers will also need to be able to speak to a human customer service representative and enjoy clearer rights when using artificial intelligence agents to make purchases.
“The main reason why this package is necessary is that the current consumer protection framework in the European Union was designed before the exponential growth of e-commerce and digital markets,” explained the European Commissioner for Justice and Consumer Protection, Michael McGrath, when presenting the new measures. The Commissioner stressed “the need to provide the EU with more effective tools to combat unfair practices”.
The package also includes a revision of the consumer protection cooperation (CPC) regulation, aimed at strengthening the EU Commission’s powers to intervene. Brussels will be able to launch direct investigations into cases of large-scale infringements that have a significant impact on consumers in several Member States and impose fines of up to 6 per cent of the global annual turnover of the companies responsible. Companies based outside the EU will also have to appoint a legal representative within the Union to cooperate with the authorities.
The Commission also proposes to transform the Unfair Commercial Practices Directive into a regulation directly applicable in all Member States, thereby reducing differences between national laws. According to the European Commission’s estimates, the package could generate benefits for consumers of up to 13.7 billion euros a year, thanks to reduced financial losses and costs associated with unfair practices.
“The Single Market lives through its 450 million consumers,” Virkkunen stressed. “Our laws must keep up with the way people live, shop and do business today. This reform will make everyday life simpler, fairer and safer for consumers, while giving businesses the clarity and confidence they need to thrive,” she concluded.
English version by the Translation Service of Withub
