EU's Digital Fairness Act would ban dark patterns, subscription traps and loot boxes for minors
The European Commission on Wednesday, November 11, proposed the Digital Fairness Act, what it calls a major update to EU consumer law that would ban manipulative "dark patterns," make online subscriptions easier to cancel and bar loot boxes for minors. It would apply to companies selling to consumers online in the EU, and a companion proposal would let the Commission fine large companies up to 6 percent of their worldwide annual turnover.
What the Digital Fairness Act bans
The proposal adds new entries to the EU's list of commercial practices that are banned in all circumstances. The Commission's examples include:
- fake scarcity claims such as "Only 1 left";
- shaming people for saying no, such as a "We're sad to see you go" message or an unsubscribe button labeled "I don't like good deals";
- pre-ticked boxes and extra items added to a shopping basket automatically.
Personalized ads aimed at minors or based on sensitive data such as health, which the Digital Services Act already bans on online platforms, would be banned on all websites and apps. Companies also couldn't charge minors or vulnerable consumers higher personalized prices.
Subscriptions, prices and in-app currencies
Digital contracts would need a simple cancellation option. Companies would have to warn people more clearly before a free trial ends or a subscription renews, and a free trial couldn't turn into a paid plan without the customer actively confirming it. People would also get a right to reach a human in customer service when other channels don't solve a problem, and clear rights when an AI agent buys something on their behalf.
Prices would have to include all fees, taxes and charges from the start, which the Commission says would effectively end drip pricing. Ticket sites with virtual queues would have to show the current price in real time and the highest possible price. Ticket resellers would have to show the original price and ticket type, plus the row and seat number where relevant.
Games and apps that sell virtual currencies would have to show what those purchases are worth in real money. For minors, in-app currencies would be off by default, and loot boxes, pay-to-win and pay-to-progress features would be banned.
People could also turn off design features meant to keep them hooked, such as video autoplay and notifications unrelated to what they're doing on the service. Influencers would have to disclose when they're paid to promote something.
New EU enforcement powers
Alongside the act, the Commission proposed a revision of the Consumer Protection Cooperation Regulation. Currently, national authorities enforce EU consumer law, and the Commission can't enforce it directly. Under the proposal, the Commission could investigate and fine a company directly when a breach likely affects consumers in at least two-thirds of EU member states, covering at least two-thirds of the EU population, and the company isn't a small or medium-sized business.
Companies based outside the EU would have to appoint a legal representative in the EU. The Commission estimates the package could save EU consumers up to €13.7 billion a year.
What it means for you
Nothing changes yet. The proposals now go to the European Parliament and the Council for discussion, and the Commission's announcement gives no date for when the rules would apply.
If the act passes in its current form, people in the EU would see fewer fake scarcity claims, easier cancellations and full prices up front. Parents would also see changes in games, where loot boxes and pay-to-win features would be off-limits for children. Because the act would be a regulation rather than a directive, the same rules would apply directly in every member state.