Skip to main content
Globe And Street

The world, accounted for.

Global business and finance

SectionsMenuClose

EU draft sets out fines of up to 6% for unfair digital sales practices

The proposed Digital Fairness Act would restrict manipulative website designs and personalized advertising aimed at children or vulnerable consumers.

Illustration of an online shopping interface with advertising and pricing options
Photo: CNA

Companies could face penalties reaching 6% of their annual global turnover for unfair digital practices under a European Commission legislative draft, according to a media report. The proposal targets tactics that pressure consumers to spend more, as well as personalized advertising directed at children.

Commission Justice chief Michael McGrath is due to present the proposed Digital Fairness Act. Negotiations with EU countries and the European Parliament would be needed before it could become law.

The draft would classify manipulative website and app interfaces, known as dark patterns, as prohibited unfair commercial practices. The Commission also seeks to prohibit personalized ads aimed at vulnerable consumers.

Businesses using dynamic pricing, under which ticket prices change with real-time demand, would have to disclose how many items are offered at the advertised price. Traders would also need to let users disable features that promote compulsive or excessive use.

Finance Watch, a group that advocates for the public interest in financial-services regulation, said the proposal offered insufficient protection for online investors. Its senior research and advocacy officer, Peter Norwood, welcomed the direction of the dark-pattern provisions but said they needed greater ambition to protect financial-services consumers.

Editorial policyReport a mistake

About the author

Ananya Iyer

Economy & Policy Editor

Edits and reviews stories on the economy and economic policy: growth, inflation, jobs, central banks, the IMF and World Bank, fiscal and trade policy, and regulators' rules.