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EU threatens significant fines for unfair online trade practices

By · Published by Everything Blog

In short

The proposed Digital Fairness Act targets tactics designed to nudge users into unnecessary purchases, including addictive interfaces and misleading influencer campaigns. Regulators aim to outlaw dark patterns, pricing tricks, and subscription traps to ensure companies rely on product quality rather than consumer exploitation. While officials argue the law addresses massive financial harms, some business groups have raised concerns about regulatory overlap with existing child-safety rules. The draft legislation now moves to EU member states and the European Parliament for formal negotiations.

Key points

  • The European Commission is targeting exploitative digital sales designs and personalized…: The European Commission is targeting exploitative digital sales designs and personalized advertising directed at children.
  • Business critics express concern that the proposed rules create unnecessary overlap with…: Business critics express concern that the proposed rules create unnecessary overlap with existing European digital regulations.
  • The draft act requires approval from both EU member nations and the European Parliament b…: The draft act requires approval from both EU member nations and the European Parliament before becoming enforceable law.

Sources checked by our analysis pipeline: 1

BRUSSELS, Nov 11 : Companies resorting to unfair digital trade practices to push people to buy more or target children with personalised advertising risk fines of as much as 6 per cent of their annual global turnover under a new European Commission draft law.

"Our consumer protection rules will help ensure that businesses compete on the merits of their products and services, not on their ability to exploit consumers or their ability to evade the rules," said EU justice chief Michael McGrath.

"We are not making it harder to do business, we are making it harder to do business unfairly," McGrath told a press conference on Wednesday.

The proposed Digital Fairness Act (DFA) aims to give consumers more rights but has been criticised by some businesses because of overlaps with existing laws and a proposed plan to keep children safe from online dangers.

The DFA, part of a crackdown requiring Big Tech and online platforms to do more to police their platforms, will need to be agreed with European Union countries and the European Parliament in the coming months before…

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