European Commission to present Digital Fairness Act draft to protect consumers — Tagesschau

The European Commission is set to present a draft Digital Fairness Act on November 11 — a law intended to strengthen consumer protection online. The initiative will cover advertising, algorithms, influencers, online stores and ticket sellers, Tagesschau reports.

According to EU research, Europeans’ main concerns online include a lack of control over their own data, the risk of addiction to social media, as well as difficulties cancelling contracts and additional charges for streaming subscriptions or gaming platforms.

Advertising and algorithms

European Commission President Ursula von der Leyen said the new rules should counter online design mechanisms that may cause addiction or harm users. This includes methods aimed at retaining users’ attention, non-transparent contracts, subscription traps and manipulative practices.

The draft is intended to bring the level of online consumer protection closer to the rules that apply to ordinary purchases. Current EU digital laws primarily define the responsibility of major platforms, including in the area of protecting minors, or limit the market power of the largest technology companies.

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Requirements for influencers and sellers

Influencers who use their social media audience for paid advertising will have to clearly label such content in every post. They will also be prohibited from making false promises or targeting advertising materials at minors.

According to the European Commission’s estimate, problematic online business models caused consumers in the EU about €8 billion in harm last year. Practices proposed for prohibition include fake discounts created through an artificially inflated reference price and messages claiming that product availability is supposedly limited.

Some business associations question the need for a new law, pointing to EU acts already in force or planned, including the Digital Services Act, the Digital Markets Act, the Artificial Intelligence Act, the Consumer Rights Directive and the EU Kids Act. According to the publication, negotiations are only entering an active phase, and the rules may become mandatory no earlier than 2029.