EU digital fairness draft proposes fines of up to 6% of global turnover

A European Commission draft would allow fines of up to 6% of global annual turnover for companies engaging in unfair digital trading practices. The proposed Digital Fairness Act is due to be presented on Wednesday; the draft is not legislation already in force.

The text would target misleading website and app designs, often called dark patterns, that steer consumers into buying more. It also proposes restrictions on personalised advertising aimed at minors or vulnerable consumers. The final scope remains subject to the legislative process.

Businesses using dynamic pricing would have to disclose how many products are available at an advertised price, under the draft described in the report. Users would also need an option to switch off features designed to encourage excessive use.

Consumer advocates welcomed action on manipulative design but raised concerns about gaps. Finance Watch said the proposal did not go far enough to protect people investing through financial services, arguing that stronger safeguards were needed.

The proposal would require negotiations with EU member states and the European Parliament before becoming law. The maximum fine, the practices covered and the duties imposed on companies could change during that process. The draft therefore does not establish that a particular business has broken the rules or that a 6% penalty has been imposed.