EU to ban misleading online sales tactics and subscription traps

The EU plans to put an end to rampant online phenomena such as “only two seats left at this price” and other misleading advertising tricks that often prompt consumers to make hurried purchases for fear of losing out on a bargain, it said on Wednesday. On Wednesday the Commission presented its proposal for a Digital Fairness Act (DFA) – a major update of the EU consumer protection rules “to ensure that consumers in the EU enjoy the same high level of protection online as they do offline”. It said the rapid growth of e-commerce and digital markets had transformed the way people shop, making it easier than ever for consumers to access goods and services. “But this convenience must not come at the expense of fairness. Unfair commercial practices online, such as manipulative marketing tactics or hidden fees, undermine consumers’ ability to make free and informed choices,” the Commission said. It added that the new proposals would equip the EU with stronger tools to tackle these unfair practices, strengthen enforcement across the Single Market and simplify the rules businesses must follow, increasing compliance. The result could save EU consumers up to €13.7 billion a year it added. The Digital Fairness Act proposal includes a ban on manipulative marketing tactics (so-called “dark patterns”) such as fake claims that a product is almost sold out that pressure consumers into purchasing decisions they might not otherwise make. It also includes clear and transparent pricing, particularly prices of purchases made with virtual in-app currencies and when dynamic pricing is used for cultural and sports events. In virtual queues, companies will have to show the current price in real time and the highest possible price. The fairness by design proposal will allow consumers to turn off addictive design features that encourage excessive or compulsive spending, such as persistent prompts. It will also restrict unfair practices that encourage overspending, for example by banning gambling-like features for minors, such as pay-to-win and pay-to-progress. As far as influencers are concerned, the proposal will require them to be transparent about commercial content. Another bug bear to be tackled are digital contracts and subscriptions that will be easier to cancel, putting an end to unwanted automatic renewals and free trials turning into subscription traps. Consumers will have the right to communicate with a human in customer service and will have clear rights when using an AI agent to buy products on their behalf. The proposals will now be discussed by the European Parliament and Council. “Shopping has never been more convenient, but convenience must never come at the expense of fairness,” said Michael McGrath, Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection “Whether people shop online or in a physical store, they deserve the same high level of protection.”