Companies risk fines of 6% global turnover for unfair digital trade practices, EU draft law shows

A European Commission draft law would allow fines of up to 6 per cent of a company’s annual global turnover for unfair digital trade practices. The proposed Digital Fairness Act aims to curb tactics that manipulate people into buying more and personalised advertising aimed at children or vulnerable consumers.

The draft would classify deceptive website and app designs, known as dark patterns, as unfair commercial practices, and require greater transparency for dynamic pricing, including how many items are available at an advertised price. Traders would also have to let users switch off features that encourage excessive use. Justice chief Michael McGrath is due to present the proposal on Wednesday; it would then need approval from EU countries and the European Parliament. Finance Watch said the proposals do not go far enough to protect people investing online.