EU threatens significant fines for unfair online trade practices
XLK•A European Commission draft law would allow fines of up to 6% of a company’s annual global turnover for unfair digital trade practices, including targeting children with personalised advertising. The proposed Digital Fairness Act would also address dark patterns, addictive designs, misleading influencer marketing, pricing practices and subscription traps.
1. Proposed fines
Companies using unfair digital trade practices to encourage purchases or target children with personalised advertising could face fines of up to 6% of their annual global turnover under a European Commission draft law. EU justice chief Michael McGrath said the rules would make it harder to do business unfairly.
2. Next steps
The proposed Digital Fairness Act aims to give consumers more rights and would need approval from EU countries and the European Parliament before becoming law. The proposal has faced criticism from some businesses over overlaps with existing laws and a separate plan to protect children online.
