The Commission’s report on EU consumer law finds that addictive designs, social media influencers, and dark patterns are posing risks for users, manipulating their choices online. It will serve as the basis for the Digital Fairness Act, which will be on the next Justice Commissioner’s agenda.
Although EU consumers are among the most protected in the world, online and offline, the consumer regulation lacks teeth to combat new harmful online practices adopted by some businesses, according to the executive’s recent (3 October) Digital Fairness Fitness Check report.
The report assessed directives on unfair commercial practices, consumer rights and unfair contract terms.
Among harmful practices identified are so-called “dark patterns” – design elements that manipulate consumers into making unwanted purchases. These may include fake countdown timers, an overwhelming amount of information designed to push unnecessary options, or misleading cookie consent processes. The Commission’s study revealed that 40% of consumers end up purchasing products they didn’t intend to, due to such confusing designs.
Addictive design was also flagged, particularly within social media but also video games. The Digital Fairness Fitness Check refers to the European Parliament’s 2023 resolution on the addictive design of online services, authored by Kim van Sparrentak (Netherlands/Greens). This resolution warns against practices aimed at keeping users engaged on platforms for as long as possible, such as autoplay videos, infinite scroll, and disengagement penalties.
Influencers on social media are also in highlighted in the report. The blurred line between paid advertisements and genuine posts makes it difficult for users to distinguish between commercial content and personal opinions, according to the report. Countries like France are already legislating in this area, requiring influencers to disclose sponsored content and banning the promotion of dangerous products such as cosmetic surgery, cigarettes, and gambling. The report recommends that EU member states agree on a common definition of ‘influencer’ and establish clear obligations for them.
Other problematic practices identified include in-app virtual currencies, the difficulty of cancelling products online, unfair terms and conditions, dropshipping, and the use of AI chatbots.
“The growing gap in power and information between businesses and consumers leaves us all increasingly vulnerable to manipulation and exploitation. It is encouraging that the Commission’s report recognises many of the risks consumers face online,” said consumer group BEUC’s Senior Legal Officer Urs Buscke on the report. BEUC contributed to the report.
The report will serve as a basis for the work of Irish Commissioner-designate for Democracy, Justice, and Rule of Law, Michael McGrath. In his mission letter from Ursula von der Leyen, McGrath has been tasked with protecting consumer rights, including the potential introduction of a Digital Fairness Act. “We count on the next Commissioner to thoughtfully consider these findings when shaping future laws that protect consumers from online manipulation,” said Buscke.
However, CCIA Europe, the lobby group representing the interests of online platforms which also contributed to the report, called on the Commission to hold back on further regulation. It argued that it is “too early to assess what kind of improvements the current rules would need”, insisting that the proper implementation of existing rules, such as the Digital Services Act, the Digital Markets Act, and the Artificial Intelligence Act, should take priority as they were only recently adopted and are not yet fully enforced.
