EU draft law would hit dark patterns with fines up to 6% of global turnover

The fine is the sharp edge of the plan. Companies that use unfair digital trade practices to push people into spending more, or that target children with personalised advertising, could be hit with penalties as high as 6% of annual global turnover, according to a European Commission draft seen by Reuters and reported by investing.com. Justice chief Michael McGrath presents the Digital Fairness Act on Wednesday. It then has to be negotiated with EU governments and the European Parliament, which can rewrite it before it becomes law.

The draft brands business-to-consumer "dark patterns" — deceptive or manipulative interface designs on websites and apps that steer users toward buying more — as unfair commercial practices, putting them in line for a ban. Personalised advertising aimed at children or vulnerable consumers would be prohibited too.

Dynamic pricing faces a disclosure rule. Where prices move with real-time demand, a practice that has drawn consumer complaints, companies would have to reveal how many items are available at the price on offer. Traders would also be required to let users switch off addictive features that encourage compulsive or excessive use.

The DFA is Europe's latest legislative push to get Big Tech, e-commerce and social media giants to do more policing of their own platforms.

Finance Watch is already pushing back. The group, which campaigns for the public interest in financial services rulemaking, argues the text falls short for people investing online. "The proposals on dark patterns go in the right direction, but they lack ambition to sufficiently protect consumers in financial services," said Peter Norwood, senior research and advocacy officer at Finance Watch.