European Commission Drafts Digital Fairness Act to Ban Dark Patterns

The European Commission has drafted the Digital Fairness Act, a legislative proposal designed to eliminate unfair digital trade practices across the European Union. The act targets dark patterns, which are deceptive interface designs used to manipulate consumers into making purchases, and proposes a ban on personalized advertising directed at children or vulnerable populations.

Under the proposed law, companies could face fines of up to 6% of their annual global turnover for violations. The legislation would also mandate that traders disclose the quantity of items available at advertised prices when using dynamic pricing and require companies to allow users to disable addictive features that encourage compulsive use.

Justice Commissioner Michael McGrath is scheduled to present the proposal on Wednesday, though the act requires subsequent approval from EU member states and the European Parliament. Finance Watch has already criticized the draft, arguing that the measures do not go far enough to protect consumers within the financial services sector.