EU Digital Fairness Act: Plan to Crack Influencer Marketing
The European Union will unveil a Digital Fairness Act on Wednesday, according to draft documents. It would require influencers to label ads clearly, ban tricks known as dark patterns, curb pay-to-win games for minors and end hidden fees at online checkouts.
The European Union plans to crack influencer marketing and ban online features that trick consumers, according to draft documents on a planned overhaul of the bloc's consumer protection rules. Consumer protection chief Michael McGrath is due to unveil the proposal, called the "Digital Fairness Act", on Wednesday.
The EU already has multiple laws covering data protection, artificial intelligence and online content. Brussels and campaigners argue there are gaps that leave consumers exposed to harmful digital practices. The new law is meant to fill them, the documents say.
Rules for influencers and brands
Companies and brands that work with influencers would face stricter rules on how products are promoted. Content creators would have to label videos and posts clearly as an "advertisement" or "commercial collaboration".
Brands could not ask influencers to encourage children to buy products. They also could not ask them to persuade parents to buy items in commercial content.
Dark patterns and pricing
The EU will ban deceptive practices known as "dark patterns". These are features designed to trick users into making choices a seller prefers. The rules would also demand greater transparency over pricing.
One document, which is still subject to revisions, says online sellers must not make false claims about a product's availability or popularity. They also should not suggest an item is popular and therefore scarce.
Brussels also wants users to know the full price of an online order before checkout. That would ban "drip pricing", where fees stay hidden until the end. Sellers would instead have to reveal "the maximum price a consumer may be required to pay for that ticket", one document said.
Games, trials and notifications
Video games would be banned from offering minors "pay-to-win" or "pay-to-progress" features. In-game virtual currencies would have to show the real-world value of the currency used to buy them.
Users should have the right to disable features such as autoplay and notifications not related to their activity, one of the documents said.
Platforms would also have to remind consumers when a free trial ends. The reminder would give the end date and say how much it will cost to continue.
Because the documents are drafts, details could change before McGrath presents the final proposal on Wednesday.
