Key facts
- The draft Digital Fairness Act would ban business-to-consumer dark patterns, which it calls deceptive interface designs that steer people into buying more.
- The Commission wants to ban personalised advertising aimed at children or vulnerable consumers, the draft document said.
- Companies using dynamic pricing would have to disclose how many items are available at the advertised price.
- Traders would have to let users switch off features that encourage compulsive or excessive use, the document said.
- Michael McGrath, the Commission's Justice chief, will present the proposal on Wednesday, after which it faces EU countries and the European Parliament.
- Finance Watch's Peter Norwood said the dark patterns proposals go in the right direction but lack ambition for financial services consumers.
The European Commission has drafted legislation that would allow fines of as much as 6% of a company's annual global turnover for unfair digital trade practices, according to the draft law seen by Reuters.
The proposal, known as the Digital Fairness Act, is due to be presented on Wednesday by the Commission's Justice chief, Michael McGrath. It would then need to be negotiated with EU countries and the European Parliament before it can become law.
The draft would ban business-to-consumer "dark patterns", which the document describes as deceptive or manipulative interface designs on websites and apps that steer people into buying more, treating them as unfair commercial practices. It also targets personalised advertising aimed at children or vulnerable consumers.
Companies using dynamic pricing, where ticket prices move with real-time demand, would have to disclose the number of items available at the advertised price. Traders would also have to give users the option to switch off features that encourage compulsive or excessive use, the document said.
Finance Watch, which campaigns for the public interest in financial services rulemaking, said the proposal does not do enough for consumers 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.