EU's proposed Digital Fairness Act targets loot boxes, dark patterns and influencer ads

The European Commission has published a draft Digital Fairness Act, a sweeping consumer-protection proposal aimed at manipulative online design, covering everything from loot boxes and endless scrolling to undisclosed influencer marketing. According to The Verge, the proposal was released on Wednesday and targets practices that push people into spending more of their time and money online than they otherwise would.

The Commission estimates the measures could save consumers across the bloc as much as €13.7 billion (roughly $15.1 billion) per year.

Bans on dark patterns and addictive design

According to The Verge, the draft would outlaw manipulative marketing techniques, commonly known as dark patterns, such as falsely claiming a product is almost sold out to rush a purchase. Platforms would be required to let users switch off addictive features, including autoplaying videos, infinite scrolling feeds and persistent notification prompts. Those obligations would also extend to AI companions and general-purpose conversational chatbots.

For minors, the proposal goes further, restricting gambling-like mechanics such as pay-to-win and pay-to-progress purchases. Influencers would have to clearly label paid promotions and would face additional limits on exploiting the trust of children.

Ads, subscriptions and transparent pricing

The Verge reports that the DFA would also curb unfair personalised advertising and pricing that targets minors or leverages sensitive personal data. Subscriptions and other digital contracts would need to become simpler to cancel, with reminders before automatic renewals and before free trials convert into paid plans.

Pricing rules feature prominently. Companies would have to make costs clear, particularly around dynamic pricing and purchases made with in-app virtual currencies, a setup that often obscures how much real money an item costs. When consumers are stuck in virtual queues for cultural and sports event tickets, sellers would need to show the live price in real time, displayed at the highest possible amount, so buyers know the ceiling up front.

Two further provisions address customer service: consumers would gain a right to communicate with a human representative, and the act would clarify their rights when an AI agent carries out purchases on their behalf.

Industry pushback and a long road to law

Some gaming organisations have already criticised the proposal, with The Verge reporting that they described its restrictions on virtual currencies, loot boxes and micro-transactions aimed at minors as "unworkable, unjustified and disproportionate."

The DFA is still only a draft. It must pass through the European Parliament and the Council of the European Union before becoming law, and its current measures could be changed or removed entirely during that process. If it does come into force, the Commission says companies that violate the rules could face fines of up to six percent of their worldwide annual turnover.

EU Commissioner Michael McGrath defended the proposal, arguing that businesses should "compete on the merits of their products and services" rather than on their ability to exploit consumers, and that the EU is making it harder to do business unfairly, not harder to do business. He added that consumers cannot remain governed by rules that have not kept pace with the modern digital economy.

The Verge notes the proposal's reach could extend across large parts of the everyday internet, from the recommendation algorithms that funnel users down rabbit holes on YouTube, TikTok and Meta's platforms, to AI chatbots and apps such as Duolingo that use streaks and nudges to keep people coming back.

Why it matters

The DFA signals that Brussels now wants to regulate not just what platforms publish, but how products are designed. If the addictive-design opt-outs and the minor-focused restrictions survive the legislative process, gaming studios and social media companies operating in the EU would likely need to rework core engagement mechanics, from loot boxes to autoplay, for all users rather than building EU-only modes. The threat of fines reaching six percent of global turnover gives the proposal serious teeth, and as with the GDPR and the Digital Services Act, compliance changes made for Europe tend to reshape products worldwide. At the same time, the draft's breadth, and the early industry backlash, mean its final form is far from settled.