EU Digital Fairness Act targets loot boxes and addictive app design

What the Commission proposed

The European Commission published a proposed Digital Fairness Act on Wednesday, according to The Verge, setting out a broad set of consumer protection rules for online services. The package covers gaming, social media and e-commerce platforms, and its stated aim is to make the online experience fairer for users.

The proposal targets business models that push people to spend more time and money than they intended. It spans manipulative interface design, gambling-style mechanics in games, influencer advertising, personalised pricing and the way subscriptions are sold and cancelled.

Dark patterns and addictive design

One central element is a ban on manipulative marketing tactics, often called dark patterns, that steer consumers toward choices they would not otherwise make. The Commission's example is a false claim that a product is nearly sold out.

Services would also have to let users switch off features designed to keep them engaged, such as constant prompts, infinite scrolling and videos that play automatically. The restrictions on addictive design would extend to AI companions and general-purpose conversational chatbots as well, which widens the scope well beyond games and social apps.

Loot boxes and spending pressure on minors

The proposal takes aim at mechanics that encourage overspending. Gambling-like features, including pay-to-win and pay-to-progress systems, would be banned for minors under the plan.

The rules would also cover virtual in-app currencies, requiring transparent pricing so that buyers can see what they are actually paying. The Verge notes that the scope is wide enough to reach the recommendation algorithms on YouTube, TikTok and Meta platforms, as well as apps that nudge users to keep returning.

Influencers, ads and subscriptions

Influencers would be required to disclose advertising clearly, and the proposal includes restrictions intended to stop them from exploiting children's trust. Personalised advertising and pricing that singles out minors, or that leans on sensitive personal data, would also be limited.

Subscriptions and digital contracts would become easier to cancel. Companies would have to remind customers before an automatic renewal kicks in and before a free trial ends. For ticket sales, firms using virtual queues for cultural and sports events would have to display the current price in real time, at the highest price it could reach.

Human support and industry pushback

Consumers would gain the right to reach a human customer service representative, along with clearer rights when an AI agent makes purchases on their behalf. Transparent pricing would also be required around dynamic pricing.

The proposal is not universally welcome. Some gaming organisations have already criticised it, describing its rules on virtual currencies, loot boxes and micro-transactions for minors as unworkable, unjustified and disproportionate, The Verge reports. The measure is a proposal, not yet law, so its final shape will depend on the EU legislative process.