The European Union will unveil new rules on Wednesday to crack down on influencer marketing, ban online features that trick consumers and require platforms to give users the option to turn off “addictive” features.

The EU already has a raft of laws covering data protection, artificial intelligence and online content. However, Brussels and consumer rights campaigners argue that gaps remain, leaving consumers exposed to harmful digital practices.

The bloc’s executive will unveil an update to consumer protection rules, dubbed the “Digital Fairness Act” (DFA), which will empower it to impose fines of up to 6% of a company’s annual turnover in large-scale cases.

The financial harm caused to European consumers by such practices is substantial. Official data show that “problematic” digital practices cost individuals up to 10.3 billion euros ($11.5 billion) a year.

Based on draft documents seen by AFP, the proposal will include:

• A ban on “dark patterns”, which trick users into making unwanted purchases or agreeing to certain settings without their knowledge.
• Stricter rules on how brands promote content through influencers, requiring posts to carry clear labels such as “advertisement”.
• A ban on offering minors “pay-to-win” or “pay-to-progress” features, along with a requirement for in-game virtual currencies to display their real-world value.
• A requirement for platforms to remind consumers when free trial periods are about to end, providing details of the end date and the cost of continuing the service.
• Access to human customer service representatives whenever users request it.

EU consumer protection chief Michael McGrath has previously said the new rules aim to “step up our fight against unfair commercial practices”, citing data showing that 97% of popular platforms use dark patterns.

Agustin Reyna of the European Consumer Organisation said the proposal was a “much-needed tool to give consumers back control of how much time and money they spend online”.

‘Safety net’

Questions have been raised over the EU’s expanding digital rulebook after Brussels unveiled plans to ban children under 13 from social media and require companies to make their platforms safe for minors, in addition to the sweeping rules already in place under the Digital Services Act.

However, Spanish EU lawmaker Laura Ballarin Cereza said the proposal aimed to create a “safer online space for everyone, children and adults alike”, adding that it would “fill the gaps” because “consumer law is meant to act as a safety net”.

The EU also wants consumers to know the full price of an order before checkout. The proposal would ban a practice known as “drip pricing”, in which additional fees are revealed only at the final stage of a purchase.

The European Commission, the bloc’s digital watchdog, has faced pressure from EU lawmakers and consumer advocates, who accuse it of failing to enforce its online content and competition rules.

“Strong rules only matter if they are properly enforced,” said the Euroconsumers group, which represents consumer rights organisations across several EU countries.

NGO Finance Watch said the proposal’s provisions on dark patterns were “going in the right direction”, but lacked sufficient ambition to protect consumers in financial services.

The group also warned of “significant holes” in the draft plans, saying, “Firms could still pay influencers to promote risky investments.”

Finance Watch raised concerns in September about financial influencers and the risks consumers face from “misleading” information.