Digital Fairness Act To Enhance Online Consumer Protection
In October 2024, the European Commission published its Digital Fairness Fitness Check report, assessing the effectiveness of EU consumer protection laws, including the Unfair Commercial Practices Directive, Consumer Rights Directive, and Unfair Contract Terms Directive. The report highlighted that these laws have only partially achieved their objectives, with harmful online commercial practices costing EU consumers at least €7.9 billion annually. The findings are now informing the development of the Digital Fairness Act (DFA), which aims to address power and information imbalances between businesses and consumers online.
The DFA proposal, encouraged by European Commission President Ursula von der Leyen, targets five core problematic practices in consumer-facing apps and platforms: “dark patterns,” addictive design, personalized targeting, social media influencers’ commercial practices, and difficulties in canceling digital subscriptions. European Digital Rights (EDRi) and other civil society organizations advocate for a rights-centered approach, emphasizing “fairness by design” and “fairness by default” to ensure that digital platforms respect fundamental rights.
Enforcement and accountability are crucial for the DFA’s success. The Digital Fairness Fitness Check report pointed out widespread non-compliance among tech companies, necessitating clear, enforceable rules. The European Commission’s proceedings against Meta, Alphabet, and Apple for non-compliance with the Digital Markets Act underscore the need for robust enforcement mechanisms. EDRi and the European Consumer Organisation (BEUC) stress the importance of prohibiting manipulative practices outright rather than relying on voluntary compliance.
The DFA could also address monopolistic practices within the tech industry, particularly among Very Large Online Platforms (VLOPs). Advocates propose a digital ecosystem that supports independent content curation and moderation services, potentially breaking up monopolies like Google’s. This approach could mitigate harms associated with addictive design and data surveillance. The DFA presents an opportunity to set a global precedent for fairness, transparency, and accountability in the digital ecosystem, contingent on bold policymaking.
Source: EU law could usher in transformative change to digital ecosystems
