
EU Draft Law Threatens Fines Up to 6% of Global Turnover Over Dark Patterns
EU draft Digital Fairness Act would fine firms up to 6% of global turnover for dark patterns and child-targeted personalised ads; McGrath presents it Nov. 11.
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Companies that use manipulative interface design to push shoppers into buying more, or that aim personalised advertising at children, could face fines of up to 6% of their annual global turnover under a European Commission draft law seen by Reuters. Justice Commissioner Michael McGrath will present the proposal, the Digital Fairness Act, on Wednesday, Nov. 11. It then heads into negotiation with EU governments and the European Parliament before it can become law.
The 6% ceiling matches the maximum fine available under the Digital Services Act, which governs online platforms. EU consumer rules today set a lower bar: the 2019 Omnibus Directive requires member states to allow fines of at least 4% of a trader's annual turnover in the countries concerned for widespread infringements. The new draft would raise that exposure to 6% of turnover worldwide — a difference that, for any global platform, turns a compliance problem into a boardroom risk.
What exactly would the act ban?
The draft would classify business-to-consumer "dark patterns" — deceptive or manipulative interface designs on websites and apps that steer people into buying more — as unfair commercial practices, and ban them outright. It would also prohibit personalised advertising aimed at children or at vulnerable consumers.
Two further obligations sit in the text:
- Sellers using dynamic pricing, where prices such as event tickets move with real-time demand, would have to disclose how many items remain available at the advertised price.
- Traders would have to let users switch off features that encourage compulsive or excessive use of their services.
Reuters does not name specific companies the draft would hit, describing the act instead as the EU's latest push to get Big Tech, e-commerce and social media giants to do more to police their platforms.
How widespread is the problem?
The Commission's earlier review of EU consumer law found that 97% of the most popular websites and apps used by EU consumers deployed at least one dark pattern, according to a summary by law firm CMS. That figure alone explains why Brussels chose to legislate rather than enforce case by case.
CMS, which correctly expected the proposal on Nov. 11, does not expect the act to take effect before the end of 2028. The firm also listed subscription traps, influencer marketing and AI chatbots as likely topics for the law; Reuters' account of the draft does not mention them, so their inclusion remains a law firm's prediction rather than confirmed text.
Does the draft satisfy consumer advocates?
Not entirely. Finance Watch, a campaign group focused on financial services rules, said the draft falls short for people 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, the group's senior research and advocacy officer.
The criticism signals where the negotiation battle lines will form. Consumer groups will push to widen the act's scope; industry will push back on the fine ceiling and the cost of redesigning interfaces that, on the Commission's own numbers, sit on nearly every popular site and app serving EU users.
For platforms and e-commerce firms, the practical question is now arithmetic: a 6% global-turnover exposure, applied to interfaces that 97% of popular services use, makes dark-pattern remediation cheaper than the fine. With McGrath's presentation set for Nov. 11 and CMS predicting no entry into force before the end of 2028, companies have a multi-year window — but one in which every design decision on defaults, nudges and dynamic pricing will be measured against a standard Brussels has now put on paper.
Source: mlq.ai
More from Rebecca Stone
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Correspondent covering technology and product news in Semiconductors, chip manufacturing, hardware, AI compute at Chip Dispatch.
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