EU proposes Digital Fairness Act with fines up to 6%

The European Commission unveiled a draft Digital Fairness Act on November 11, proposing new protections against manipulative online practices and fines of up to 6% of worldwide annual turnover for qualifying breaches. The proposal is part of a broader package to update the European Union’s consumer-protection rules for digital markets.

The draft targets deceptive design, misleading influencer marketing, subscription traps and pricing practices. The Commission says consumers would be able to switch off features such as autoplay and endless scrolling. The proposal would also require clearer disclosure of paid influencer promotions and make online subscriptions easier to cancel.

Under the Commission’s proposed enforcement framework, cases eligible for its direct powers would need cross-border reach involving at least two-thirds of EU countries and at least two-thirds of the bloc’s population. The Commission said it would not pursue cases against small and medium-sized businesses. The draft also provides for fines of up to 6% of worldwide annual turnover in qualifying cases.

The package addresses personalized advertising and pricing, with additional provisions described by the...