EU proposes Digital Fairness Act to curb dark patterns and loot boxes

Summarised from 3 outlets · Updated 11 Nov, 21:32 · Archive

The European Commission has proposed the Digital Fairness Act, targeting manipulative online practices including loot boxes for minors, dark patterns and addictive design features.

The European Commission published a proposal for the Digital Fairness Act on Wednesday, setting out new consumer protection rules targeting practices that exploit users into spending more time and money online. The rules would ban dark patterns—manipulative design features such as hard-to-cancel subscriptions and fake claims about product availability—and require companies to give consumers the choice to turn off addictive features like endless scrolling and autoplay videos. Restrictions would also apply to AI companions and conversational chatbots.

The act specifically targets video-game industry practices. It would ban pay-to-win and pay-to-progress mechanics for players under 18, restrict loot boxes containing surprise virtual items bought with real money, and require in-app virtual currencies to be turned off by default for under-18s. The Commission says these practices encourage overspending, particularly among vulnerable consumers like children.

Other provisions include requiring influencers to clearly disclose advertising content, restricting personalised ads and prices targeting minors, requiring transparent pricing especially for dynamic pricing and virtual currency purchases, and making subscription cancellations easier with reminders about upcoming renewals and free trial endings. The Commission estimates the rules could save EU consumers up to €13.7 billion annually.

Companies breaching the rules face fines of up to six per cent of global revenue in cases affecting more than two-thirds of the EU population. The Commission also proposed shifting enforcement power to a more centralized system, giving itself direct powers to investigate large-scale cases and coordinate member states.

European gaming industry groups have strongly opposed the proposal. The European Game Developer Federation and Video Games Europe said in a joint statement that the definition of pay-to-win is 'fundamentally flawed, lacks clear definitions and would create huge confusion for players and developers alike', potentially covering any purchase. They argue the rules would 'cripple the competitiveness of Europe's world-leading video games industry'. The act must still be negotiated with other EU institutions before implementation.

How it is being reported

• Loot boxes, influencers, and addictive features face an EU crackdownGaming, social media, and e-commerce platforms are facing a fresh wave of sweeping European Union rules that aim to make "your online experience fairer." The newly proposed Digital Fairness Act (DFA) published by the EU Commission on Wednesday is designed to tackle practices that exploit consumers into spending more of their time and money online, […]The Verge · 11 Nov, 18:13
• European gaming firms say new EU consumer rules will ‘cripple’ the industryThe EU's Digital Fairness Act clamps down on video-game practices where players are encouraged to spend real money to keep playing.Politico Europe · 11 Nov, 15:08
• Europe wants to ban 'dark patterns' in apps and loot boxes for minorsEurope's Digital Fairness Act targets digital practices that harm children and push people into spending more.Engadget · 11 Nov, 14:29

In this story: European Commission · European Game Developer Federation · Video Games Europe · Michael McGrath · European Union

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