Consumer protection Archives | Digital Watch Observatory

Google highlights rising online scam threats

Google has warned that online scams remain a major global challenge, citing estimates that fraud losses could reach nearly $580 billion in 2025.

In its latest fraud and scams advisory, the company said phishing attacks are becoming more sophisticated, with criminals using adversary-in-the-middle techniques and QR code phishing, also known as quishing, to steal credentials and bypass security measures.

The advisory also highlighted risks linked to cryptocurrency investment scams, malicious finance applications and police impersonation schemes. According to Google, scammers are using AI, social engineering and trusted digital services to deceive users, obtain money and collect sensitive information.

Google said its Trust & Safety teams are using AI tools, predictive analytics and policy enforcement to detect and disrupt fraudulent activity across its services. The company also pointed to measures such as stronger protections for session cookies, enforcement against deceptive crypto ads, monitoring of post-installation app behaviour and developer identity verification for apps installed on certified Android devices.

The company urged users to be cautious of unsolicited communications, unrealistic investment promises, unexpected QR codes and requests for personal or financial information.

Why does it matter?

The advisory shows how online fraud is becoming a cross-platform governance problem rather than a narrow cybersecurity issue. Scams now rely on trusted cloud services, mobile apps, messaging platforms, crypto infrastructure and impersonation of public authorities. That creates pressure on major technology companies to strengthen detection, app accountability and policy enforcement, while raising broader questions about consumer protection, platform responsibility and digital trust.

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Apple unveils next-generation Siri AI and expanded child safety features

Apple has unveiled the next generation of Apple Intelligence at WWDC26, introducing a significantly upgraded Siri designed to provide deeper personal context awareness, broader app integration and more advanced conversational capabilities.

The new assistant can search across messages, emails and photos, answer questions about on-screen content and access web information to provide more up-to-date responses while maintaining Apple’s privacy-focused approach.

Alongside its AI announcements, Apple announced major updates to parental controls and Screen Time features. Parents will be able to approve new contacts, manage app permissions more precisely and benefit from new safety features designed to respond when explicit or violent content is shared.

New screen time recommendations and scheduling tools are also intended to encourage healthier digital habits for children.

Software updates arriving later this year across Apple’s operating systems will also introduce a range of performance improvements.

Apple said app launches on iPhone and iPad are up to 30% faster, newly captured photos load up to 70% faster, and AirDrop transfers can be up to 80% quicker. Search functions across Spotlight, Photos, and Mail have also been redesigned to improve speed and accuracy.

Additional features include enhanced health tracking, expanded AirPods personalisation, improved Apple Watch functionality, cross-platform photo sharing through iCloud Shared Albums, and AI-powered upgrades to Apple Maps and Apple Vision Pro.

Public beta testing begins next month, with the full software release scheduled for autumn. Apple noted that some Apple Intelligence features will vary by device, language, and region, with regulatory requirements affecting availability in certain markets, including China and parts of the European Union.

Why does it matter?

Apple’s latest updates reflect a broader industry shift, especially towards embedding child safety and digital well-being features directly into operating systems, as governments and regulators worldwide increase scrutiny of how technology platforms protect young users online.

Enhanced parental controls, communication safeguards, and screen time management tools could help set new standards for online child protection, influencing future policies and product development across the technology sector.

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Starlink enters European ultra-low-cost flights through Wizz Air

Wizz Air has announced plans to roll out Starlink connectivity across its fleet from 2027, bringing low-Earth-orbit satellite internet to the European ultra-low-cost airline market.

The airline said it would become the first European ultra-low-cost carrier to offer Starlink’s in-flight internet technology to passengers. The service is expected to provide high-speed, low-latency connectivity during flights.

The move is significant because high-quality in-flight internet has often been treated as a premium service or a paid add-on, rather than a standard feature for low-cost travel. Wizz Air said passengers should not have to choose between affordable fares and reliable onboard connectivity.

The rollout would place Wizz Air among a growing group of airlines using Starlink to upgrade in-flight internet. Several full-service and hybrid carriers have already announced or begun Starlink deployments, but low-cost airlines have been more cautious because of installation, operating, weight and fuel-cost concerns.

Wizz Air’s decision suggests that satellite-based connectivity is moving beyond premium cabins and long-haul carriers into mass-market aviation. If implemented across the fleet, the service could change passenger expectations for affordable short- and medium-haul travel.

Ian Malin, Wizz Air’s Chief Commercial Officer, said ultra-low-cost travel has been about making opportunities accessible to more people and that the airline now wants to extend that approach to connectivity.

Starlink, operated by SpaceX, uses low-Earth orbit satellites to provide broadband connectivity with lower latency than traditional satellite internet systems. Its growing use in aviation reflects the wider expansion of satellite internet into transport, consumer connectivity and digital infrastructure markets.

Why does it matter?

The story matters because Starlink is helping shift in-flight connectivity from a premium airline feature towards a broader digital access expectation. If ultra-low-cost carriers can offer reliable satellite internet without undermining their fare model, connected air travel could become more common across short- and medium-haul routes. The move also shows how low-Earth-orbit satellite networks are expanding into mainstream transport infrastructure, not just for rural broadband or emergency connectivity.

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New York passes child protection law targeting AI companion chatbots

New York State has approved legislation aimed at strengthening protections for minors interacting with AI chatbots, marking one of the first targeted regulatory efforts focused on AI companion technologies. The bill, known as S9051B, introduces restrictions on chatbot features that may encourage harmful emotional dependence or unsafe behaviour among young users.

The law prohibits AI systems from presenting themselves as real or fictional human beings in ways that could mislead minors and restricts outputs that encourage self-harm, disordered eating or other harmful behaviour. The legislation specifically targets design features that may foster emotional dependency between children and AI systems, reflecting growing concerns over their potential psychological effects.

Sponsored by Senator Kristen Gonzalez and Assemblymember Alex Bores, the legislation was developed in consultation with New York Attorney General Letitia James and child safety organisations, including Common Sense Media. Supporters of the bill argue that rapid advances in AI have outpaced existing safeguards, leaving young users vulnerable to emerging risks.

Supporters say the measure is part of a wider push for responsible AI governance in New York, focusing on transparency, accountability, and consumer protection. Advocacy groups involved in developing the legislation have pointed to real-world cases as evidence of the need for stronger oversight of emotionally interactive AI systems.

Why does it matter?

AI companion applications are becoming increasingly sophisticated and capable of sustaining long-term, emotionally engaging interactions with users. While these systems may provide entertainment, companionship or support, concerns have emerged about their potential influence on children and other vulnerable users.

By focusing on chatbot design features rather than solely on content moderation, New York’s legislation introduces a new approach to AI governance that could influence future regulatory efforts in the United States and beyond. The law also reflects growing attention to the psychological and social impacts of generative AI systems.

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India targets dark patterns with fines for PhysicsWallah and McAfee

India’s Central Consumer Protection Authority has fined PhysicsWallah and McAfee Software India for using dark patterns that the regulator said misled consumers and influenced their choices on digital platforms.

PhysicsWallah was fined ₹5 lakh, while McAfee was fined ₹1 lakh. Both companies were directed to remove the practices from their platforms and ensure that users can make informed choices without pressure or manipulation.

The action was taken under the Consumer Protection Act 2019, the Consumer Protection (E-Commerce) Rules 2020, and the Guidelines for Prevention and Regulation of Dark Patterns 2023.

In the PhysicsWallah case, the regulator found that a ₹10 donation to the PW Foundation was automatically selected during checkout and added to the total payable amount without the consumer’s explicit consent. Users were also shown emotional messages related to children’s education, healthcare, and marriages that encouraged them to keep the donation selected.

The CCPA also found that courses advertised as free could only be accessed after users shared personal information such as a mobile number and email address. The regulator said the content remained the same across user accounts, indicating that mandatory data collection was not necessary to access the courses.

The authority identified basket sneaking, confirm shaming, and forced action in the PhysicsWallah case. It also said the practices raised serious consumer protection concerns because many users on the platform are students, including minors.

In the McAfee case, the CCPA found that users deciding whether to renew subscriptions were shown options such as ‘Renew Now’ and ‘Accept Risk’. The authority said the wording portrayed non-renewal as a risky decision and created pressure on consumers to continue their subscriptions.

The regulator identified confirmation shaming, interface interference, trick questions, and forced action in McAfee’s renewal process, saying consumers should be able to make subscription decisions freely and without fear-based messaging or misleading design.

The CCPA said the orders form part of its continued action against dark patterns in digital marketplaces. It reiterated that consumer consent must be explicit, informed, and free from manipulative design practices.

Why does it matter?

The penalties show that dark pattern rules in India are moving from guidance to enforcement. By targeting pre-selected donations, emotionally loaded opt-out messages, forced data sharing, and fear-based subscription renewal design, the CCPA is signalling that manipulative interface design can be treated as a consumer protection violation, not just a poor user experience.

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UK regulator launches AI-assisted review of gambling advertising

The UK Gambling Commission has announced a new compliance initiative targeting gambling advertising, following an enforcement notice issued by the Committee of Advertising Practice (CAP). The measure aims to prevent gambling advertisements from having a strong appeal to people under 18.

From 11 June, CAP will conduct a monitoring exercise using its AI-powered Active Ad Monitoring System in collaboration with social media platforms. The review will assess whether gambling advertisements comply with rules intended to protect children and other vulnerable audiences.

Under the enforcement notice, businesses found to be in breach of the rules may be required to amend or remove advertisements without delay. Failure to comply could lead to sanctions, including referrals to hosting platforms or the Gambling Commission.

The Gambling Commission said operators must ensure that all advertising, including content published on social media, remains socially responsible and complies with CAP and Broadcast Committee of Advertising Practice (BCAP) requirements.

Why does it matter?

Regulators are increasingly using AI tools to monitor online advertising at scale, particularly in areas where consumer protection concerns are significant. Gambling advertising remains a sensitive issue because of its potential impact on children and other vulnerable groups.

The initiative signals a more proactive approach to enforcement, combining automated monitoring with platform cooperation to identify problematic content more quickly and strengthen compliance with advertising standards.

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UK Ofcom sets out AI safety and innovation strategy

Ofcom has outlined its approach to enabling safe and secure AI adoption across the UK communications sectors it regulates and within its own work.

The regulator said its approach is technology-neutral and outcomes-based, aligning AI oversight with its wider mission of making communications work for everyone while supporting innovation and growth.

Ofcom’s report uses case studies to show how AI is already shaping regulatory work and the sectors it oversees. Planned and recent initiatives include building a pilot data lake to make spectrum licensing and online safety data more accessible, engaging with innovators to identify regulatory uncertainty, and assessing public trust in AI chatbots.

The regulator is also examining the impact of AI on telecoms customer experience, exploring AI deployment in broadcasting, assessing AI use in cybersecurity for telecommunications networks, and considering how AI could support network management and optimisation.

Alongside innovation support, Ofcom said it is monitoring AI-related risks and emerging harms. Its work includes guidance on technology-led mitigation against deepfakes, research into chatbot-related harms, and action to address risks posed by AI systems to users.

Ofcom said it coordinated with the AI Security Institute and the National Cyber Security Centre to brief stakeholders on the frontier AI cybersecurity implications following Anthropic’s preview of Claude Mythos, which caused concern. It also said it launched a formal investigation into X’s Grok chatbot.

The regulator is also piloting responsible AI use internally, including tools to support policy development, research, consultation processes, tracking of technical standards, and operational efficiency. Ofcom said it will take a safety-first approach and roll out internal AI tools only once it is confident they are safe and secure.

Why does it matter?

Ofcom’s approach shows how AI governance is becoming operational inside sector regulators, not only debated at the government level. The strategy links innovation support with risk monitoring across online safety, telecoms, broadcasting, cybersecurity, spectrum management, and consumer protection. It also shows regulators experimenting with AI in their own workflows while trying to maintain safety, accountability, and public trust.

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France fines Shein over consumer protection breaches

France’s consumer watchdog has imposed two administrative fines on companies linked to Shein after finding consumer protection and environmental disclosure breaches on the retailer’s French website.

The Directorate General for Competition, Consumer Affairs and Fraud Control said an investigation carried out in 2025 on fr.shein.com found failures linked to the right of withdrawal, environmental product information, and order confirmation requirements.

Infinite Styles Ecommerce Co Limited, the seller of Shein-branded products on the French site, was fined €5.76 million. The investigation found that consumers were unable to cancel purchases under the legally required withdrawal procedures. It also found missing information on product traceability and the presence of plastic microfibres in certain textile products.

The watchdog said consumers must be informed when textiles containing more than 50% synthetic fibres release plastic microfibres into the environment during washing.

A second company, Infinite Styles Services Co Limited, which operates fr.shein.com, was fined €16.73 million for non-compliant order confirmations. The DGCCRF said confirmations sent to consumers were missing mandatory information, including the price of goods, delivery dates or deadlines, seller identity and contact details, legal guarantees, mediation options, and withdrawal forms and rights.

French authorities said the missing information weakened consumer protection by making it harder for customers to exercise rights such as cancelling purchases or seeking refunds.

Why does it matter?

The penalties show how consumer protection enforcement is increasingly targeting cross-border e-commerce platforms over both purchasing rights and environmental transparency. For fast-fashion platforms, compliance is no longer only about prices and delivery terms, but also about product traceability, withdrawal rights, order documentation, and disclosures on environmental impact.

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US SEC outlines roadmap for market growth, digital assets and investor protection

The US Securities and Exchange Commission (SEC) has released a draft strategic plan outlining its priorities for the coming years, with a focus on investor protection, market efficiency and capital formation.

The agency is seeking public feedback on the proposal, which also highlights the growing importance of digital assets and emerging technologies within the financial system.

Under the plan, the SEC aims to modernise its regulatory framework by supporting innovation while maintaining market integrity. Among its objectives is the development of a clearer and more consistent regulatory approach to digital assets and distributed ledger technologies, with the aim of providing businesses and investors with greater certainty.

The regulator also intends to strengthen engagement with market participants and review existing rules to improve compliance and effectiveness. The draft plan states that enforcement should focus on fraud, market manipulation and violations of existing laws, rather than relying on expansive interpretations of regulatory authority.

Technology modernisation is also a key component of the strategy, including plans to upgrade legacy systems and expand the use of technologies such as AI and blockchain. According to the SEC, these improvements could enhance oversight capabilities, reduce operational costs, and improve efficiency across the agency.

Why does it matter?

The SEC plays a central role in regulating the world’s largest capital market, making its approach to digital assets and emerging technologies influential beyond the United States. Greater regulatory clarity could affect how businesses develop blockchain-based services, how investors engage with digital assets and how other jurisdictions shape their own regulatory frameworks.

The proposal also signals a broader shift towards integrating AI and advanced technologies into financial supervision, reflecting growing efforts by regulators to adapt to increasingly digital and technology-driven markets.

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Hong Kong details rules on online advertisements

Hong Kong’s government has said existing laws cover deceptive online advertisements, including scam-related content, misleading trade practices, and false claims in regulated sectors.

The written reply was issued in the Legislative Council on 3 June in response to a question about pop-up advertisements, programmatic advertising, and AI deepfake scams.

The government said the Trade Descriptions Ordinance prohibits false or misleading descriptions of goods or services, including in advertisements and on online platforms. Traders engaging in bait advertising or other prohibited conduct can face up to five years in prison and a fine of HK$500,000.

The reply also said online advertisements involving deception may fall under the Theft Ordinance. Fraud carries a maximum penalty of 14 years in prison, while obtaining property by deception carries a maximum penalty of 10 years.

Advertisements for specific sectors, including real estate, education, securities, and banking, are also subject to separate laws prohibiting false or misleading claims.

Hong Kong police have been working with online platform operators and conducting regular online patrols. In 2025, police asked social media platforms to remove or review more than 116,000 scam-related pages or accounts.

The government also pointed to Scameter and Scameter+, its scam and pitfall search tools. New features introduced in October 2025 use AI to analyse suspicious website links and web page screenshots reported by the public, and to detect potential scam domain names. Within five months, the tools proactively identified more than 900 fraudulent webpages, while Scameter+ issued more than 320,000 alerts in the first quarter of 2026.

Why does it matter?

The reply shows how Hong Kong is using existing consumer protection, fraud, and sector-specific laws to address online advertising risks, rather than introducing a dedicated online advertising regime for now. The inclusion of AI deepfake scams and AI-assisted Scameter+ detection also highlights how online advertising, platform governance, fraud prevention, and automated enforcement tools are increasingly interconnected.

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