European Commission publishes the latest Digital Fairness Fitness Check
The evaluation reviewed three crucial EU directives and found them needing modernisation to effectively tackle these digital trends.
The European Commission’s Digital Fairness Fitness Check underscores the urgent need to reform the EU consumer protection laws due to emerging digital challenges. While current regulations remain significant, they must evolve to tackle issues such as manipulative online designs, known as ‘dark patterns,’ and exploiting consumer vulnerabilities through targeted advertisements.
This comprehensive evaluation reviewed three critical EU directives – the Unfair Commercial Practices Directive, the Consumer Rights Directive, and the Unfair Contract Terms Directive. Despite their continued importance, these laws need to address recent digital trends that manipulate consumer behaviour. Notable concerns include addictive designs in video games with gambling-like features and targeted ads exploiting financial and mental health vulnerabilities. Also, social media influencers sometimes engage in deceptive practices, further complicating the digital landscape.
The report reveals that these harmful practices cost EU consumers an estimated €7.9 billion annually, while the cost for businesses to comply with existing EU laws stands at €737 million annually. The disparity is exacerbated by fragmented national legislation, weakening consumer protection across the EU. To address these challenges, the Commission aims to refine regulations related to dark patterns and enhance enforcement strategies, fostering a fairer digital environment for consumers.
Why does it matter?
The Fitness Check does not provide specific recommendations. Still, it lays the groundwork for the Commission’s upcoming agenda to adopt consumer protection measures, ensuring they reflect the nature of the digital market and effectively safeguard consumer interests.