EU proposes new rules to protect consumers online

Detailed summary

The European Union's executive body has announced a proposal to strengthen consumer protection online and make relevant laws for the digital age.

The European Union's executive body has announced a proposal to strengthen consumer protection online and make relevant laws for the digital age.

The Proposal for Digital Fairness Act presented by the European Commission on Wednesday includes new rules on digital contracts and subscriptions.

It requires businesses to provide clearer information before free trials end or subscriptions are automatically renewed.

It also includes a ban on manipulative marketing, or "dark patterns," such as "fake claims that a product is almost sold out that pressure consumers into purchasing decisions they might not otherwise make."

In cases of so-called dynamic pricing, companies will be required to ensure transparency by showing the highest possible price as well as the current price in real time.

Violations will result in fines of "up to 6 percent of a company's worldwide annual turnover."

Henna Virkkunen, executive vice-president for tech sovereignty, security and democracy, said in a statement, "This reform will make everyday life simpler, fairer and safer for consumers."

The proposal is to be discussed by the European Parliament and Council.

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