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The European Commission has proposed new rules to ban practices that mislead consumers during online shopping and allow fines of up to 6 percent of global annual turnover for companies that violate consumer rights.
The Commission shared its proposals to update the Digital Fairness Act and the Consumer Protection Cooperation Regulation, which aim to strengthen consumer protection online.
The goal is for people shopping online to receive the same level of protection as those shopping in physical stores.
Practices that mislead consumers or pressure them into buying unwanted products would be prohibited. This includes deceptive tactics such as displaying false warnings that products are about to sell out.
Online pricing would become more transparent. Product prices must be clearly displayed when consumers pay with virtual currencies, such as those used in video games.
For dynamic pricing at concerts and sporting events, consumers waiting in virtual queues would be shown the current price and the highest price that may be charged.
Digital platforms would be allowed to disable features that encourage users to overspend or could lead to addiction. Gambling-like practices that let users gain advantages or progress in digital games in exchange for payment would be banned to prevent children from spending excessively.
Unfair personalized advertising and pricing practices that target children or exploit sensitive personal data would also face restrictions.
Social media influencers would be required to clearly disclose when products and services they promote for payment are advertisements.
The proposal would make canceling digital subscriptions easier. It aims to prevent problems arising from unwanted automatic renewals and from free trial periods converting into paid subscriptions.
Consumers would gain the right to communicate with a real person when dealing with customer service. Consumer rights would also be safeguarded when artificial intelligence tools make purchases on consumers' behalf.
In cases of widespread violations of consumer rights, the Commission would be granted the authority to launch investigations and impose fines directly. Companies that break the rules could face fines of up to 6 percent of their global annual turnover.
Cooperation among consumer protection agencies in member states would be strengthened to allow faster intervention in cross-border violations.
Companies based outside the EU would be required to appoint a legal representative within the bloc to facilitate cooperation with authorities in investigations related to consumer rights.
For the regulations to enter into force, the European Parliament and the Council of the EU must negotiate and approve them.
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