Published by Global Banking & Finance Review
Posted on November 11, 2026
· Last updated: November 11, 2026
EU Proposes Significant Fines for Unfair Online Trade Practices in New Draft Law
Overview of the European Commission's Digital Fairness Act
By Foo Yun Chee and Bart Biesemans
Introduction to the Draft Law and Its Implications
BRUSSELS, Nov 11 (Reuters) - Companies resorting to unfair digital trade practices to push people to buy more or target children with personalised advertising risk fines of as much as 6% of their annual global turnover under a new European Commission draft law.
"Our consumer protection rules will help ensure that businesses compete on the merits of their products and services, not on their ability to exploit consumers or their ability to evade the rules," said EU justice chief Michael McGrath.
"We are not making it harder to do business, we are making it harder to do business unfairly," McGrath told a press conference on Wednesday.
Key Provisions and Criticisms of the Digital Fairness Act
The proposed Digital Fairness Act (DFA) aims to give consumers more rights but has been criticised by some businesses because of overlaps with existing laws and a proposed plan to keep children safe from online dangers.
The DFA, part of a crackdown requiring Big Tech and online platforms to do more to police their platforms, will need to be agreed with European Union countries and the European Parliament in the coming months before it can become law.
The proposed law wants to ban dark patterns and tackle addictive designs of digital products and misleading influencer marketing, pricing practices and subscription traps, which the Commission said cost consumers billions of euros yearly.
(Reporting by Foo Yun Chee; Editing by Bart Meijer and Alexander Smith)
Key Takeaways
- Proposed Digital Fairness Act (DFA) targets dark patterns, addictive design, influencer marketing, unfair personalisation, subscription traps and opaque pricing, aiming to strengthen consumer rights online. (europarl.europa.eu)
- Fines of up to 6% of a company’s worldwide annual turnover could be imposed for serious violations, enforceable by national authorities or directly by the Commission in cross-border cases. (digitalfairnessact.squarespace.com)
- The DFA is set to replace and update the Unfair Commercial Practices Directive with a directly applicable Regulation, streamlining rules and reducing regulatory fragmentation across the EU. (hlc.com)
References
- Digital Fairness Act | Legislative Train Schedule
- Digital Fairness Act (DFA) | EU Tracker
- EU Digital Fairness Act: Leaked draft Regulation proposes significant reform of the EU consumer protection framework
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