Companies risk fines of 6% global turnover for unfair digital trade practices: EU draft law
It’s Europe’s latest push to get Big Tech to do more to police content on their platforms
The European Commission has drafted legislation known as the Digital Fairness Act (DFA), which would impose fines of up to 6 percent of a company's annual global turnover for unfair digital trade practices. Companies found guilty of using deceptive or manipulative interface designs, often referred to as "dark patterns," on websites and apps that steer consumers into purchasing more, could face these substantial penalties.
The proposed legislation also aims to ban personalized advertising targeting children or vulnerable consumers. Additionally, the DFA seeks to increase transparency in dynamic pricing schemes and require companies to provide users the option to disable addictive features that encourage compulsive or excessive usage. While the commission's Justice chief, Michael McGrath, will present the DFA on Wednesday, the legislation still needs to be negotiated with EU countries and the European Parliament before it can take effect.
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