Companies risk fines of 6% global turnover for unfair digital trade practices, EU draft law shows

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AdvertisementAdvertisementBusinessEuropean Commissioner for Democracy, Justice, the Rule of Law, and Consumer Protection Michael McGrath arrives for the meeting of the college of European Commissioners in Brussels, Belgium, April 22, 2026. REUTERS/Omar HavanaFILE PHOTO: European Union flags are seen outside the EU Commission headquarters in Brussels, Belgium November 14, 2018. REUTERS/Francois Lenoir/File Photo10 Nov 2026 01:45AM (Updated: 10 Nov 2026 01:50AM) Bookmark Bookmark WhatsApp Telegram Facebook Twitter Email LinkedInAdd CNA as a trusted source to help Google better understand and surface our content in search results.Read a summary of this article on FAST.Get bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST BRUSSELS, Nov 9 : Companies found guilty of using unfair digital trade practices to push people to buy more or target children with personalised advertising risk fines of as much as 6 per cent of annual global turnover, according to a European Commission draft law seen by Reuters.The Commission's Justice chief Michael McGrath will present the proposed legislation known as the Digital Fairness Act (DFA) on Wednesday, which will need to be thrashed out with EU countries and the European Parliament before it can become law.The DFA is the latest legislative push by Europe to get Big Tech, e-commerce and social media giants to do more to police content on their platforms.It would ban so-called business-to-consumer "dark patterns" — deceptive or manipulative interface designs on websites and apps that steer people into buying more — as unfair commercial practices, the document said.Show MoreShow LessThe Commission also wants to ban personalised advertising targeting children or vulnerable consumers.Companies using dynamic pricing, where ticket prices fluctuate based on real-time demand and which has triggered criticism from consumers, will be required to be more transparent by disclosing the number of items available at the advertised price.Traders will have to give users the opportunity to switch off addictive features that encourage compulsive or excessive use, the document said.Finance Watch, which campaigns for the public interest in financial services rulemaking, said the proposed legislation does not do enough to protect consumers investing online."The proposals on dark patterns go in the right direction, but they lack ambition to sufficiently protect consumers in financial services," said Peter Norwood, senior research and advocacy officer at Finance Watch.Source: ReutersNewsletterWeek in ReviewSubscribe to our Chief Editor’s Week in ReviewOur chief editor shares analysis and picks of the week's biggest news every Saturday.Sign up for our newslettersGet our pick of top stories and thought-provoking articles in your inboxSubscribe hereGet the CNA appStay updated with notifications for breaking news and our best storiesDownload hereGet WhatsApp alertsJoin our channel for the top reads for the day on your preferred chat appJoin hereAlso worth readingContent is loading...Expand to read the full storyGet bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST