EU threatens heavy fines for unfair online trade practices: what to know - The News International
Under a new European Commission draft law, companies engaged in utilizing deceptive digital practices to push people to buy more or target children face sanctions of as much as 6% of their annual global turnover.
EU justice chief Michael McGrath said in statement: βOur consumer protection rules will βhelp ensure that businesses compete on the merits β of their products and services, not on their ability βto exploit consumers or their ability to evade the βrules.β
The proposed Digital Fairness Act (DFA) seeks to provide consumers with more rights but has been facing industry backlash due to overlaps with existing laws and proposed digital safety strategy for minors.
The DFA is a part of a new mandate requiring Big Tech and online platforms to do more to monitor their platforms and it will require it to be agreed upon by European member countries and the European Union Parliament in the coming months.
Nonetheless, the proposed law regulates deceptive design and algorithmic engagement and misleading influencer marketing, pricing practices that the Commission said cost consumers billions of euros annually.
