Digital Fairness Act: protecting consumers from unethical techniques and commercial practices

The way consumers interact with online platforms is changing rapidly. Recognising this shift, the European Commission has already introduced key legislation like the Digital Markets Act (DMA) and Digital Services Act (DSA) to promote fair competition and secure digital spaces for users. However, stronger protections are necessary with the rise of manipulative digital tactics and the increasing threats to consumer autonomy. Building upon existing EU consumer laws, the European Commission is expected to present a new Digital Fairness Act (DFA). This piece of legislation aims to combat a range of harmful online tactics, from dark patterns and addictive design features to exploitative targeted advertising practices.

While the Act is still in its early stages, recent updates confirm it will not be presented before early 2026. The European Commission will launch a 12-week public consultation in spring 2025, followed by a thorough impact assessment. Additionally, a new inquiry into the broader impact of social media on well-being is expected to influence the DFA’s development.

Furthermore, the 2025 Commission Work Programme places consumer protection and digital regulation, as two of its legislative priorities. As part of its commitment to a “bolder, simpler, faster” Union, the European Commission has underlined the need to modernise consumer protection laws.

Curious about the latest details on this upcoming legislation? Read on to learn more!

What is the Digital Fairness Act?

The expected Digital Fairness Act likely seeks to strengthen European online consumer protection rules by tackling unethical techniques and commercial practices and strengthening consumer rights.

More specifically, the Act will likely focus on:

• Dark patterns in online interfaces, which could influence consumer decision-making (more explanation on dark patterns below);
• Addictive digital service designs, which lead consumers to spend more time and money on services;
• Exploitative targeted ads and online profiling, which could take advantage of consumer vulnerabilities for commercial purposes;
• Difficult subscription cancellation mechanisms;
• Problematic commercial practices and marketing by social media influencers.
• Greater transparency on algorithmic decision-making, ensuring consumers understand how their data is used;
• Stronger enforcement mechanisms, including centralised powers for the European Commission to act against violations.

The evolution of the Digital Fairness Act

The beginning: the New Consumer Agenda

The story begins on 13 November 2020, when the European Commission published its New Consumer Agenda outlining a vision for EU consumer policy from 2020-2025. It tackled, among other things, the digital transformation and the enforcement of consumer rights. The Agenda notes for example that “commercial practices that disregard consumers’ right to make an informed choice, abuse their behavioural biases, or distort their decision-making processes, must be tackled”.

Such practises comprise the use of ‘dark patterns’, which are user-interface designs aimed at manipulating consumers. Moreover, they include certain personalisation practices based on profiling, hidden advertising, fraud, false or misleading information and manipulated consumer reviews. The document highlights that after updating the guidance documents on the applicability of consumer law instruments like the Unfair Commercial Practice Directive and Consumer Rights Directive, the Commission plans to analyse whether additional legislation or other actions were needed.

Within the Council Conclusions on the New Consumer Agenda, Member States called for the setting of a clear responsibility and liability framework for online platforms. This includes adopting appropriate measures to efficiently address fraudulent, unfair and misleading commercial practices and selling of non-compliant and dangerous goods and services through online platforms. Additionally, they underline the importance of identifying illegal online commercial practices.

 

Parliament’s resolution on addictive design of online services

On 12 December 2023, the European Parliament adopted the ‘Resolution on addictive design of online services and consumer protection in the EU Single Market’. This resolution further shaped the legislative and political debate around manipulative online designs and practices.

The resolution highlighted the risks posed by manipulative and addictive digital practices, such as infinite scrolling, autoplay, and hyper-personalised recommendations. These designs exploit psychological vulnerabilities to maximise user engagement, which could lead to significant mental health and societal impacts. Young adults and children are particularly vulnerable. The resolution called, among other things, for additional consumer protections regarding addictive design on digital platforms.

 

Digital Fitness Check

The European Commission launched a public consultation in November 2022 to review the digital fairness of existing EU consumer laws: the Unfair Commercial Practices Directive, the Consumer Rights Directive, and the Unfair Contract Terms Directive.

Afterwards, the Commission gathered all the input into a final Digital Fairness Fitness Check report on 3 October 2024.

The report highlights the emergence of new challenges such as dark patterns, data-driven manipulation, and personalised advertising, which undermine consumer choice and trust. While the current framework provides a foundational level of protection, gaps in enforcement, legal uncertainty, and the inadequacy of existing laws to address newer technologies like AI and algorithmic decision-making are significant concerns. The evaluation suggests targeted updates to ensure effective protection and legal coherence across Member States.

The report also notes that the fragmentation of national laws, insufficient enforcement, legal uncertainty, and a lack of incentives all act as barriers for businesses seeking to adopt higher standards of protection. Accompanied by the report were also studies to support the Fitness Check.

The Commission states that they will propose specific measures, with “reflections towards a Digital Fairness Act” to tackle the addressed challenges of the Digital Fairness Check. It is important to note that the report is an evaluation and not a legislative proposal. Neither does it establish recommendations on the format and content of future Commission action.

What is the current status of the Digital Fairness Act?

The Digital Fairness Act (DFA) is currently in the consultation and preparatory phase, with no formal legislative text published yet. However, the European Commission’s 2025 Work Programme confirms that digital consumer protection is a legislative priority.

Commission President Ursula von der Leyen has tasked the Commissioner for Democracy, Justice and Rule of Law, Michael McGrath (Ireland) in his mission letter with leading the DFA.  This legislation should “tackle unethical techniques and commercial practices related to dark patterns, marketing by social media influencers, the addictive design of digital products and online profiling, especially when consumer vulnerabilities are exploited for commercial purposes.”

McGrath is also responsible for developing the Consumer Agenda for 2025-2030, focusing on protecting consumers and assessing the need to update current legislation and ensure enforcement. Additionally, he will be working on a new Action Plan for consumers in the Single Market to tackle unfair discrimination against consumers, ensuring benefits when they cross borders and are protected when buying goods or services.

 

The ongoing legislative debate

The DFA has sparked debate within EU institutions, particularly regarding how it will complement existing legislation such as the DSA and DMA. While some policymakers argue that current digital regulations already cover many aspects of digital fairness, a speaker from DG Justice during a Group hearing hosted by the European People’s Party (EPP) suggested that a dedicated framework is necessary to:

• Ensure harmonised enforcement across all Member States.
• Address loopholes in platform accountability that fall outside the scope of the DSA and DMA.
• Develop protective measures against vulnerabilities concerning unfair personalisation in terms of content.
• Introduce targeted actions against AI-driven deceptive commercial practices.

At the same time, business stakeholders have raised concerns about the potential compliance burden on SMEs and digital platforms. The Commission has indicated that the DFA will complement existing laws rather than impose redundant requirements, ensuring a streamlined and enforceable framework. It was highlighted that the Act is intended for the protection of consumers, and will comprise a part of the Commission’s competitiveness agenda. Additionally, it was made clear that the Commission will seek not to open recently adopted regulations as well as duplication – but rather focus on targeted interventions and areas of ‘uncertain’ legal interpretation. The final decision on enforcement will be shaped by the results of the public consultation and impact assessment.

What to expect in 2025 – 2026?

As the DFA progresses through its consultation and legislative drafting phases, businesses, consumers, and policymakers should prepare for regulatory changes affecting the digital marketplace.

The next 12 months will be crucial in shaping the final structure of the DFA, with key decisions to be made on:

• The extent of new enforcement powers
• The relationship between the DFA, DSA, and DMA
• Potential exemptions or tailored requirements for SMEs

Stakeholders across industry, civil society, and academia are encouraged to engage with the consultation process to ensure that the DFA strikes the right balance between consumer protection and innovation.

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Key upcoming dates:

• Spring 2025: A 12-week public consultation will be launched to collect feedback from industry stakeholders, consumer organisations, and policymakers.
• Q2 2025: An impact assessment will be conducted, examining different policy options for enforcement mechanisms and regulatory scope.
• Mid-2025: The European Consumer Summit will feature discussions on digital fairness, including the role of AI in consumer protection.
• Q4 2025: The Consumer Policy Advisory Group (CPAG) will review initial consultation findings, shaping the final proposal.

The final legislative proposal is expected in early 2026, though internal Commission discussions suggest that the timeline could shift depending on the results of the impact assessment and stakeholder feedback.