Following the publication of the Digital Fairness Fitness Check report on 3 October 2024, the European Commission plans to propose a Digital Fairness Act aimed at addressing key consumer protection issues in the online environment. The legislation will target digital practices such as the termination of subscription contracts, automatic subscriptions renewals, and the conversion of free trials into paid subscriptions.
The Digital Fairness Fitness Check highlighted persistent consumer challenges in the digital economy, such as manipulative interface designs, targeted exploitation of consumer vulnerabilities, difficulties in cancelling and renewing subscriptions, forced acceptance of unfair terms, and deceptive social media marketing. These issues reflect an increasing power imbalance between consumers and businesses, exacerbated by advanced digital tools and behavioural tracking. The report also found that consumers tend to pay less attention and process information differently online, while businesses employ increasingly sophisticated persuasion tactics, creating regulatory challenges.
Additionally, the report revealed that the effectiveness of three key EU directives on consumer protection is weakened by insufficient enforcement mechanisms. Despite improvements in cross-border coordination through the Consumer Protection Cooperation Network and collective redress options, enforcement remains inconsistent. Limited national and EU case law on digital applications has left consumer law underutilized, while authorities and plaintiffs face high risks and burdens of proof when pursuing compliance. Law-abiding businesses also lack clear guidelines and incentives to adopt a digital fairness by design approach. Moreover, the broad principles of existing EU directives fail to provide the legal certainty needed to address complex digital practices, increasing the risk of regulatory fragmentation as Member States adopt divergent laws on issues such as influencer marketing and digital subscriptions.
To shape the forthcoming Digital Fairness Act, the European Commission will conduct an impact assessment and launch a public consultation in 2025. These initiatives will inform a potential legislative proposal aimed at ensuring a fairer and more transparent digital marketplace.
