EU proposes tougher rules for online shopping, with fines of up to 6% of global turnover
The European Commission has proposed stricter rules for online shopping, including fines of up to 6% of a company's global annual turnover for serious violations of consumer rights.
The proposals aim to update the Digital Fairness Act and the Consumer Protection Cooperation Regulation, bringing online consumer protection closer to the standards applied to traditional shops.
The measures target misleading sales practices, unclear pricing, unfair advertising and digital services designed to encourage excessive spending.
Crackdown on misleading sales tactics
Under the proposed rules, online retailers would be prohibited from using deceptive techniques to pressure consumers into making unwanted purchases.
These include false warnings suggesting that products are about to sell out, as well as other misleading sales tactics.
Pricing transparency would also be strengthened. Companies would have to clearly display the cost of products purchased using virtual currencies, including those used in video games.
For concerts and sporting events, consumers waiting in virtual queues would be informed of the current ticket price and the maximum amount they could be charged.
The proposals would also allow digital platforms to disable features that encourage excessive spending or potentially addictive behaviour.
In addition, gambling-like practices in digital games that allow users to pay for advantages or faster progress would be prohibited to protect children from excessive spending.
Restrictions would also apply to personalised advertising and pricing practices that target children or exploit sensitive personal information.
Social media influencers would be required to clearly identify paid promotions as advertisements.
Easier subscription cancellations
The Commission also wants to make cancelling digital subscriptions simpler, addressing problems involving unwanted automatic renewals and free trials that automatically turn into paid services.
Consumers would gain the right to speak directly with a real person when contacting customer service.
The proposed rules would also protect consumers when artificial intelligence tools make purchases on their behalf, ensuring that existing consumer rights remain applicable.
Stronger enforcement and tougher penalties
The proposals would give the European Commission stronger powers to investigate widespread violations of consumer protection rules and impose penalties directly.
Companies found breaking the rules could face fines of up to 6% of their global annual turnover.
Cooperation between national consumer protection authorities would also be strengthened to allow faster action against businesses involved in cross-border violations.
Companies established outside the EU would be required to appoint a legal representative within the bloc to facilitate communication and cooperation with European authorities during investigations.
Parliament and member states must approve the proposals
The proposed measures will now need to be negotiated and approved by the European Parliament and the Council of the European Union before they can enter into force.
If adopted, the new framework would introduce stricter obligations for online retailers, digital platforms, subscription services and social media influencers operating in the EU.
Source:AA
