(Nov 11): The European Union is debuting a new plan designed to curb practices that manipulate people into spending more time and money online.

The EU’s executive branch, the European Commission, presented a proposal on Wednesday (Nov 11) for stronger consumer protection rules called the Digital Fairness Act. The measures would give people the ability to switch off online features that encourage compulsive or excessive use, levying fines on companies that violate the rules. 

After years of regulating tech companies over issues like antitrust and privacy, EU enforcers are now targeting the key tactics that online platforms use to attract billions of consumers and keep them hooked. These restrictions could have a major impact on the largest social media firms — Google’s YouTube, Meta Platforms Inc’s Instagram and ByteDance Ltd’s TikTok — as well as e-commerce services and artificial intelligence chatbots.

The latest rules would also outlaw “dark patterns" in online sales, design features that nudge or trick consumers into making unwanted choices. These practices can include telling prospective buyers that a product is almost sold out or making it difficult to cancel a subscription. 

The new measures could also impact AI bots that encourage users to continue interactions. 

“We are making it absolutely clear that false claims about the scarcity of a product or service are a dark pattern and therefore are not allowed,” Michael McGrath, the commissioner in charge of consumer protection, told reporters.

Bloomberg reported the commission’s plans earlier this week.

Alongside the new rules, the EU is claiming new powers to enforce consumer protection rules directly when breaches affect two-thirds of the bloc’s population. Currently, national regulators handle consumer protection violations.

In certain cases, the commission could fine companies as much as 6% of their global annual sales. Smaller businesses would be excluded from direct enforcement, according to the commission.

The new proposals will need to be negotiated and approved by European lawmakers and could significantly change before they are passed into law.

Uploaded by Arion Yeow