EU consumer protection laws in need of reform, reveals EU Commission’s Digital Fairness Fitness Check

The European Commission's Digital Fairness Fitness Check, published on Thursday (3 October) reveals that while EU consumer protection laws remain vital, new digital challenges like dark patterns and targeted ads demand urgent reform to safeguard consumers online.

The Fitness Check is a thorough review, assessing how well certain EU laws have met their goals. It helps identify overlaps, inconsistencies, and areas for digital improvement within existing regulations.

The review focused on three key directives: The Unfair Commercial Practices Directive protects consumers from misleading or aggressive business practices; the Consumer Rights Directive ensures clear information and rights for consumers in online and distance sales; and the Unfair Contract Terms Directive prevents businesses from imposing unfair terms in contracts with consumers.

The findings show, according to the Commission, that while these laws are still necessary and relevant for protecting consumers online, new challenges have emerged due to how consumers behave differently online and how businesses use technology to influence them.

The Commission gathered public input through various consultation activities, including public consultation and a Call for Evidence, which is a public request by the Commission for feedback and information to help shape and improve future policies or regulations.

Concerns

The report highlights issues like manipulative online designs, also known as dark patterns, which pressure consumers into making decisions, such as false urgency claims. It also points out that addictive design in digital services, such as video games with gambling-like features, push consumers to spend more time or money.

Another concern is the use of targeted ads that exploit consumers’ vulnerabilities, such as their financial struggles or mental health. The review also found that companies often make it difficult for consumers to cancel subscriptions, and social media influencers sometimes engage in deceptive promotions.

These harmful online practices cost EU consumers an estimated €7.9 billion each year, while businesses face much lower costs to comply with EU laws, not exceeding €737 million per year. The report also highlighted the fragmentation of national laws, which weakens consumer protection across the EU.

Next steps

To address these issues, the Commission plans to improve the rules, especially around dark patterns, and simplify enforcement to ensure a fairer digital environment for consumers. These changes will be part of the Commission’s upcoming agenda.

The Fitness Check outlines the current state of EU consumer protection laws and identifies areas that need improvement, but it does not make specific recommendations for future actions.