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EU digital fairness proposal targets loot boxes and hard-to-cancel subscriptions

The proposed regulation would replace the bloc’s 2005 consumer practices directive and apply to traders targeting EU consumers, wherever they are based.

By Tomasz Lindqvist

Illustration of subscription controls and a game interface on a computer screen
Photo: TNW (Financial Times)

The European Commission has put forward a Digital Fairness Act that would bar minors from buying paid loot boxes and require online services to make subscriptions easier to end. The proposal also targets deceptive interface designs and features that encourage compulsive use.

Subscription providers would have to obtain active acceptance before converting free trials into paid plans. Renewal reminders and an online cancellation process requiring only a few clicks would be mandatory, while consumers would retain the right to contact a human.

For gaming, the proposal would prohibit paid loot boxes for under-18s, require disclosure of their odds and give all players a way to disable them. Virtual currencies would have to display their value in real money and remain switched off for minors unless a parent consents. Minors would also be excluded from pay-to-win and pay-to-progress mechanics.

A general ban on manipulative design would sit alongside a list of practices prohibited in all circumstances. Euronews, which examined the proposal before publication, identified ten such practices, including false claims of limited stock and add-ons selected beforehand. The Commission could expand the list without reopening the law.

Users would gain controls to disable features designed, or reasonably expected, to promote compulsive use. Profiling-based advertising would be prohibited if directed at minors or if it harmfully exploits sensitive personal data. Personalized pricing would be barred where it could harm minors or vulnerable consumers.

Influencers would be required to identify commercial material, with brands and agencies sharing responsibility for nondisclosure. The legislation now moves to the European Parliament and member states for consideration.

Separately, proposed changes to consumer protection cooperation rules would allow the Commission to investigate major cross-border infringements itself. According to Euronews, fines could reach 6% of global turnover.

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