The European Commission proposed on Wednesday to give itself power to fine companies up to 6% of worldwide annual turnover for large cross-border breaches of new EU consumer rules. The proposal, named the Digital Fairness Act, would update EU consumer protection rules so consumers receive the same level of protection online as offline.

It would prohibit manipulative marketing practices known as dark patterns (interface designs that steer consumer choices) and give consumers the option to disable addictive design features online. These provisions would cover consumers of every age, not only minors.

What would count as a prohibited dark pattern?

False claims that an item is nearly out of stock would fall within the proposed ban. Michael McGrath, the European commissioner responsible for consumer protection, said: “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.” Bloomberg reported McGrath’s remarks to reporters.

How would prices and in-app purchases be presented?

Price display rules would extend to purchases made with virtual in-app currencies, requiring companies to show prices clearly. At cultural and sports events, virtual queues would have to display both the current price and the highest possible price in real time under the proposed rules for dynamic pricing (changing prices).

Which protections would focus on minors?

The Commission would ban gambling-like features for minors, including pay-to-win and pay-to-progress mechanics. It would also prohibit paid loot boxes for people under 18, according to The Next Web.

Influencers would have to disclose commercial content. Personalized advertising and prices would face restrictions when they target minors or take advantage of sensitive data.

How would subscriptions and automated purchasing change?

Subscriptions would become easier to cancel, and unwanted automatic renewals would end. Free trials could not turn into subscription traps.

The proposal would define consumer rights when an AI agent (automated purchasing software) makes a purchase on their behalf. Consumers would also be entitled to speak with a person in customer service.

How would large cross-border violations be enforced?\n

The Commission proposed revising the Consumer Protection Cooperation Regulation to strengthen cross-border enforcement. The revision would allow the Commission to investigate large-scale cases with a major impact across the EU Single Market, the bloc’s internal market. It would also permit fines of up to 6% of worldwide annual turnover in those cases.

Companies outside the EU would have to appoint a legal representative within the bloc. The Commission would use its direct powers when violations touch two-thirds of the EU’s population. National regulators would continue handling such violations under the existing framework, according to Bloomberg.

The threshold would concentrate Commission action on the largest cross-border cases. Smaller businesses would remain outside the Commission’s direct-power route, according to Bloomberg.

What is the financial case, and what happens next?

The Commission estimates that the proposals could save EU consumers up to €13.7 billion ($15.3 billion) every year. The European Parliament and the Council will now discuss the package. Bloomberg reported that the proposals could change significantly before becoming law.

The €13.7 billion annual savings estimate accompanies proposed controls across retail interfaces, digital currencies, subscriptions, influencer content and automated purchasing. The Commission’s package therefore links consumer-facing design rules with market-wide enforcement powers.

The Commission’s Digital Fairness Act package addresses both online design and cross-border enforcement. It would define prohibited practices, disclosure duties and consumer remedies while creating a route to turnover fines for large cases. Those elements would operate through the proposed act and the revised cooperation regulation.