EU proposal targets loot boxes, influencers and addictive design

By Sophie Lindqvist

Companies that violate the EU’s proposed Digital Fairness Act could face fines of up to 6% of worldwide annual turnover if the draft becomes law.

The European Commission published the proposal on Wednesday as part of a fresh wave of European Union rules intended to make online experiences fairer. The draft targets practices that exploit consumers into spending more time or money, with provisions reaching gaming, social media and e-commerce.

“The Act will protect consumers of all ages shopping and browsing for goods or services online,” the European Commission said. “It will also mean fairer competition for businesses, which are expecting to save EU consumers up to €13.7 billion ($15.1 billion) a year.”

What changes for interface designers?

The proposal would make several recurring interface behaviors explicit compliance requirements:

• A ban on manipulative marketing and “dark patterns,” including false scarcity messages such as claims that a product is almost sold out.
• A choice for consumers to turn off addictive features, including persistent prompts, endless scrolling and video autoplay.
• Restrictions on addictive design would also apply to “AI companions and general conversational chatbots.”
• A prohibition on gambling-like features that encourage overspending, including pay-to-win and pay-to-progress mechanics for minors.
• Clear disclosure of influencer advertising, plus safeguards intended to stop influencers from exploiting children’s trust.
• Limits on unfair personalized advertising and prices that target minors or take advantage of sensitive data.
• Simpler cancellation for subscriptions and digital contracts, with prompts before automatic renewals and free trials end.
• Clearer pricing for dynamic pricing and virtual in-app currency. During virtual queues for cultural and sports tickets, services would show the current price in real time and the highest possible price.
• A route to a human customer-service representative and clear consumer rights when an AI agent makes a purchase.

For product teams, these changes reach beyond visual preference. The opt-out must behave like a power switch, not a lower-volume control: once a user turns off a persistent prompt, endless scrolling or video autoplay, that behavior stops.

The proposal also governs renewal notices, cancellation and rights when an AI agent makes a purchase. For users, the intended effects are fewer compelled interactions and clearer decisions at renewal, purchase and support.

Which services could feel the largest effect?

The proposal could have a significant effect on major parts of the online digital market, beyond checkout screens and game loot boxes. Its scope includes the “rabbit hole” algorithms across YouTube, TikTok and Meta, as well as AI chatbots and apps such as Duolingo that repeatedly nudge users to keep interacting.

Why have gaming groups objected?

Some gaming organizations have already criticized the draft. Their objection centers on its treatment of virtual currencies, loot boxes and micro-transactions offered to minors. They call those restrictions “unworkable, unjustified and disproportionate.”

What happens before this becomes law?

The Digital Fairness Act, or DFA, remains a draft. It must complete various approvals through the European Parliament and the Council of the European Union. Lawmakers could change or remove individual measures entirely. The 6% turnover penalty therefore remains conditional rather than an enforceable sanction.

In remarks following publication, European Union Commissioner Michael McGrath said: “Our consumer protection rules will help ensure that businesses compete on the merits of their products and services—not on their ability to exploit consumers or evade the rules.”

He added: “We are not making it harder to do business. We are making it harder to do business unfairly.” He concluded: “We cannot have 21st-century consumers protected by rules that have not kept up with the 21st-century economy.”

For designers and developers, the practical test is clear if the draft survives review: engagement loops must be interruptible, sponsorship visible, renewal cancellation straightforward and purchase pricing legible before commitment.