EU proposal targets loot boxes, dark patterns and influencer ads

The proposal would ban manipulative “dark patterns,” such as false claims that a product is nearly sold out. It would also require services to let users switch off features including persistent prompts, endless scrolling and video autoplay. The restrictions on addictive design would extend to AI companions and general conversational chatbots.

Other measures would curb practices that encourage overspending, including gambling-like pay-to-win and pay-to-progress features for minors. Influencers would have to disclose advertising clearly, and rules would aim to prevent them from exploiting children’s trust. The draft would also restrict personalised ads and prices that target minors or use sensitive data, and require clearer pricing for dynamic offers and purchases made with virtual in-app currency. For virtual queues for cultural and sports tickets, companies would have to display the current price in real time and at the highest possible price.

The DFA would make digital contracts and subscriptions easier to cancel, with reminders before automatic renewals and the end of free trials. Consumers would also have the right to reach a human customer service representative, alongside clear rights when using an AI agent to make purchases.

Gaming organisations have criticised the proposal’s restrictions on virtual currencies, loot boxes and micro-transactions for minors as “unworkable, unjustified and disproportionate.” The draft must still pass through the European Parliament and the Council of the European Union, and measures may change or be removed. The Commission says companies that breach the rules could face fines of up to six percent of worldwide annual turnover. It estimates the proposal could save EU consumers up to €13.7 billion ($15.1 billion) a year.