The European Commission’s recent fitness check of EU consumer law could lead to a Digital Fairness Act, addressing issues like personalized pricing and advertising by focusing on “dark patterns.” However, critics argue that existing regulations, including GDPR and DSA, should be fully assessed before new laws are enacted, as they may hinder innovation.
On October 3, 2024, the European Commission published a fitness check of EU consumer law to evaluate existing regulations regarding digital fairness. This assessment may pave the way for a Digital Fairness Act, though it remains uncertain. Before introducing new regulations, Europe should take time to analyze the long-term ramifications of the GDPR, DSA, DMA, and AI Act on the industry.
In contrast to the U.S. approach, which fosters technological innovation, Europe has adopted a precautionary stance, focusing on regulation. This shift reflects concerns about technology’s potential societal impacts. Advocates of this values-based approach assert it is preferable to the U.S. model that prioritizes innovation; however, the European Competitiveness Report, released on September 9, 2024, indicates that such regulation has stifled progress and growth within Europe.
A proposed Digital Fairness Act could address issues related to personalized pricing, advertising, influencer marketing, and various online practices deemed problematic. The report highlights “dark patterns,” design elements intended to influence user behavior in ways that benefit online services but may not always align with user intent.
Concerns arise from the ambiguous definition of dark patterns, which could encompass numerous common marketing practices that are not inherently harmful to consumers. For example, brands often use design elements to appeal to specific demographics or encourage impulse purchases, which is standard in retail marketing.
Current regulations have already imposed significant restrictions on the tech industry. Prematurely introducing more regulations while the DSA, DMA, and AI Act are still new risks redundancy. To ensure effective policymaking, Europe should evaluate the impact of existing laws on consumer welfare before proceeding with additional regulations.
Original Source: itif.org
