BEUC NEWS - 4.10.2024

Yesterday, the European Commission published the results of its Digital Fairness Fitness Check on EU consumer law. The report evaluates whether EU consumer law sufficiently protects consumers in the digital environment. The results show that while EU law remains relevant, there is room for improvement in protecting consumers in the online world. BEUC identified these gaps and has long called for improvements to the laws, so we are pleased to see progress being made.

The growing gap in power and information between businesses and consumers leaves us consumers increasingly vulnerable to manipulation and exploitation. The report shows that harmful commercial practices online cost EU consumers at least €7.9 billion per year.

While recent EU laws have improved online protection, there is still room for improvement in horizontal EU consumer legislation. Namely the Unfair Commercial Practices Directive is highly relevant to protect consumers where specific legislation, such as the Digital Services Act, does not apply. But to keep up with harmful market trends, the Commission urgently needs to update EU consumer law and ensure it can remain a safety net to protect consumers both online and offline.

Background:
The European Commission launched the Digital Fairness Fitness Check on EU consumer law in 2022 to assess whether key EU consumer laws, such as the Unfair Commercial Practices Directive, still provide sufficient protection in the digital landscape.
A 2023 BEUC survey revealed significant consumer concerns, with less than half (43%) of consumers reporting feeling in control of their online choices. More than half (55%) reported losing trust in a company after feeling misled or manipulated by its website or app. BEUC has also conducted research which contributed to the evaluation carried out by the European Commission and recommended a new Digital Fairness Act to fill the gaps in the EU’s regulatory framework.

Next steps: 
On 17 September 2024, the President of the European Commission, Ursula von der Leyen, tasked the next Commissioner for consumer protection to “develop a Digital Fairness Act to tackle unethical techniques and commercial practices related to dark patterns, marketing by social media influencers, the addictive design of digital products and online profiling, especially when consumer vulnerabilities are exploited for commercial purposes”. This legislative proposal will most likely build on the findings of the Digital Fairness Fitness Check Report published today.