European Commission Proposes Digital Consumer Protection Overhaul With Fines of Up to 6% of Global Revenue

Key Takeaways

• Digital Fairness Act: The European Commission proposed new restrictions on manipulative online marketing, unfair pricing practices, addictive design features and subscription traps.
• Enforcement Powers: Proposed revisions to the Consumer Protection Cooperation Regulation would allow the Commission to investigate major cross-border consumer protection violations and impose fines of up to 6% of worldwide annual turnover.
• Business Compliance: Companies would face additional requirements covering pricing transparency, influencer marketing, subscription cancellations and protections for minors.
• Cross-Border Oversight: The proposals would strengthen coordination among national authorities and require non-EU companies to appoint legal representatives within the bloc.
• Legislative Process: Both proposals must be considered by the European Parliament and Council before becoming law. The Commission estimates potential consumer savings of up to €13.7 billion annually.

Deep Dive

The European Commission proposed new restrictions on online marketing, pricing and subscription practices on November 10, alongside an overhaul of consumer protection enforcement that would allow it to fine companies up to 6% of their worldwide annual turnover for major violations affecting consumers across the European Union.

The proposals, which include a new Digital Fairness Act and revisions to the Consumer Protection Cooperation Regulation, would expand the EU's consumer protection framework and give Brussels direct enforcement powers that currently rest with national authorities.

The Commission estimates that the changes could save consumers as much as €13.7 billion annually. For businesses, the proposed legislation would introduce additional compliance obligations covering digital advertising, purchasing practices, subscription management and the treatment of minors online.

The enforcement provisions would represent a particularly significant change. Although the Commission currently coordinates investigations involving widespread consumer protection violations, it cannot directly enforce the rules. The proposed revision would allow it to investigate certain large-scale cases and impose penalties itself.

New Restrictions on Online Marketing and Pricing

The Digital Fairness Act would prohibit certain manipulative marketing practices, commonly known as dark patterns, that pressure consumers into making purchasing decisions they might otherwise avoid. Among the practices identified by the Commission are false claims that a product is nearly sold out. Such warnings can create artificial urgency, encouraging customers to complete purchases without sufficient time to consider their decisions.

The proposed legislation would also introduce additional transparency requirements for digital pricing, particularly for purchases made using virtual in-app currencies and dynamic pricing for cultural and sporting events.

Companies operating virtual queues would be required to display the current price in real time and the highest possible price, giving consumers greater visibility into potential costs before completing a purchase.

The Commission also wants to restrict digital features designed to encourage excessive spending. Consumers would have the option to disable certain addictive design features, including persistent purchasing prompts.

For minors, the proposal would prohibit gambling-like features such as pay-to-win and pay-to-progress mechanisms. It would also restrict unfair personalized advertising and pricing practices that target children or exploit sensitive personal data.

Influencer marketing would face additional disclosure requirements, with commercial content required to be clearly identified. The legislation would also seek to prevent marketing practices that exploit the trust of younger audiences.

Subscription services are another focus. The proposed rules would make digital contracts easier to cancel and address unwanted automatic renewals and free trials that turn into paid subscriptions without consumers fully understanding the terms.

Consumers would also gain the right to communicate with a human customer service representative and receive clearer protections when using artificial intelligence agents to purchase products on their behalf.

Alongside these restrictions, the Commission proposed measures intended to simplify compliance for businesses. A separate simplification directive would introduce targeted amendments to the Consumer Rights Directive, including streamlined pre-contractual information requirements for repeat in-app purchases and clearer rules for canceling digital media subscriptions during the withdrawal period.

Commission Seeks Direct Enforcement Authority

The proposed revision of the Consumer Protection Cooperation Regulation would change how major consumer protection violations are investigated and penalized across the EU. Under the existing framework, national consumer protection authorities are responsible for investigating and addressing violations. The Commission facilitates coordinated enforcement actions involving widespread infringements with an EU dimension but does not have the authority to enforce consumer protection rules directly.

The proposed revision would give the Commission investigative and enforcement powers in large-scale cases with a significant impact on consumers across the Single Market.

Companies found to have committed violations in cases falling under those powers could face fines of up to 6% of their worldwide annual turnover. The use of global revenue as the basis for calculating penalties would expose multinational businesses to potentially substantial financial consequences.

The proposal would also establish timelines for important stages of cross-border investigations and improve coordination among national authorities, including situations in which penalties must be collected across multiple jurisdictions.

Companies headquartered outside the EU would be required to appoint a legal representative within the bloc to cooperate with national consumer protection authorities and the Commission.

The changes follow a 2024 Commission report that identified shortcomings in the existing enforcement system.

Since the Consumer Protection Cooperation Regulation began applying in 2020, the network of national consumer protection authorities established under it has conducted more than 30 coordinated enforcement actions.

The Commission argues that stronger centralized enforcement is necessary to address unfair digital practices that can affect consumers across several countries simultaneously.

A Broader Reform of EU Consumer Protection

The proposals build on the Commission's 2024 Digital Fairness Fitness Check, which examined the effectiveness of existing EU consumer protection legislation in digital markets. Both initiatives were subsequently included in the Commission's 2030 Consumer Agenda. The Digital Fairness Act also appeared in its 2026 Work Programme, while the proposed enforcement reforms form part of the One Europe, One Market roadmap.

Henna Virkkunen, the Commission's executive vice president for tech sovereignty, security and democracy, said the reforms were intended to reflect changes in how consumers interact with businesses.

"The Single Market lives through its 450 million consumers. Our laws must keep up with the way people live, shop and do business today," Virkkunen said.

Michael McGrath, the commissioner responsible for democracy, justice, the rule of law and consumer protection, described the proposals as the most ambitious reform of EU consumer protection rules in a generation.

"Shopping has never been more convenient, but convenience must never come at the expense of fairness," McGrath said.

The proposals now move to the European Parliament and Council for consideration. Neither the new restrictions nor the proposed enforcement powers have taken effect. The legislation could eventually require changes to marketing disclosures, digital pricing practices, subscription arrangements and consumer-facing technology.

The proposed enforcement overhaul would also introduce a new source of regulatory exposure, allowing the Commission to pursue major cross-border consumer protection cases directly rather than relying exclusively on national authorities.

The final scope of those obligations and powers will depend on the legislation adopted by EU lawmakers.

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