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Anyone who shops online, uses a smartphone, or plays video games could soon be much better protected. With the planned Digital Fairness Act (DFA), the European Union is working on a new legislative package designed to fundamentally transform digital consumer protection. This is by no means limited to major tech companies like Amazon, Apple, or Meta. Small online retailers, app developers, game publishers, and digital platform operators will also have to adapt to the new rules.

At first glance, the EU’s goal sounds convincing: Consumers should be able to make informed decisions online—free from psychological tricks, misleading advertising, or opaque business models. But this is precisely where the debate begins. Many companies fear that well-intentioned regulations will ultimately place a significant burden on the entire digital economy.

An End to Tricks in Online Retail?

Almost everyone is familiar with them: the flashing message “Only 2 left,” the countdown to what’s supposedly the last special offer, or the subscription you can sign up for with a single click but can only cancel after a long search.

These are precisely the kinds of practices the EU wants to restrict more strictly. The focus is on so-called manipulative design techniques intended to unconsciously influence users to make certain decisions. In the future, websites and apps are to be designed to be more transparent. Prices, contract terms, and options should be clearly identifiable. Consumers should no longer be influenced by hidden settings or complicated menus.

Personalized offers could also be subject to stricter regulation. The EU intends to intervene if algorithms specifically exploit the behavior of individual users or influence particularly vulnerable groups.

Video games are coming under particular scrutiny

One area is of particular focus: the gaming industry.

Many modern games are now funded through in-game purchases, virtual currencies, seasonal passes, or other digital add-on content. At the same time, some games rely on reward systems, daily login bonuses, or artificial scarcity to keep players engaged for as long as possible.

The EU is therefore examining whether certain game mechanics have an excessive influence on children and adolescents in particular. Among other things, the discussion centers on stricter regulations for virtual currencies, transparent pricing, and a critical review of designs that are particularly addictive or manipulative purchasing incentives. Influencer marketing and hidden advertising are also among the topics covered by the Digital Fairness Act.

However, the gaming industry warns against casting blanket suspicion on viable business models. Many companies see the risk that, in addition to existing youth media protection measures, new regulations could be introduced that overlap and become unnecessarily complicated.

Even small retailers aren't spared

Anyone who thinks the law is aimed exclusively at international tech giants is likely mistaken.

Based on the discussions so far, the new regulations are intended to apply in principle to digital business models—regardless of whether a company has billions in revenue or simply operates a small online store. This could mean that even smaller retailers would be required to critically review their ordering processes, pricing, and user experience.

Smaller companies, in particular, often have neither their own legal departments nor large development teams. Every new regulation means additional work, technical adjustments, and, in some cases, higher costs. Critics therefore warn that the very people who are already struggling with rising costs could end up bearing the brunt of these changes.

Greater Transparency Regarding Influencers and Personalized Advertising

The Digital Fairness Act is not intended to apply only to traditional online stores.

Influencer marketing is also on the agenda. In the future, consumers should be able to more easily tell when content is actually advertising and when it is simply personal recommendations. At the same time, the EU is addressing personalized offers based on extensive user data.

In the future, there will be much stricter restrictions on digital services that specifically target people based on their personal vulnerabilities or behavior. The focus here is on particularly vulnerable groups, such as children and adolescents.

Between Consumer Protection and Overregulation

Hardly anyone would dispute that consumers should be protected from unfair practices. No one wants to be intentionally taken advantage of through hidden costs, misleading designs, or psychological sales tactics.

At the same time, however, a crucial question arises: Where does sensible consumer protection end—and where does excessive regulation begin?

The more regulations there are, the more difficult it becomes to implement them. Innovation could be stifled, smaller companies would face higher costs, and international competitors outside Europe could operate more easily in the market than European providers.

That is precisely why many associations are calling for the Digital Fairness Act to simplify existing regulations rather than constantly introducing new obligations. A clear, uniform set of rules would be far more helpful to both consumers and businesses than yet another complicated legislative package.

Protection is important, but a sense of proportion is crucial

The idea behind the Digital Fairness Act is perfectly understandable. No one needs manipulative sales tactics or apps designed to trick users into spending money. But the EU should finally stop trying to solve every problem with a new law.

The big tech companies have entire departments dedicated to implementing new regulations overnight. Small online shops, startups, and independent game studios cannot do that. There is a high risk that, in the end, the very companies that actually want to operate fairly will be the ones penalized.

More transparency? Anytime. Less manipulation? Right away. But if every online store turns into a mini-law degree, Europe will lose exactly what it urgently needs: innovation, courage, and entrepreneurial freedom.