Clicks And Consumer Rights: What EU’s Proposed Digital Fairness Act Means For India

From banning deceptive online practices to introducing penalties of up to 6% of global annual turnover, the EU’s proposed Digital Fairness Act could reshape digital business practices and create important compliance considerations for Indian companies serving European consumers.

Ever rushed to buy something online because a flashing banner warned you it was the very last one in stock? Or maybe you tried out a free trial, only to realize that canceling it felt like running through a maze. We have all been there.

To put an end to these frustrating digital hurdles, the European Commission recently proposed a major update called the Digital Fairness Act. The goal is simple: make sure that online shoppers enjoy the exact same high level of safety and transparency as they do in physical stores.

By targeting manipulative marketing, hidden fees, and tricky website designs, this new rulebook will bring massive changes for companies world-wide, including online businesses operating from India.

Stopping Sneaky Online Sales Tricks

The heart of this update is a strict ban on deceptive design tricks—often called dark patterns. You know the ones: fake countdown timers or hidden costs that pressure you into buying something you do not really need. Under the proposed act, digital contracts and subscriptions will be much easier to cancel.

This means saying goodbye to those sneaky automatic renewals that turn innocent free trials into expensive traps. It also takes aim at addictive tech designs.

Soon, you will have the power to simply turn off features that push you to keep scrolling or spending endlessly, levelling the playing field for everyone online.

Keeping Prices Clear And Honest

The proposal also pushes for total honesty when it comes to pricing, especially for things like event tickets where costs tend to jump around. If you are stuck in a virtual queue, companies will have to show you the current price right then and there, along with the highest possible amount you might pay. Influencers will need to be much more upfront when they are getting paid to sell you something, which helps protect younger audiences who trust them.

Speaking of younger users, the new rules will strictly limit personalised ads and prices aimed at minors to keep them safe. And perhaps best of all, if you run into a problem, you will have the right to talk to an actual person instead of arguing with a chatbot, alongside new protections for when you use artificial intelligence agents to buy things.

Strict Rules For Global Brands

The cost of these shady digital practices is massive. Right now, European consumers lose about €10.3 billion every single year to them. By putting these new rules in place, the European Commission hopes to save shoppers up to €13.7 billion annually. To make sure companies actually listen, the Commission will have the power to investigate big cross-border cases and hand out serious fines.

Rule-breakers could be forced to pay up to 6 percent of their global annual turnover. And this does not just apply to European companies. Businesses outside the EU, including Indian tech and e-commerce brands selling to European customers, will have to set up a legal representative inside the European Union. This representative will make sure they are cooperating smoothly with local authorities.

How India Matches European Rules

For online businesses based in India, these European changes will actually feel pretty familiar. Back home, India's Central Consumer Protection Authority has already paved the way by rolling out comprehensive guidelines in 2023 to tackle 13 different kinds of dark patterns.

Because both regions are clearly committed to protecting people from being exploited online, Indian tech companies are already in a great position to adapt to Europe's new demands. The timing of all this is spot on, too, as both sides are working hard to iron out the comprehensive free trade agreement.

Building A Shared Digital Future

India's Finance Minister Nirmala Sitharaman recently highlighted the strong momentum behind this strategic partnership, noting that it aims to push trade between the two regions to unprecedented heights.

Along the same lines, India's Commerce and Industry Minister Piyush Goyal has been busy holding talks with European counterparts to speed up the trade pact, which puts a big focus on digital trade and e-commerce across borders. As the digital world keeps growing, having similar consumer protection rules in both places creates a stable, predictable environment where honest businesses can truly thrive.

These upcoming changes and what they mean for the market will be a major talking point at the European Consumer Summit 2026: Stronger consumers in changing markets. The event will take place on 19 November 2026 at Dublin Castle, Ireland.

Here are the 13 dark patterns officially banned under India’s 2023 guidelines broken down simply - Guidelines for Prevention and Regulation of Dark Patterns, 2023.

They were issued by the Central Consumer Protection Authority (CCPA) under the Ministry of Consumer Affairs on November 30, 2023.

Dark Pattern	What It Does
False Urgency	Creates fake pressure to buy fast, like untrue countdown timers or "only 2 left!" alerts when stock is actually full.
Basket Sneaking	Secretly adds extra items, insurance, or donations to your cart without your permission right before you pay.
Confirm Shaming	Uses guilt or ridicule to push a choice, like a button that says, "No thanks, I don't care about saving money."
Forced Action	Makes you do something completely unrelated—like sharing your contacts or signing up for a newsletter—just to finish your purchase.
Subscription Trap	Makes a service extremely easy to join, but deliberately hides or complicates the cancellation process.
Interface Interference	Highlights the choice the company wants you to make (like a bright "Yes") while burying the alternative (like a faint "skip" link).
Bait and Switch	Advertises one product or offer to lure you in, but changes it to a different, costlier option at checkout.
Drip Pricing	Shows a low headline price at first, only to hit you with hidden, mandatory fees at the final payment step.
Disguised Advertisement	Hides paid promotions to make them look like regular news articles, user reviews, or organic search results.
Nagging	Overwhelms you with repeated, interruptive pop-ups and prompts until you finally give in and click.
Trick Question	Uses confusing wording, like double negatives in opt-out boxes, to trick you into agreeing to things you didn't mean to.
SaaS Billing	Silently turns a free trial into a paid plan or auto-renews a subscription without giving you clear prior notice.
Rogue Malware	Flashes fake virus alerts or system warnings to scare you into downloading or paying for unnecessary software.