A proposed EU law puts loot boxes, influencers and addictive features in the face of a crackdown

What the draft would address

The proposed law aims to curb online practices that can steer consumers toward spending or continued use. The Commission says the protections would apply to people shopping and browsing for goods or services online.

Measures include a ban on manipulative marketing and dark patterns, such as false suggestions that a product is nearly sold out. The draft also targets gambling-like game features, including pay-to-win and pay-to-progress, for minors.

It would limit personalised advertising and pricing that targets minors or exploits sensitive data. Companies would also need to make prices clearer, including for dynamic pricing and purchases made with virtual in-app currency.

Pricing and online queues

The rules could affect gaming, social media and e-commerce, as well as services using algorithms or repeated prompts to keep people engaged. The article identifies YouTube, TikTok, Meta platforms and Duolingo among examples in that discussion.

Debate and next steps

Some gaming organizations have criticized the draft’s approach to virtual currencies, loot boxes and microtransactions offered to minors. They called the proposed restrictions “unworkable, unjustified and disproportionate,” according to the article.

If the rules take effect, the Commission says companies that violate them could face fines of up to six percent of worldwide annual turnover. It also estimates the measures could save EU consumers up to €13.7 billion ($15.1 billion) a year.