Implications of the proposed EU Digital Fairness Act for Irish businesses

The European Union is developing a new Digital Fairness Act (DFA) with the aim of strengthening consumer protection across online marketplaces and digital services.

As part of the EU’s 2030 Consumer Agenda, the DFA is intended to address unfair online practices such as manipulative website designs, hidden fees, subscription traps and opaque personalisation.

The initiative is being spearheaded by Ireland’s EU Commissioner, Michael McGrath. Crucially, the Commission has stressed that the DFA is not intended to add unnecessary regulatory burdens, but rather to close gaps in existing legislation and provide clearer, more consistent rules across EU member states.

Whether the introduction of further EU regulation for digital platforms achieves this, or results in regulatory overlap, remains to be seen. However, Irish businesses operating online – particularly in e‑commerce, digital services, gaming and technology – will need to be aware of the DFA once it is published in late 2026 and, once the new EU regulation is adopted, begin preparation in advance of the regime coming into force in 2028 or later.

The DFA in context

The DFA sits within the EU’s Consumer Agenda 2025–2030, which identifies “digital fairness and online consumer protection” as a key priority. Its development follows the Commission’s 2024 digital fairness ‘fitness check’ report (218 pages / 2.4 MB PDF), in which it reviewed whether consumer laws such as the Unfair Commercial Practices Directive, Unfair Contract Terms Directive and Consumer Rights Directive remain fit for purpose in modern digital markets.

While the fitness check confirmed that existing rules are broadly effective, it also highlighted significant blind spots. These include so‑called ‘dark patterns’, addictive or manipulative interface designs, difficulties cancelling digital subscriptions, a lack of transparency around influencer marketing, and concerns about personalised pricing and profiling. The Commission concluded that this has created substantial consumer harm and fragmented enforcement across member states.

Rather than creating a standalone regime, the DFA is expected to update and supplement existing consumer protection laws, aligning them with newer digital frameworks such as the Digital Services Act (DSA), the competition rules established under the Digital Markets Act (DMA) and the Artificial Intelligence Act. In doing so, it aims to deliver a more coherent approach to digital fairness across all online sectors, not just large platforms.

Principal areas of reform

Although the formal proposed text is not expected to be published by the Commission until the end of 2026, several core themes are emerging from the European Commission’s working paper.

The DFA is currently expected to introduce a clear crackdown on dark patterns, by formally defining and blacklisting deceptive design practices that impair consumers’ ability to make free and informed choices. The concept of “fairness by design” is likely to feature prominently, with obligations placed on businesses to consider consumer protection at the design stage of websites, apps and games.

The EU fitness check highlighted concerns over features that may induce digital addiction, particularly where a trader’s economic interest conflicts with user welfare, and especially where children or vulnerable consumers are concerned.

Other anticipated measures include stronger transparency requirements around personalised advertising and pricing; clearer and harmonised rules on influencer marketing disclosures; a ban on ‘subscription traps’ by mandating easy cancellation processes; and an explicit prohibition on hidden fees and drip pricing – where consumers are shown an initial headline price for a good, service or digital product and additional mandatory charges are introduced, or ‘dripped’, later in the checkout process.

Over-regulation concerns

However, the DFA proposal has attracted criticism that it risks over‑regulating an already complex EU digital and consumer law landscape. Business groups and some commentators argue that practices targeted by the DFA such as dark patterns, misleading pricing and unfair personalisation are already regulated under the Unfair Commercial Practices Directive, the Consumer Rights Directive, the General Data Protection Regulation (GDPR) and the DSA.

From this perspective, the issue is not a lack of rules but inconsistent enforcement of existing obligations, with the concern being that the DFA may add further complexity rather than clarity for the industry.

Further concerns have also been raised regarding the breadth and vagueness of specific concepts underpinning the DFA, including “digital fairness”, “addictive design” and certain forms of personalisation. These open‑ended concepts could generate legal uncertainty and grant regulators wide discretion, making compliance difficult for businesses operating across multiple member states.

What this means for Irish businesses

For Irish businesses, as well as businesses operating in other EU member states, the DFA is expected to raise the compliance bar once finalised and adopted by EU lawmakers. Whilst the DFA is still being developed, certain practices the DFA seeks to target could already amount to infringement of existing consumer protection laws. Companies operating online marketplaces or that have online advertising and subscription models should begin auditing their digital interfaces, marketing practices and subscription models now with a view to eliminating practices that could be perceived as manipulative or opaque. Influencer contracts, pricing displays and cancellation mechanisms are all likely to come under increased scrutiny.

While the draft legislation is not expected until late 2026 and the rules – once finalised – are not expected to apply until 2028 at the earliest, businesses should be aware of the increased regulation and likely increased enforcement. Regulators have made it clear that businesses should not wait. Those that invest early in transparent, consumer‑friendly digital practices will not only be well‑placed for compliance but may also gain a competitive advantage in a market where trust and fairness are becoming central to consumer choice.

Possible insights from the UK

Although no longer part of the EU, the UK has recently expanded its consumer protection laws from their EU law roots to more effectively address concerns around online choice architecture, drip pricing and pricing transparency, fake online reviews and other misleading practices, as well as subscription contracts. The UK’s primary consumer law enforcer, the Competition and Markets Authority (CMA), has published detailed compliance guidance in many of these and related areas, including about social media endorsements and hidden advertising, and the UK experience may provide valuable insights for EU lawmaking institutions when shaping the future DFA regime.

The CMA is also the UK’s primary competition authority and has sole responsibility for enforcing the country’s new digital markets competition rules that largely mirror the EU’s DMA regime, providing further scope for both jurisdictions to share learnings and experience in digital regulation.

Whilst the UK will not be subject to the planned DFA regime, businesses based in the UK or in other non-EU jurisdictions will nonetheless need to comply with applicable EU and national laws in respect of their trading activities within the EU or aimed at EU consumers.