On October 3, 2024, the European Commission published a report evaluating the effectiveness of existing EU consumer protection laws in protecting consumers in the digital space.  More specifically, the report assesses the effectiveness of the following three consumer protection laws: (i) the Unfair Commercial Practices Directive (“UCPD”); (ii) the Consumer Rights Directive (“CRD”); and (iii) the Unfair Contract Terms Directive (“UCTD”).  It also identifies and analyses the main provisions in the DSA, DMA, Data Act, and AI Act that are of particular relevance for protecting consumers in the digital environment.  The report is the result of the 2022 public consultation we mentioned in our previous blog post.

The report found that the existing EU consumer laws are  not sufficiently effective in tackling current and emerging consumer harms in the digital environment.  The report will support the European Commission’s intention to start working a new EU consumer law called the “Digital Fairness Act”.  The new Act is expected to:

  • tackle new consumer risks in the digital space, such as dark patterns, addictive design and gaming, influencer marketing, personalization (of ads, rankings, recommendations and pricing/offers), contract cancellation, automated contracts in the context of connected devices, digital subscriptions, and generative AI systems (e.g., AI chatbots) and emotion-recognition AI systems;
  • provide for a greater degree of harmonization, further reducing differences in consumer laws at Member State level; and
  • ensure better enforcement, for example through the use of automated enforcement tools (e.g., automated market sweep tools), by strengthening the powers of consumer authorities to undertake joint enforcement actions, and by ensuring an increase in national and CJEU case law on consumer law in the digital environment.

This new regulation is expected to be proposed by the Commission in the coming years.

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Covington & Burling regularly advises companies on all aspects of EU consumer law, as well as intersections with privacy, cybersecurity, and product safety laws.  We are happy to assist you with any inquiries related to compliance with EU consumer law.

Photo of Kristof Van Quathem Kristof Van Quathem

Kristof Van Quathem advises clients on information technology matters and policy, with a focus on data protection, cybercrime and various EU data-related initiatives, such as the Data Act, the AI Act and EHDS.

Kristof has been specializing in this area for over twenty…

Kristof Van Quathem advises clients on information technology matters and policy, with a focus on data protection, cybercrime and various EU data-related initiatives, such as the Data Act, the AI Act and EHDS.

Kristof has been specializing in this area for over twenty years and developed particular experience in the life science and information technology sectors. He counsels clients on government affairs strategies concerning EU lawmaking and their compliance with applicable regulatory frameworks, and has represented clients in non-contentious and contentious matters before data protection authorities, national courts and the Court of the Justice of the EU.

Kristof is admitted to practice in Belgium.

Photo of Anna Oberschelp de Meneses Anna Oberschelp de Meneses

Anna Sophia Oberschelp de Meneses is an associate in the Data Privacy and Cybersecurity Practice Group.

Anna is a qualified Portuguese lawyer, but is both a native Portuguese and German speaker.

Anna advises companies on European data protection law and helps clients coordinate…

Anna Sophia Oberschelp de Meneses is an associate in the Data Privacy and Cybersecurity Practice Group.

Anna is a qualified Portuguese lawyer, but is both a native Portuguese and German speaker.

Anna advises companies on European data protection law and helps clients coordinate international data protection law projects.

She has obtained a certificate for “corporate data protection officer” by the German Association for Data Protection and Data Security (“Gesellschaft für Datenschutz und Datensicherheit e.V.”). She is also Certified Information Privacy Professional Europe (CIPPE/EU) by the International Association of Privacy Professionals (IAPP).

Anna also advises companies in the field of EU consumer law and has been closely tracking the developments in this area.

Her extensive language skills allow her to monitor developments and help clients tackle EU Data Privacy, Cybersecurity and Consumer Law issues in various EU and ROW jurisdictions.