FEDMA Response to the Digital Fairness Act consultation

Overall, FEDMA agrees that the exploitation of consumers’ vulnerabilities to personalize commercial offers is an unacceptable practice. However, it is our belief that existing laws already enable to address this situation. Adding a new layer of rules on this topic would complexify further the legal framework, undermine the functioning of the single market and make it more difficult for European start-ups and SMEs to flourish.

1. Unfair consumer practices & consumer choice | Key message: As the Commission is exploring whether consumers could express their preferences regarding personalised advertising through a simple and effective (i.e. centralised) opt-in or opt-out system, FEDMA recalls ongoing challenges with the ePrivacy Directive, GDPR consent requirements, and competition implications.
2. Unfair consumer practices & vulnerable consumers | Key message: Rather than adding new rules, FEDMA recommends leveraging existing legislations, in particular the UCPD’s provision on ‘undue influence’, the DSA’s ban on personalised ads based on sensitive data, and the GDPR’s risk-based approach.
3. Dark patterns | Key message: Rather than adding new rules, FEDMA recommends issuing additional guidelines, including the missing DSA guidelines on dark patterns.
4. Digital contracts & subscriptions| Key message: Rather than adding new rules, FEDMA recommends assessing the future transposition and implementation of the Directive on the marketing of financial services at a distance (DMFSD) and its cross-sectoral requirement for a withdrawal function for all online contracts.
5. Simplification measures | Key message: Any possible legislative change should contribute to enhanced consumer protection and simplification of the regulatory environment for Small and Medium Enterprises (SMEs).