Europaudvalget 2022-23 (2. samling)
EUU Alm.del Bilag 443
Offentligt
Annex 1
Recommendations for the Unfair Commercial Practices Directive (UCPD)
Date: May 1. 2023
The Danish government would like to give its recommendations on how the UCPD can be altered
in order to protect consumers´ interests and provide them with a basis for making informed choices
and furthermore make it more manageable for enforcement authorities to enforce the rules in an
increasingly digitalised environment.
Addressing digital asymmetry
Digital asymmetry occurs when a consumer is at a disadvantage, because the trader controls and
shapes the digital environment in which the consumer operates, presumably often without the con-
sumer having concrete knowledge of the underlying mechanisms. When engaging with the digital
environment created by the trader the consumer gives access to detailed data, which allows the trader
to develop a personal profile on the consumer including registering decision-making biases and
preferences.
When traders use online choice architecture to control the arrangement of options and the decision-
making format affecting consumers’ behaviour and decisions problems can arise. The trader can
adopt personalised persuasion practices that serve as a form of manipulation of the consumer by i.e.
obscuring available choices, or burden the exercise of choice. Traders can also make adjustments to
their digital environment to improve the effectiveness of their practices through e.g. A/B testing.
The issues arising from this will most likely only be exacerbated with the increasing data collection
combined with machine learning and other AI techniques. Ultimately this can lead to consumers not
having enough transparency and control over the extent to which they wish to be the subjects of
personalised practices, and make it difficult for authorities to enforce the existing rules. We therefore
encourage the Commission to look into whether it would be necessary to supplement the existing
rules, such as GDPR and ePrivacy, as well as the coming AI Act, with targeted and easily enforce-
able rules in consumer law.
The Commission could also look into, whether the largest traders or their third-party suppliers
should be obliged to provide more transparency on internal tests (e.g. A/B tests) for authorities and
researchers.
The Danish government finds that digital asymmetry and personalized persuasion practices should
be addressed in the UCPD in a number of ways. The following sections will address this through
these topics:
o
UCPD needs to address future challenges presented by AI
o
Revise the concept of the average consumer
o
Test and prove that transparency requirements are efficient
o
Right to reset data generated personalized commercials
o
Revise the definition of a transactional decision
o
Clarify the concept of “undue influence” as an aggressive commercial practice and how it
applies to digital asymmetry and personalized persuasion practices
o
Apply a fairness by design obligation