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first_img The European Union draft aims to regulate addictive design and AI chatbots, with violations potentially resulting in a 6% revenue fine

According to Caixin, on November 10, multiple media outlets saw the draft of the Digital Fairness Act, which shows that the European Commission plans to require companies to allow users to disable features that induce compulsive or excessive use, and to regulate AI systems that extend interactions through simulated interpersonal relationships. The draft is expected to be published on November 11, and companies that violate the rules may face fines of up to 6% of their global annual revenue. The draft requires that adult users be given the option to disable autoplay, notifications unrelated to their activities, and continuous reward systems; if an AI chatbot encourages ongoing interaction by simulating interpersonal relationships, users should also have the right to disable related features.The draft also proposes to list 10 types of manipulative designs that are considered unfair under any circumstances, including making it significantly harder to register for services, hiding prices or automatic renewal terms, falsely implying there are no other choices, making false or inadequately qualified claims about supply or popularity, repeatedly emphasizing scarcity at checkout, pre-selecting additional products or quantities, framing refusal as a wrong choice, repeatedly asking to change a decision already made, using confusing double negatives, and fabricating notifications that someone has contacted the user. The European Commission can add new manipulative practices to the list without restarting the legislative process.The draft also proposes to require online subscriptions to provide a clear contract termination button, that consumers must actively consent before a free trial converts to a paid service, and that reminders must be sent before automatic renewals; for minors, it proposes to ban paid loot boxes and paid win mechanisms in video games. Impact assessments estimate that the relevant regulations will help consumers avoid economic losses of 88.4 billion euros between 2025 and 2035; when accounting for time lost, the annual benefit is expected to be 13.7 billion euros, with total annual compliance costs for companies estimated at 678 million euros. The draft still needs to be reviewed by the European Parliament and member states, and according to the current text, it will apply 12 months after coming into effect. The German government expressed opposition in mid-last month, advocating for amendments to the existing consumer protection directive rather than creating a new law.

first_img Australia Savings Bank: Starting from October 1, the additional fee for designated card network transactions will be canceled

The Reserve Bank of Australia (RBA) stated in the frequently asked questions document regarding retail payment regulation conclusions that the removal of surcharges for the designated card networks eftpos, Mastercard, and Visa starting from October 1, 2026, is in the public interest. The RBA will lift the ban on the "no surcharge" rule for the aforementioned networks from that date, with the changes based on Standard No. 3 of 2016 and the revisions to the merchant card payment costs and surcharge standards in 2026. eftpos, Mastercard, and Visa have all decided to implement the no surcharge rule from that date, generally applicable to their credit, debit, and prepaid cards, including cards issued overseas.American Express, UnionPay, and PayPal have also decided to eliminate surcharges, but are currently not formally regulated by the RBA. American Express and UnionPay will withdraw from their existing commitments with the RBA on October 1, 2026, while PayPal's no surcharge rule will take effect on October 5, 2026. This scope is limited to fees charged due to customer card payments and does not include surcharges for weekends, public holidays, booking fees, or service fees. Merchants must comply with the new card organization rules unless exceptions apply; businesses, non-profit organizations, and inter-business card payments do not receive a general exemption.The reforms will be implemented in phases. Starting from October 1, 2026, a lower interchange fee cap will apply to domestic card transactions; from October 30, designated card networks and large acquirers must publish the specified card payment fee information on their websites. From January 30, 2027, large acquirers must disclose how the decrease in interchange fees is passed on to merchant service fees; starting April 1, the interchange fee cap will apply to transactions involving overseas-issued cards acquired in Australia, and acquirers must also provide merchants with more detailed statements. The RBA stated that businesses can still factor the costs of accepting card payments into their overall pricing and may offer discounts for specific payment methods.
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