Addictive App Design and the Digital Services Act
Tuesday 26th November 2024
The Digital Services Act regulates very large online platforms and search engines – those with more than 45 million monthly users.
In September 2024, Temu reported 92 million monthly users, placing it squarely in the Act’s scope. On 31 October 2024, the European Commission launched an investigation into whether Temu’s app design breaches the Digital Services Act by being addictive.
What is an addictive app design and why does it matter?
The Commission has previously stated that addictive designs may stimulate behavioural addictions or create ‘rabbit hole effects’ where users continue consuming content. It is concerned that addictive app designs could negatively impact people’s mental and physical well-being.
The Commission has labelled Temu’s app as addictive because it includes game-like rewards programmes such as a roulette wheel that dispenses cash coupons for a win, bonuses accumulated through transactions, and free delivery if you order before a countdown timer expires. These rewards and the sense of urgency generated by the app encourage users to keep shopping, potentially spending beyond their means.
Under the Act, very large online platforms must assess and mitigate the risk that their services could negatively affect people (Article 43). As part of its investigation, the Commission will examine how Temu mitigates the risks associated with these addictive ‘reward’ features.
Many brands have introduced similar gamified features in their online rewards programmes. It’s common to see these strategies used to encourage customer spending.
If you need help understanding which app features should be risk assessed and how to do so, contact Gordons technology experts.
