Japan moves to regulate deceptive ‘dark patterns’ in digital interfaces

Japan's Consumer Affairs Agency has released an interim report aiming to strengthen regulations against ‘dark patterns’—deceptive website and app designs that manipulate users into unintended contracts or cancellations. The agency intends to submit a bill to the next ordinary Diet session, potentially amending the Act on Specified Commercial Transactions.

While the proposed amendments primarily target general e-commerce, there are concerns regarding the cryptocurrency industry. Experts have noted that some crypto exchanges may use design layouts to steer users toward high-spread ‘sales offices’ rather than more cost-effective ‘exchanges.’ Although current crypto regulations fall under different laws, future coordination between the Consumer Affairs Agency and the Financial Services Agency may be necessary to ensure investor protection.

A study by the Dark Pattern Countermeasures Association highlights the scale of the issue, estimating that annual damages from dark patterns have doubled in two years, reaching up to 3.2 trillion yen. The report indicates that approximately 26.57 million general consumers have experienced financial harm, with elderly populations being particularly vulnerable to difficulties in canceling unintended subscriptions.