The EU’s introduction of the Digital Services Act (DSA) as part of the Digital Services Package is set to revolutionize how online platforms handle illegal and harmful content. This legislation aims to create a safer digital space, enhancing the security of online shopping and transparency across supply chains. Let’s dive into what the DSA entails and how it can impact both consumers and brands.
What does the Digital Services Act Entail
1. Enhanced Accountability for Online Platforms
A major aspect of the DSA is the stricter obligations on online intermediaries and platforms. They are now required to implement robust mechanisms to detect and promptly remove illegal content, including counterfeit products—a significant concern for consumers and brands. Platforms must also establish clear processes for users to report illegal activities, ensuring swift action and reducing the presence of fraudulent goods.
2. Transparency and Reporting Requirements
Transparency is a vital focus of the DSA. Platforms are required to disclose their algorithms and decision-making processes, particularly those used for content moderation. They must publish annual transparency reports detailing their efforts to combat illegal content. This builds trust with consumers and allows them to see the concrete steps taken to protect their shopping experiences.
3. Obligations for Very Large Online Platforms (VLOPs)
VLOPs, or Very Large Online Platforms with over 45 million monthly active users in the EU have additional responsibilities. These platforms must conduct risk assessments, implement risk mitigation measures and undergo independent audits. They also need to provide an easily accessible complaint system for customers. These measures aim to address the systemic risks associated with their scale, such as the spread of illegal goods and misinformation.
4. Traceability of Traders
The DSA mandates that online marketplaces ensure the traceability of traders on their platforms. This means collecting and verifying essential information about sellers, making it easier to track down and take action against those engaged in illegal activities. This enhanced traceability is crucial for consumer protection, ensuring they purchase from legitimate sellers.
How Does the DSA Impact the Online Shopping Experience?
The DSA’s focus on accountability and transparency directly enhances the security of online shopping. Cutting down counterfeits and fraud helps restore shoppers’ trust in online sellers. Brands can directly register complaints in case of infringements and platforms are obliged to rectify these issues and report back. Transparency reports and audit requirements for VLOPs also provide consumers with insights into how these platforms manage illegal content and protect user data, encouraging more secure and informed online shopping.
Role of the DSA in Building Transparency in the Supply Chain
The DSA’s requirements for platform transparency extend to the supply chain. This visibility is vital for brands to protect their intellectual property and ensure their products are not counterfeited. Platforms’ obligations to report on their content moderation efforts and risk assessments provide valuable data for brands. This can be used to identify patterns in counterfeit activities and take proactive measures to safeguard their supply chains.
A Safety Net for Brands
The DSA empowers customers, which in turn benefits brands by improving their online brand protection strategies. Brands gain greater control over their intellectual property online as platforms become accountable for tackling counterfeit goods and illegal listings. This drastically minimises brand damage and lost revenue. Increased transparency in content moderation practices allows brands to secure their IP and hold platforms responsible for any shortcomings.
However, compliance with the DSA’s stricter regulations might come at a cost. Brands need to invest in legal and compliance expertise to ensure their operations and partners adhere to the new standards. This includes building robust infrastructure and hiring legal specialists to navigate the complexities.
A New Approach to Online Brand Protection
With the surge in digital shopping, every brand has opened an online front to reach a broader audience. The DSA offers a new approach to ensure brands, regardless of their size, have the necessary support to fight online threats. Coupled with online brand protection tools like Acviss, the DSA provides a comprehensive online safety package that brands can leverage to expand their market. As competition rises and landscapes shift, brands must be proactive and adaptable to thrive in this new environment.
