The DSA mandates that online marketplaces ensure the traceability of traders on their platforms.
Acviss
The European Union's Digital Services Act (DSA), introduced as part of the Digital Services Package, aims to create a safer digital space by holding online platforms accountable for illegal and harmful content. This comprehensive framework is set to significantly improve the security of online shopping experiences and transparency across supply chains.
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Key Components of the Digital Services Act?
1. Enhanced Accountability for Online Platforms: The DSA imposes stricter obligations on online intermediaries and platforms, requiring them to implement mechanisms to detect and remove illegal content promptly. This includes counterfeit products, which are a significant concern for consumers and brands. Platforms must provide clear processes for users to report illegal activities, ensuring swift action and reducing the presence of fraudulent goods.
2. Emphasis on Transparency and Reporting: Platforms must disclose information about their algorithms and decision-making processes, particularly those used for content moderation. They are also required to publish annual transparency reports detailing their efforts in combating illegal content. This is crucial for building trust with consumers, who can see the steps taken to protect their shopping experiences.
3. Special Duties for VLOPs: VLOP or Very Large Online Platforms, defined as platforms with more than 45 million monthly active users in the EU, face additional responsibilities. These include conducting risk assessments, implementing risk mitigation measures and undergoing independent audits. The platforms should also provide an easily-accessible complaint register system for customers. The aim is to address systemic risks associated with their scale, such as the spread of illegal goods and misinformation.
4. Ensuring Trader Traceability: The DSA mandates that online marketplaces ensure the traceability of traders on their platforms. This means that marketplaces must collect and verify essential information about sellers, making it easier to track down and act against those who engage in illegal activities. This traceability enhances consumer protection by ensuring that they are purchasing from legitimate sellers.
Enhancing the Online Shopping Experience with the DSA
The focus on accountability and transparency directly impacts the security of online shopping. With the cutting down of counterfeits, illegal listings and other frauds, DSA ensures that shoppers can trust the legitimacy of sellers, reducing the risk of fraud. Brands can directly register complaints in case of infringements and platforms are obliged to rectify it and report back. Crucially, the transparency reports and audit requirements for VLOPs provide consumers with insights into how these platforms manage illegal content and protect user data, encouraging more secure and informed online shopping.
Promoting Transparency in Supply Chains
The DSA’s transparency requirements extend to the supply chain, a critical aspect for brands protecting their intellectual property and preventing counterfeit products. Platforms’ obligations to report on content moderation and risk assessments offer valuable data for brands, helping them identify patterns in counterfeit activities and take proactive measures to safeguard their supply chains.
Protecting Brands in the Digital Age
DSA aims to empower customers which benefits the brands to improve their online brand protection strategy. With the implementation, brands gain greater control over their intellectual property online. Platforms will be held accountable for tackling counterfeit goods and illegal listings, minimizing brand damage and lost revenue. The increased transparency in content moderation practices allows brands to ensure their IP is protected and hold platforms responsible for any shortcomings.
However, brands complying with the DSA's stricter regulations may come at a cost. Brands may need to invest in legal and compliance expertise to ensure their operations and those of their partners adhere to the new standards. This includes building robust infrastructure and potentially hiring legal specialists to navigate the complexities of the DSA.
Adapting to a New Era of Online Brand Protection
With the growing popularity for digital shopping, every brand has opened their online shopping front to greet their customers. EU’s digital service act will help to ensure that brands, despite its scale will have a firm support in the fight against online counterfeit threats. The act coupled with online brand protection tools like Acviss will provide a comprehensive online safety net the brands can leverage to expand their market. With the competition rising and landscapes shifting, brands have to be proactive to adapt.
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