TikTok Faces EU's Wrath for Ad Transparency Violations
TikTok Violates Advertising Regulations According to EU Commission
In a blunt warning, the EU Commission has called out TikTok for skirting advertising rules, potentially facing hefty fines. The popular video-sharing app, owned by Bytedance, is under scrutiny due to its murky ad practices that fail to meet the EU's Digital Services Act (DSA) standards.
According to the DSA, platforms like TikTok are required to publish an ad archive, which facilitates the identification of fraudulent advertising, hybrid threats, information operations, or disinformation. However, TikTok falls short in this regard, as it neither publicizes an ad registry nor does its ad archive allow for a thorough search.
The EU Commission's assessment indicates that TikTok is not transparent enough about its ads, failing to provide necessary information about ad content, which could lead to a substantial fine. The Commission analyzed internal company documents, TikTok tools, and consulted experts to arrive at their findings.
Several other platforms, including X (formerly Twitter), Facebook, and Instagram's parent company Meta, are also under investigation for suspected DSA breaches. These investigations aim to ensure that hate speech is promptly addressed, in line with the DSA's objectives.
Interestingly, the DSA mandates that ads should be clearly labeled, targeted parameters disclosed, and an advertising repository provided. This repository should be easily searchable, detailing ad content, the identity of the payer, target groups, display period, reach, and more. Moreover, platforms should issue annual reports on content removal and user suspension, and ensure users can report illegal content.
Unfortunately, TikTok has not yet complied with these requirements, hindering regulatory and civil society efforts to analyze ad content, detect targeted campaigns, and root out manipulative or harmful practices such as disinformation or political influence.
If a company flouts the DSA, they risk fines amounting to 6% of their global annual turnover. In extreme cases, access to the service may be restricted or suspended within the EU.
In essence, TikTok must adhere to the DSA's transparency norms by making their ads clear, disclosing ad parameters, and creating an accessible, machine-readable advertising repository. The current transparency lapses form the basis for the EU's enforcement action against the platform.
- TikTok
- EU Commission
- Social Media
- China
- EU
- X (formerly Twitter)
- Elon Musk
- Brussels
- Digital Services Act (DSA)
[1] ebspot.eu/article/digital-services-act-dsa-european-commission-proposes-legislation-to-improve-the-functioning-of-the-online-single-market[2] de.reuters.com/article/eu-uk-digital-services-act-factbox-idUSL8N2P92IG[3] digital-strategy.ec.europa.eu/en/policies/european-democracy[4] ciaoweb.eu/article/european-commission-plans-sanctions-for-content-platforms-that-violate-ads-rules/6552126980/
Enrichment Data (Optional, 15% or less):The EU's Digital Services Act (DSA) establishes stringent requirements for advertising transparency that apply to all platforms operating within the EU, including TikTok as a very large online platform (VLOP). The DSA requires platforms to provide a transparent and freely accessible advertising repository containing detailed information about each ad, including the specific content, identity of the payer, intended target groups, display period, and reach, among other factors. This repository must be easily searchable and accessible in a machine-readable format. Primary non-compliance issues include a lack of clearly labeled ads, inadequate disclosure of targeted information, and inadequate advertising repository.
- The EU Commission is proposing to extend the deadline for TikTok, a popular social media platform owned by the Chinese company Bytedance, to comply with the advertising transparency norms as outlined in the Digital Services Act (DSA).
- In light of the EU's Digital Services Act (DSA), other platforms, including X (formerly Twitter), Facebook, and Instagram's parent company Meta, are also under investigation for suspected DSA breaches.
- The EU Commission's enforcement action against TikTok stems from its failure to adhere to the DSA's transparency norms, such as the lack of clearly labeled ads, inadequate disclosure of targeted information, and an inaccessible advertising repository.
- Non-compliance with the EU's Digital Services Act (DSA) could result in substantial fines for TikTok, amounting to 6% of their global annual turnover, or even restricted access to their service within the EU.
