Netherland’s Consumer Authority Publishes DSA Guidelines for Providers of Online Services
In February 2024, the European Digital Services Act (DSA) was enacted. To help businesses understand this new regulation, in September 2024, the Authority for Consumer and Markets (ACM) released Guidelines on the DSA for providers of online services. These guidelines outline the types of services covered by the DSA, the rules that providers must follow, and how to comply with these regulations.
Digital Services Act
The DSA seeks to create a secure, consistent, and reliable online environment. It introduces new regulations for providing intermediary services, classifying them into different types with specific obligations depending on their technical roles and the business size. These obligations are tiered. A provider more engaged with user information faces more requirements. The classified intermediary services include intermediary services, hosting services, and online platforms.
The Guidelines on the DSA for providers of online services
The key themes covered in the Guidelines include:
- Content moderation
The DSA contains a system of due diligence obligations for reporting illegal content, obtaining clarification on content moderation, and challenges to these decisions. The due diligence obligations must ensure that content moderation policies are more transparent and predictable for recipients.
The Guidelines state the following regarding content moderation:
Intermediary services must clearly state any restrictions on customer information in their terms and conditions, applying them fairly and proportionately. They must also outline their content moderation policies and notify customers of significant changes.
Hosting services must offer easy ways to report illegal content and handle these reports promptly and objectively, giving clear reasons for any restrictions imposed.
Online platforms (excluding small enterprises) must log restriction decisions in a European Commission database and provide an effective internal complaint system. They should inform users of out-of-court dispute options, handle complaints impartially and swiftly, and suspend users who frequently submit invalid complaints. Furthermore, they must prioritize the reports of trusted flaggers and publish annual content moderation activity reports.
- Accessibility and communication
The DSA requires that providers be reachable by recipients and authorities, and set up processes for timely responses to inquiries and requests.
The Guidelines state the following regarding accessibility and communication:
Intermediary services must have a single contact point for users and authorities to communicate quickly and easily by electronic means. They must inform authorities and users promptly about actions taken against illegal content or specific information related to it.
Hosting services must confirm receipt of notices about illegal content and inform the notifier of the action taken, including redress options. They must also alert law enforcement if they suspect a criminal offense.
Online platforms (excluding small enterprises) must update complainants on decisions and available redress options through their internal systems. They should also warn users who regularly post illegal content.
B2C online marketplaces (excluding micro and small enterprises) must make the affected consumers aware of certain information if traders have offered illegal products and services. If they do not have the contact details, they must publish this information on their website.
- Protection of minors
The DSA mandates intermediary service providers to exercise due diligence specifically to safeguard underage users.
The Guidelines state the following regarding the protection of minors:
Intermediary services must explain the service conditions and any restrictions in ways that minors can understand, especially if the service is aimed at or mainly used by minors.
Online platforms (except micro and small enterprises) must implement measures to ensure high privacy, safety, and security for minors if the platform is accessible to them and avoid presenting advertising based on profiling when it is reasonably certain that minors use their service.
- Influencing recipients
The DSA includes rules governing the way in which providers present information, including advertisements. The DSA also requires service providers to be transparent about the use of recommender systems, which are automated tools that suggest or prioritise information, including search results or other displayed content.
The Guidelines state the following regarding the influencing of recipients:
Online platforms (excluding micro and small enterprises) are required to design interfaces that do not deceive or manipulate users and support free, informed choices.
Online platforms must also ensure that advertisements are clearly identified, including who they are for and who paid for them, and publish the criteria that are used for targeting. They also must avoid using sensitive personal data for profiling advertisements.
Furthermore, online platforms must include clear details in terms and conditions about recommender system parameters and user options to modify them.
- Trustworthiness of B2C online marketplaces
According to the DSA, B2C online marketplace providers must follow rules to ensure a safe and transparent environment.
According to the Guidelines, B2C online marketplace providers (excluding micro and small enterprises) must ensure trader traceability; verify trader identities with a reasonable effort to assess trustworthiness; and design online interfaces, which help traders comply with EU transparency obligations.
Conclusion
Companies are urged to use the Guidelines to implement the DSA's requirements. The ACM and the Dutch Data Protection Authority (AP) have been designated as the DSA regulators in the Netherlands and will assume their role once the Netherland's implementing act comes into effect, anticipated for early 2025. Once fully empowered, the ACM is expected to enforce the DSA, and not merely advise businesses on it.
For more information on the DSA and the Dutch DSA Guidelines, contact your CMS client partner or these CMS experts.