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SDT members to expand their collaboration regarding digital regulation

The Digital Regulation Cooperation Platform (SDT) will create two additional so-called Chambers for the coordination of its oversight over digital platforms and artificial intelligence. Other regulators will also be involved in these Offices. The SDT was founded in October 2021 by the Netherlands Authority for Consumers and Markets (ACM), the Dutch Authority for the Financial Markets (AFM), the Dutch Data Protection Authority (AP), and the Dutch Media Authority (CvdM) to coordinate enforcement in the digital sector, and to combine knowledge and experiences in this area. The first two results of this collaboration were published today: the joint basic principles for the effective online provision of information, as well as the basic principles for online marketing to children. These publications will be followed up by a joint study of the regulators involved into transparency among influencers.

The individual SDT members will ensure that businesses and organizations that are active in the digital sector inform their buyers fully and in a timely manner, each within their own area of expertise. This information is meant to help people make well-informed choices. “Thanks to behavioral research, we know, for example, that people are only able to process a limited amount of information. More information does not automatically mean more protection”, says Martijn Snoep, current Chair of the SDT and Chairman of the Board of ACM. “That is why we, as regulators, have drawn up basic principles so that, when designing their information, organizations will take into account the effectiveness of the information provided.”

The broad strokes of the basic principles for effective transparency are:

  1. Providing information will only contribute to transparency if people know where to find the information and are also able to understand it.
  2. The use of behavioral and communication insights is needed in designing easy-to-understand and easy-to-find information.
  3. High-quality studies need to be carried out in order to find out whether or not people are able to find and understand information.
  4. Consider using other tools, too, besides providing information, for example, target-group segmentation or optimization of the choice architecture.

These basic principles are fully explained here (in Dutch). Each of the SDT members apply these basic principles in a way that is best suited to them in the exercise of their statutory powers.

One possible next step is that the four regulators will conduct joint behavioral studies into the effectiveness of transparency of influencers, for example regarding their commercial interests. By assessing whether followers see and understand the information provided by influencers about such interests, the SDT members wish to come up with better basic principles for the application of transparency requirements.

Protection of children

Children are extra susceptible to influencing, and are usually less able to foresee the consequences of their online activities than do adults. “For example, children do not always understand the commercial motives behind specific messages or images”, explains Mr. Snoep. “That is why we have also drawn up basic principles for this, so that it is clear to everyone how we, as regulators, interpret the statutory standards for protecting children.”

These basic principles are:

  1. Advertising and marketing techniques cannot unduly influence children, and cannot take advantage of the specific vulnerabilities of children.
  2. Information about the commercial intent of ads, about the commercial aspects of vlogs or services, and about the sharing of personal data in vlogs or services must be presented in such a way that it is appropriate for and clear to children.
  3. Organizations refrain from profiling children for advertising and marketing purposes.
  4. The SDT members call on organizations that develop and use advertising and marketing techniques that are likely seen by children to design their processes in such a way that unfair data processing, misleading practices, and undue influencing of children are prevented.

About the Digital Regulation Cooperation Platform

The Digital Regulation Cooperation Platform (SDT) was created in 2021 by the Netherlands Authority for Consumers and Markets (ACM), the Dutch Authority for the Financial Markets (AFM), the Dutch Data Protection Authority (AP), and the Dutch Media Authority (CvdM) to ensure that each member’s regulatory activities dovetail with each other’s activities in the digital sector. The SDT assesses the opportunities and risks in the digital society, and invests in knowledge and expertise to ensure efficient and effective enforcement of compliance with the rules and regulations (Dutch and European). In addition to the Chamber for general discussions between the four SDT members, two more Offices will be created: a Chamber regarding the enforcement of the DSA (which will look at digital services, such as digital platforms) and a Chamber regarding oversight over algorithms & AI, which will also involve other regulators. The individual regulators will conduct oversight over parts of these regulations, each within their own area of expertise. In addition, the SDT members will discuss any areas of overlap, and where regulatory problems may occur.

See also:

See also