Latest news with #DigitalServicesAct
RTÉ News
2 hours ago
- Health
- RTÉ News
Commissioner McGrath raises 'SkinnyTok' concerns with TikTok CEO
Michael McGrath, EU Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, has held an online meeting with TikTok CEO Shou Chew. In a statement, Mr McGrath described it as a constructive meeting during which a number of items were discussed including data protection and data flows, consumer protection, the Commission's plans for a Digital Fairness Act, the protection of minors online, and plans for a European Democracy Shield. The Commissioner also raised the trend known as 'SkinnyTok', the social media hashtag which promotes often dangerous advice on weight-loss and dieting. "I raised with Mr Chew the dangers posed to minors in particular by the social media hashtag SkinnyTok," Mr McGrath said. "I reaffirmed that the protection of minors online is a top priority of the European Commission and there are clear obligations on all social media platforms to ensure children are safe online." The risks associated with TikTok's algorithms are already part of the investigation opened by the European Commission against TikTok in February 2024. This investigation is specifically addressing TikTok's mitigation measures in relation to harmful algorithmic recommendation, including in relation to eating disorders. "For his part, Mr Chew said TikTok is taking the matter very seriously and is engaging with Commission officials in the context of the application of the Digital Services Act to ensure the required mitigation is in place," Mr McGrath said. "This is a live investigation which will take its course in the normal way but I felt it was important to reiterate the Commission's strong stance on child protection," he added. In a statement to RTÉ's Morning Ireland, TikTok said it has "strict rules" against dangerous weight loss behaviours on its platform, and the app offers several wellbeing resources, ways to connect with experts. It added that for teenage viewers, some content with harmful body ideals is age restricted.
France 24
4 hours ago
- Business
- France 24
'There's a lot of misunderstanding' on freedom of speech: EU tech sovereignty commissioner
"Freedom of speech is one of our fundamental values in the European Union," Virkkunen remarks. "But it's not as if freedom of speech is above all other rights. Other people have rights also. So we have to be balanced. So if there is, for example, illegal hate speech, it has to be taken down. It's also very important to explain this approach, because there's a lot of misunderstanding." Pushing back on Trump's suggestions that the EU is treating US tech "unfairly", Virkkunen explains: "We have fresh statistics from the last eight months on why online platforms have been removing content, because under our Digital Services Act, they have to report in the European Union if they are removing content. And in 99 percent of cases they are doing that because the content is against their own terms and conditions. Only in 1 percent of cases was the removal based on trusted flaggers in the European Union." The EU Commission is actively enforcing the Digital Services Act, and has opened new investigations. "We are specifically focusing on the protection of minors," Virkkunen says. "We have now opened investigations against adult platforms to make sure that they are protecting minors and that they have the age verification in place. Online shopping is also something where we are facing challenges." As for enforcement of the Digital Markets Act (DMA), Virkkunen mentions the fines recently applied to Meta and Apple, over non-compliance. "Meta and Apple have 60 days to comply with our rules and change the design of their services. We are all the time looking at all the companies who are operating in the European markets, to make sure that they are complying with our rules," she states. Virkkunen was recently in the US, where she met researchers and innovators. The commissioner says that she sees "a lot of interest towards the European Union, from students, researchers, industry startups and companies, because when there is so much uncertainty on the global scale, Europe is seen as a very reliable and stable and predictable place. Also, Europe is an ageing continent, and it's very important for us to attract talented people from all over the world." Virkkunen concedes that the EU is "often criticised for being too slow and bureaucratic. We want to make Europe faster and simpler and easier for businesses. We are looking at SMEs. We are implementing the AI (Artificial Intelligence) Act, and it's important that we do that in an innovation-friendly manner. So if there are parts of the AI Act that overlap with other rules, we are looking at simplifying that also." On startups, Virkkunen says: "This week we launched our startup and scale-up strategy, because we see that many companies have problems to scale up in the European Union. Often the challenge is access to finance, but we also have too many barriers between the member states. So we have to create one single market and use the full potential of the single market." Virkkunen insists that the building blocks for growth in research and innovation in the EU are already in place. "We have 30 percent more researchers than the US per capita when it comes to AI," she asserts. "We have a very strong research and scientific community. We have 7,000 startups working to develop AI. But the infrastructure is a challenge in the European Union, in that we don't have enough computing capacity because we don't have these big tech giants. That's why, with our member states, we are investing in supercomputers. We have identified 13 so-called AI factories, and we have now opened a call for interest on so-called gigafactories. So we want to have very powerful supercomputers in the coming years to make sure that our startups can develop AI. We also want to encourage more AI uptake by the public sector and by industry."
Hindustan Times
6 hours ago
- Business
- Hindustan Times
The shadowy side of e-commerce
Tap a screen, and groceries land at your door. Click a button, and a cab arrives. Swipe right, and a world of entertainment unfolds. The interface is smooth, the experience seamless. But look closer, and you'll notice something peculiar: a hand behind the curtain is constantly nudging you. Sometimes gently. Sometimes hard enough to tip you into decisions you didn't know you were making. These design choices are called 'dark patterns.' Earlier this week, union minister Pralhad Joshi, who oversees consumer affairs, told e-commerce platforms to get their house in order. Conduct internal audits. Weed out manipulative design. Or face action. This follows on the heels of last year's guidelines by the Central Consumer Protection Authority (CCPA), which formally listed and defined what these dark patterns are. The message now is louder, sharper, and more urgent: no more trickery in the name of technology. But defining what specifically are 'Dark Patterns' is where policy makers must begin with, points out Biju Dominic. He is one of India's most thoughtful Behavioural Architects and Chief Evangelist at Fractal Analytics. His point is that persuasion has always been part of commerce. Brands are built on seduction. Creating urgency or nudging in the right place are what marketers have always done. And if a website says only two seats are left on a flight, and there really are only two seats left, that's not deception. That's fair warning. But the claim is false if thirty seats are still available. That's fiction disguised as fact. That's manipulation. That's what needs to go. How do you ensure that? he asks. Also Read: Uber's 'Advance Tip' feature lands it in trouble as CCPA issues notice. Internet drags Ola, Rapido As things are, the CCPA has listed thirteen specific kinds of dark patterns. Some are almost comical in their audacity. There's the sneaky add-on at checkout—the free sample you didn't ask for; or the charitable donation you didn't notice. There's the emotional blackmail that makes you feel stingy for opting out of a newsletter. And then there are the frustrating subscription traps. Signing up is easy. Cancelling is a maze. Just try unsubscribing from one of those free trials. The button is always hidden, the steps always obscure. According to a 2024 report by the Advertising Standards Council of India, 52 of the top 53 most-downloaded Indian apps use at least one of these tactics. This isn't marginal. It's mainstream. Complaints have surged. Eleven platforms, including Uber, Ola, Zomato, Swiggy, Zepto and Rapido, have already received legal notices. The government isn't bluffing. It's pushing for accountability. India isn't alone. Europe's Digital Services Act, now in full effect, bars online platforms from using deceptive design. California's consumer privacy law says consent obtained through trickery isn't valid. The U.S. Federal Trade Commission fined Epic Games a massive $245 million for making it hard to cancel Fortnite subscriptions. Around the world, regulators are waking up to the same reality: clever design is not always ethical design. What's at stake isn't just the money lost in hidden fees. It's something deeper. Dark patterns chip away at trust. They eat into our time, test our patience, and quietly erode confidence in digital platforms. The toll isn't just financial. It's psychological. But before we sharpen our pitchforks, it's worth listening to Dominic again. He argues for a more nuanced take. Not all nudges are evil. Human beings, he reminds us, don't make decisions as rationally as we think. Much of what we do is subconscious. So if a prompt nudges you toward a useful service, say, buying travel insurance, is that really wrong? What if it protects you? What if it helps? Dominic draws a line not by asking what the platform did, but by examining what it was trying to achieve. If the goal is to help, perhaps the nudge is justifiable. But if the tactic steers you into online gambling, or tricks you into sharing data, then it crosses the line. Intent matters. Context matters. Data collated from multiple sources that include the 'Wall Street Journal' indicates that digital businesses are under stress. Click-through rates have collapsed from 40 percent a few years ago to 0.035 percent now. Cart abandonment sits at 70 percent. In the U.S., 17 percent of sold goods are returned. In such a brutal environment, the temptation to do whatever it takes to sell is real. Also Read: E-commerce boosting MSME growth The challenge then is to separate persuasive design from manipulative design. To accept that marketing isn't the enemy, but bad faith is. That means regulators need to be sharp, consumers need to be awake. And platforms need to remember that trust is hard-earned and easily lost. Encouragingly, India is not just playing watchdog. It's offering tools. The Jagriti App lets users report shady designs. The Jago Grahak Jago portal now gives real-time trust ratings for e-commerce platforms. And a new joint working group involving the government, companies, and consumer rights groups is looking to keep the conversation alive. This won't end dark patterns. But it signals good intent. For every Indian consumer who has ever clicked in frustration, felt cheated at checkout, or been trapped in an endless unsubscribe loop, that would be welcome news.
Irish Examiner
a day ago
- Business
- Irish Examiner
Fake discounts and pressure tactics: How Shein has become the target of Ireland's consumer watchdog
Chinese fast fashion brand Shein is usually in the news because of its poor human rights and environmental record. This week, its anti-consumer practices came under the spotlight. The Competition and Consumer Protection Commission (CCPC), along with the European Commission and national consumer authorities in Belgium, France and The Netherlands have called on Shein to rectify several practices on its platform that potentially breach EU consumer law. Shein routinely uses fake discounts, which seem to offer better deals by showing price reductions, but these reductions are not actually based on prior prices, as required by EU law. They also use pressure tactics: using false deadlines to make consumers feel they have to act now or lose out on a bargain. The consumer body says the site also displays incomplete and incorrect information about a consumer's rights to return goods and receive refunds. There's also deceptive labelling, where it's suggested the product offers something special when in fact the relevant feature is required by law. Misleading claims is another issue. This is where the site gives false or deceptive information about the sustainability benefits of certain products. And if you want to contact Shein with questions or complaints, you're going to have trouble finding its contact details — another potential breach of consumer law. The CCPC says information has been requested to assess the company's compliance with further obligations, including those around product rankings, ratings and reviews, and third-party sellers. Shein now has one month to propose commitments on how it will address the identified consumer law issues. Picture: Reuters/Dado Ruvic/Illustration Last April, Shein was designated as a Very Large Online Platform under the Digital Services Act. Shein then had four months to comply with the most stringent obligations applicable to these platforms. These include the obligation to assess and mitigate any systemic risks stemming from its services. The European Commission is currently carrying out a preliminary Digital Services Act investigation of Shein that concerns, among other things, the presence of illegal content and goods on Shein's marketplace, the transparency of its recommender systems and measures to mitigate risks relating to consumer protection, public health and users' wellbeing. The ongoing investigation, which is being carried out through the European Commission's Consumer Protection Cooperation (CPC) network is co-led by the CCPC, together with consumer authorities in Belgium, France and The Netherlands under the coordination of the European Commission. Shein now has one month to propose commitments on how it will address the identified consumer law issues. Depending on its reply, the CPC may enter a dialogue with the company, and if it does not address the concerns identified, national authorities may take enforcement measures to ensure compliance. Any resultant fines will be based on the company's annual turnover in the relevant member states. Patrick Kenny is a member of the CCPC. He says consumers should be allowed to shop without being put under pressure by fake deadlines or misled by fake discounts. They also need clear information about how consumers can contact the company, how to return an item and receive a refund. In this case, the CCPC and the CPC network have identified several practices that could mislead consumers or undermine their consumer rights. "E-retailers and online marketplaces have a legal obligation to provide transparent and honest information about the products they sell, and consumers' rights around returns. The CCPC takes any breaches of the law very seriously and looks forward to constructive engagement with Shein during the course of this investigation.' Boots Ireland pleaded guilty to breaking sales-pricing legislation. File picture The big problem with Shein is, of course, its contribution to ecological degradation and abusive labour practices. A recent BBC investigation into the online retailer found workers were routinely spending 75 hours a week bent over sewing machines — in contravention of China's own labour laws. In 2023, the company admitted to finding two cases of child labour in its supply chain. The company's runaway success has been built on selling dresses and tops that cost next to nothing, which is a seductive business model in an era of runaway inflation on almost everything else. But i n a world in climate crisis, how we choose to spend our money today has a direct impact on the lives of others. Buying cheap clothes that don't last is getting more and more difficult to justify. Meanwhile, the CCPC has also been busy bringing Irish-based retailers into line with sales pricing legislation. In the Dublin District Court on Monday, Boots Retail (Ireland) Limited pleaded guilty to breaking this legislation. The pharmacy and beauty chain was ordered by Judge Anthony Halpin to pay €1,000 to the Little Flower Penny Dinners charity and to pay the costs of the Competition and Consumer Protection Commission. Section 1 of the Probation of Offenders Act "is to be applied upon compliance with the court order". The prosecution was brought by the CCPC against Boots Ireland following online sweeps conducted over the 2023-2024 winter sales season, including Black Friday. CCPC chair Brian McHugh: 'Businesses need to be able to compete for consumers openly and honestly on price.' This case forms part of the first wave of prosecutions under sales pricing legislation introduced in 2022, after Lifestyle Sports, DID Electrical, and Rath-Wood also pleaded guilty to breaking the same legislation in March of this year. The law requires traders to base any discount on the lowest price in at least the previous 30 days, and to display this price clearly on any price tag or advertisement. Suppose, for example, a product is priced at €1,649 from December 23, 2024, to January 24, 2025. On January 25, 2025, until February 8, 2025, the price of the product is increased to €1,949. On February 9, 2025, the price is reduced to €1,579 with an indicated prior price of €1,949 in the price reduction announcement, despite the lowest price in the previous 30 days before this reduction being €1,649. If a trader increases the price of a product for a short period before immediately reducing the price back to its previous price, the trader can't use this briefly-increased price as the prior price in its price reduction announcement, as this is not the lowest price in at least the previous 30 days. Chairperson of the CCPC, Brian McHugh, pointed out that misleading sale discounts harm consumers and harm competition. 'Businesses need to be able to compete for consumers openly and honestly on price. Transparency around sales discounts allows consumers to make informed decisions about their purchases and to shop with confidence.'
India.com
a day ago
- Business
- India.com
Bad news for Mukesh Ambani, Isha Ambani's partner firm as EU serves warning, issues 30-day deadline for..., the company is...
(File) In a major setback for Shein, the Chinese fast- fashion giant which was recently reintroduced into the Indian market by Asia's richest man Mukesh Ambani, and his daughter, Isha Ambani, the European Union (EU) has charged the Chinese firm with gross violations consumer protection laws, and served a 30-day deadline to address these issues. Shein found violating consumer protection laws in EU As per EU's Consumer Protection Cooperation Network, Shein often shows 'fake discounts' by displaying price cuts that don't reflect actual previous prices, according to reports. The regulator also castigated the Chinese fashion brand of employing manipulative tactics like phony purchase deadlines that are designed to pressure customers into buying their products at these 'discounted' prices. Many Shein products were also found to carry deceptive product labels which falsely suggest items have special features when those characteristics are legally required, and misleading sustainability claims that don't match reality, investigators have revealed. The firm has also been charged with other violations, including hiding company contact information from customers, incomplete refund policies, and making it difficult for consumers to reach customer service representatives in case of grievances. EU serves 30-day deadline Following the allegations, regulators in the EU have served a 30-day deadline to Shein to address these violations or face fines worth up to 6 percent of the company's global revenue. Shein has been directed to respond to the EU's findings by late June or face penalties based on its sales in affected member countries. 'We will not shy away from holding e-commerce platforms to account, regardless of where they are based,' EU Justice Commissioner Michael McGrath stated. Notably, the EU had last year designated Shein as a 'very large online platform' under the Digital Services Act, which subjected the firm to stricter rules requiring the removal of illegal goods and content from its platform. Any violations could invite fines up to 6% of its global turnover. Shein fails to make impact in India In February 2025, Reliance Retail, under the leadership of Isha Ambani– the only daughter of billionaire Mukesh Ambani– brought back Shein to the Indian market, nearly five years after the Indian government had banned the original Shein app in the country in wake of India-China tensions at the time. However, Shein's previous popularity has not translated into current success as the popular Chinese fashion brand has failed to gain any significant traction in India since its return.
