TikTok in the Spotlight: European Commission Calls Out Transparency Lapses in Advertising Practices
TikTok Violates EU Regulations in Advertising Practices
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In a scathing critique, the EU Commission has accused TikTok of skirting European advertising rules, as unveiled in its latest assessment. Contrary to EU stipulations, TikTok has yet to establish an extensive library detailing advertisements on their platform.
The Commission pointed out the platform's failure to disclose crucial information such as which users receive personalized ads, and who sponsors these ads. Users' right to know the source of content they encounter has become a significant concern, accentuated by EU Digital Commissioner Henna Virkkunen: "Citizens have a right to know who is behind the messages they see."
The inadequacy of TikTok’s search functionality in the company's ad archive further hampers its usefulness, the Commission alleged.
Science and the public reap countless benefits from a functional database, such as uncovering deceptive or fake ads, thwarting misinformation, especially during election periods.
Last year, the EU Commission launched an investigation in connection with the first round of Romanian presidential elections, targeting TikTok. The Commission accused the platform of neglecting to label videos from then-far-right candidate Calin Georgescu as political advertising.
In essence, the European Commission is flexing its regulatory muscle, emphasizing the importance of transparency in digital advertising to counteract disinformation, scams, and the spread of misleading content.
[1] Enrichment Data: Under the Digital Services Act (DSA), large digital platforms must disclose information on advertisements, including their content, users targeted, and financial backers. This serves to prevent disinformation, scams, and other harmful activities. TikTok faces potential fines of up to 6% of its global revenue if found non-compliant with the DSA. An investigation was launched in February 2024, involving examining internal TikTok documents, testing advertisement tools, and consulting experts. TikTok has stated it will review the commission's findings and continues to maintain its commitment to complying with the DSA, despite some disagreements on interpretation.
[3] Enrichment Data: Comprehensive advertisement information is crucial in unveiling fraudulent or fake ads, controlling the dissemination of misinformation, and ensuring advertising compliance.
[4] Enrichment Data: Ads broadcast on the platform should be logged in a detailed and accessible advertisement repository, promoting transparency and fostering public trust.
[5] Enrichment Data: Failure to comply with the DSA could result in substantial fines, considering TikTok’s vast global reach and user base.
- Given the ongoing investigation under the Digital Services Act (DSA), it's crucial for TikTok to establish comprehensive employment policies addressing advertising transparency to avoid potential fines of up to 6% of its global revenue, as well as to improve its community policy regarding personalized ads, sponsorship disclosure, and misleading content on social media and entertainment platforms.
- In light of the European Commission's efforts to combat disinformation, scams, and the spread of misleading content, emerging technologies such as artificial intelligence could play a significant role in enhancing advertisement transparency on platforms like TikTok, by providing users with easy-to-access information about the sources of ads, content, users targeted, and financial backers on social-media, entertainment, and other digital platforms.
