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The rapid evolution of online marketplaces and platforms over the past few years quickly outstripped the ability of regulatory bodies to create effective frameworks for ethical and legal use. Now, governments and agencies worldwide are scrambling to catch up and regulate these digital spaces, leaving a wake of confusing compliance standards and varied deadlines for trust and safety teams to navigate.
Decoding the complex web of international regulations is an uphill battle for trust and safety teams, especially those facing limited resources and increased demand for their expertise. To help trust and safety teams get their footing, Persona compiled the 2024 Regulation Guide for Online Platforms and Marketplaces, which provides a detailed overview of key regulations across the globe with easy-to-digest insights on:
- The types of businesses impacted by specific regulations
- Requirements for compliance and tips for meeting reporting obligations
- Penalties for noncompliance
- How Persona can help streamline compliance efforts
Below is a preview of the key regulations included in our 2024 guide. If you find yourself questioning whether you’re currently required or equipped to comply with these regulations, we invite you to download the guide and get up to speed.
E-commerce fraud regulations
For online platforms and marketplaces, e-commerce fraud is an ongoing challenge. The most recent regulation in the U.S. to tackle e-commerce fraud, the INFORM Consumers Act, takes on the growing issue of fraudulent goods, which is estimated to cost the global economy $500 billion each year.
The INFORM Consumers Act is designed to minimize online marketplace fraud related to the sale of stolen and counterfeit goods. Under the law, online marketplaces and platforms must collect, verify, and disclose certain information about their sellers who complete more than 200 transactions a year, or who bring in at least $5,000 in gross revenues during the year.
Tax-related regulations impacting the U.S. and EU
In the U.S., IRS tax code section 6050W requires businesses using third-party settlement organizations for payment processing (e.g., Zelle, Paypal, Stripe) to produce a Form 1099-K for sellers and service providers when the gross amount of total reportable income or payments exceeds $600 per year. This is a seismic change from previous years, when anyone earning less than $20,000 with fewer than 200 transactions per year were exempt from paying taxes on those earnings.
In the EU, DAC7 requirements will increase tax transparency in the digital economy by ensuring all taxes (both income and value-add) are reported and assessed, even if a platform is not based in the EU or registered in an EU state.
In an effort to reduce the value-added tax (VAT) gap — which was reported by the European Commission to be €93 billion in 2020 alone — the EU made adjustments to VAT requirements. Now, VAT applies to all goods sold online in the EU regardless of price. The VAT is paid where the consumption of goods or services takes place.
Right-to-access and right-to-use regulations across the globe
Right-to-access regulations give individuals the right to obtain a copy of their personal data collected by websites and online platforms. Meanwhile, right-to-use regulations prioritize the creation of safer digital environments and are typically centered on age restrictions and limitations around the use of a platform or site.
The Digital Services Act (DSA) is a right-to-use regulation in the EU which requires online platforms, hosting providers, and other intermediaries that operate in the EU to create safer digital spaces that protect fundamental rights and prevent illegal and harmful activities online. The DSA offers a single transparency and accountability framework across the EU and requires that online platforms provide a mechanism for users to flag illegal content.
U.S. regulations include the Children’s Online Privacy Protection Act (1998), which regulates the online collection and use of personal information from children under the age of 13.
In Brazil, regulations include Lei Geral de Proteção de Dados (LGPD), or the General Law for the Protection of Privacy, which includes extensive requirements around the collection, use, and security of personal data, and focuses on regulating data processing.
Stay on top of the latest regulatory requirements
Persona's 2024 Regulation Guide for Online Platforms and Marketplaces serves as a valuable resource, offering trust and safety teams an overview of the current regulatory landscape and new compliance requirements.
In a world where compliance is paramount, the guide provides a starting point for trust and safety teams to learn about current international platform and marketplace regulations and offers guideposts for teams to discern the potential impact of such regulations on their own businesses. To stay informed and gain confidence in your compliance strategy, download the free guide.
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