Consumer protection Archives | Digital Watch Observatory

Council of Europe issues new guidance on AI and gender equality

Ahead of International Women’s Day on 8 March, the Council of Europe adopted two new recommendations addressing gender equality and the prevention of violence against women in the context of emerging technologies.

One recommendation targets the design and use of AI to prevent discrimination, while the other focuses on accountability for technology-facilitated violence against women and girls.

The AI recommendation advises member states on preventing discrimination throughout the lifecycle of AI systems, from development to deployment and retirement. It highlights risks like gender bias while promoting transparency, explainability, and safeguards.

Special attention is given to discrimination based on gender, race, and sexual orientation, gender identity, and expression (SOGIESC).

The second recommendation sets the first international standard for addressing technology-facilitated violence against women. It outlines strategies to overcome impunity, including clearer legal frameworks, accessible reporting systems, and victim-centred approaches.

Emphasis is placed on multistakeholder engagement, trauma-informed policies, and safety-by-design in technology products to prevent digital harm.

Both recommendations reinforce the importance of combining regulation, institutional support, and public awareness to ensure technology advances equality rather than perpetuates harm.

The formal launch is scheduled for 10 June 2026 at the Palais de l’Europe in Strasbourg during an event titled ‘From standards to action: making accountability for technology-facilitated violence against women and girls a reality.’

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China expands oversight of youth online safety

China has introduced new measures to regulate online information that could affect the physical and mental health of minors. Authorities in China said the rules will take effect on 1 March and aim to improve protection for young internet users.

The regulators identified four categories of online information that may harm minors. The authorities have also addressed emerging risks linked to algorithmic recommendations and generative AI technologies.

The framework in China requires internet platforms and content creators to prevent and respond to harmful material. Regulators said companies must strengthen the monitoring and governance of content affecting minors.

Authorities said the measures are designed to create a cleaner online environment for children. Officials also stressed greater responsibility for platforms that manage digital content used by minors.

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OpenAI upgrades ChatGPT conversations with GPT-5.3 Instant

The most widely used ChatGPT model has received an update from OpenAI, introducing GPT-5.3 Instant to make everyday conversations more coherent, useful, and natural.

An upgrade that focuses on improving tone, contextual understanding, and the flow of dialogue rather than only benchmark performance.

One of the main improvements concerns how the model handles refusals and safety responses. Earlier versions sometimes declined questions that could have been answered safely or delivered overly cautious explanations before responding.

GPT-5.3 Instant instead gives more direct answers while still maintaining safety constraints, reducing interruptions that previously slowed conversations.

The update also improves the way ChatGPT uses information from the web. Instead of simply summarising search results or presenting long lists of links, the model now integrates online information with its own reasoning.

Such an approach aims to produce more relevant answers that highlight key insights at the beginning of responses.

Reliability has also improved. Internal evaluations conducted by OpenAI show reductions in hallucination rates across multiple domains.

When using web sources, hallucinations dropped by roughly 26.8 percent in higher-risk fields such as medicine, law, and finance. Improvements were also recorded when the model relied only on its internal knowledge.

Beyond factual accuracy, the model is designed to feel more natural in conversation. OpenAI says the system now avoids overly preachy language, unnecessary disclaimers, and intrusive remarks that previously disrupted dialogue.

The goal is a more consistent conversational personality across updates, while maintaining the familiar user experience of ChatGPT.

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Australia reviews children’s social media ban

Australia has begun reviewing its ban on social media accounts for children under 16, introduced in December 2025. Australia’s eSafety Commissioner is tracking more than 4,000 children and families to assess how the policy works in practice.

Researchers in Australia will analyse surveys, interviews and voluntary smartphone data to measure how young people interact with apps. Officials in Australia aim to understand how the ban affects children, parents and everyday online behaviour.

Early reactions in Australia have been mixed, with some teenagers telling media outlets they bypass age verification systems. Platforms reportedly remain accessible to some minors in Australia.

Meanwhile, the UK government has launched a public consultation on potential social media restrictions for children. Policymakers in the UK are seeking views on bans, stronger age verification and limits on addictive platform features.

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EU considers placing Roblox under strict Digital Services Act rules

European regulators are examining whether Roblox should fall under the Digital Services Act’s most stringent obligations rather than remain outside the bloc’s most demanding platform rules.

The European Commission began analysing the gaming platform’s reported user figures after the company disclosed roughly 48 million monthly users across the EU.

Numbers above the threshold could qualify Roblox as a Very Large Online Platform under the DSA. Such a designation would mark the first time a gaming platform enters the category alongside social media services already subject to heightened oversight.

Platforms receiving the label must conduct regular risk assessments, submit mitigation reports and demonstrate stronger safeguards for minors.

Regulatory pressure has already begun at the national level. The Dutch Authority for Consumers and Markets launched an investigation in January after concerns that children could encounter violent or sexually explicit content within Roblox games or interact with harmful actors through online features.

Designation at the EU level would transfer supervisory authority to the European Commission, enabling wider investigations and potential fines if violations occur. Officials are still verifying user data before making a formal decision, and no deadline has been announced for the process.

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X suspends creators over undisclosed AI armed conflict videos

Social media platform X will suspend creators from its revenue-sharing programme if they post AI-generated videos of armed conflict without proper disclosure. The penalty lasts 90 days, with permanent removal for repeat violations.

Head of product Nikita Bier said access to authentic information during war is critical, warning that generative AI makes it easy to mislead audiences. The policy takes effect immediately.

Enforcement will combine generative AI detection tools with the platform’s Community Notes fact-checking system. X, formerly Twitter, says the move is designed to prevent creators from profiting from deceptive conflict content.

The Creator Revenue Sharing Programme allows paid X subscribers to earn advertising income from high-performing posts, but critics argue it encourages sensational material. AI-generated political misinformation and deceptive influencer promotions outside armed conflict scenarios remain unaffected by the new rule.

Financial penalties may limit incentives for the dissemination of misleading war footage, yet broader concerns about AI-driven misinformation on social media persist.

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How AI training data is influencing what users believe

A new Yale study, published in PNAS Nexus, has found that AI chatbots can subtly shift users’ social and political opinions, even when asked for factual information and with no intent to persuade.

Researchers tested nearly 1,912 participants, comparing responses to AI-generated summaries of historical events with those to Wikipedia entries, and found measurable differences in opinion.

The culprit, researchers say, is ‘latent bias’, ideological leanings embedded in the data used to train large language models that subtly colour the framing of otherwise accurate responses.

Default summaries generated by GPT-4o consistently nudged readers towards more liberal opinions compared to Wikipedia entries, even without any deliberate prompting.

Senior author Daniel Karell warned that whilst the effects are modest in isolation, they could compound significantly for users who regularly consult chatbots for information.

Unlike Wikipedia, which makes its editorial process transparent, AI development remains largely opaque, giving the companies behind these models an unacknowledged ability to shape public opinion.

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Crypto exchanges face strict 2027 reserve rules under new Brazil framework

Brazil’s central bank has introduced a regulatory framework requiring licensed crypto exchanges to prove asset sufficiency daily starting on 1 January 2027. The measures align digital asset intermediaries with banking standards on capital management, accounting, and data protection.

Under the rules, exchanges must submit daily attestations confirming that platforms hold adequate fiat and token reserves. Supervisors will review the reports to ensure companies can cover operational, liquidity, and cybersecurity risks while protecting customer balances.

The framework also mandates strict segregation of company and client assets. Exchanges must maintain separate accounts for customer fiat and digital holdings to prevent commingling of funds and improve transparency for regulators.

Platforms operating in Brazil will also be required to follow a specialised accounting manual for digital assets. Standardised rules for classification, valuation, and impairment aim to ensure financial statements clearly reflect exposures across regulated entities.

Authorities will expand oversight of cross-border transfers handled by domestic crypto exchanges. Platforms must report the origins of transactions and the blockchain pathways they follow. The central bank said the framework aims to strengthen resilience and protect customer funds.

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OneTrust’s new CEO outlines AI governance ambitions

OneTrust has entered a new leadership phase in the US after appointing John Heyman as chief executive, replacing founder Kabir Barday. Barday will remain on the board in an advisory role as the US-based compliance technology firm continues to push into AI governance.

John Heyman said organisations across the US and globally are rapidly integrating AI into daily operations. Companies deploying large numbers of AI agents increasingly need tools to manage risk, data use and regulatory compliance.

OneTrust believes demand for governance technology will grow as AI systems multiply inside businesses in the US and worldwide. John Heyman described a future where automated monitoring tools oversee AI agents operating within company systems.

Leadership at OneTrust in the US aims to build systems that track how AI agents collect and share data while maintaining enterprise control. Growing adoption of AI in the US and globally continues to drive demand for responsible governance platforms.

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Cybercriminals shift to stolen credentials and AI-enabled attacks

Ransomware attacks are increasingly relying on stolen passwords rather than traditional malware, according to Cloudflare’s latest annual threat report. Attackers now exploit legitimate account credentials to blend into regular traffic, making breaches harder to detect and contain.

Manufacturing and critical infrastructure organisations account for over half of targeted attacks, reflecting their high operational stakes.

Cloudflare highlighted that AI is enabling attackers to prioritise speed and scale over technical sophistication. Generative AI lets criminals automate fraud, hijacking email threads and targeting a ~$49,000 sweet spot to maximise profit while avoiding scrutiny.

Nation-state actors also leverage legitimate platforms for command-and-control operations, with Russia, China, Iran, and North Korea each following distinct cyber strategies.

Researchers warned that modern ransomware is less a malware crisis and more an identity and access challenge. Attackers using authorised credentials can bypass defences and execute high-impact extortion, marking a significant shift in global threat vectors.

The report urges businesses to strengthen identity security, monitor access, and defend against AI-driven attacks that exploit impersonation and automation at scale.

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