Consumer protection

Meta’s oversight board seeks public input on immigration posts

Meta’s Oversight Board has opened a public consultation on immigration-related content that may harm immigrants following two controversial cases on Facebook. The board, which operates independently but is funded by Meta, will assess whether the company’s policies sufficiently protect refugees, migrants, immigrants, and asylum seekers from severe hate speech.

The first case concerns a Facebook post made in May by a Polish far-right coalition, which used a racially offensive term. Despite the post accumulating over 150,000 views, 400 shares, and receiving 15 hate speech reports from users, Meta chose to keep it up following a human review. The second case involves a June post from a German Facebook page that included an image expressing hostility toward immigrants. Meta also upheld its decision to leave this post online after review.

Following the Oversight Board’s intervention, Meta’s experts reviewed both cases again but upheld the initial decisions. Helle Thorning-Schmidt, co-chair of the board, stated that these cases are critical in determining if Meta’s policies are effective and sufficient in addressing harmful content on its platform.

US SEC files appeal in Ripple case focusing on XRP sales

The US Securities and Exchange Commission (SEC) has filed an appeal in its case against Ripple, though it does not challenge the court’s decision that XRP is not a security. Instead, the SEC’s appeal, submitted on 16 October, questions Ripple’s XRP sales on exchanges and personal sales by its executives, Brad Garlinghouse and Chris Larsen.

Ripple’s chief legal officer, Stuart Alderoty, clarified that the ruling regarding XRP’s status as a non-security remains unchanged. Ripple is set to file its own Form C in response within seven days, and both parties will agree on a briefing schedule for the ongoing case.

The legal process is expected to take up to 90 days, with the SEC required to file its first brief within that period. Ripple’s legal team remains confident as the case progresses.

New Report: Mozilla and Open Markets warn about big tech monopolising AI

The Open Markets Institute and Mozilla just published the ‘Stopping Big Tech from Becoming Big AI’ report, that urges global regulators to combat the monopolisation of the AI industry by a few dominant tech giants.

The authors make several points relevant to the global AI discussions. First, as AI becomes integral to the global economy, warning echo of the looming threat of concentrated corporate control, which risks stifling innovation, compromising consumer privacy, and undermining democratic values. To combat it, the authors advocate for a diverse AI market that includes public, private, and non-profit stakeholders to ensure the technology’s benefits are widely distributed.

Second, the report mentions monopolistic risks, through tactics such as exclusive partnerships and control over computing power that allow dominant firms to consolidate power, restricting competition and innovation. Despite often being unseen by consumers, these practices could centralise AI development and inhibit market diversity. As an action point, the authors call on governments to act swiftly using existing regulatory tools, such as blocking mergers and enforcing ex-ante competition policies, to dismantle these barriers and impose fair access rules on essential AI resources.

Finally, international cooperation is one of the key points, particularly the importance of recognising the global nature of AI development. Authors warn against repeating past mistakes of digital market dominance, emphasising the need for a unified approach to AI regulation. Through fostering competition, the report asserts that AI can deliver broader societal benefits, prioritising innovation and privacy over profit maximisation and surveillance.

Why does it matter?

The global community sees the current moment as a pivotal chance to shape AI’s future for the collective good, urging immediate regulatory intervention. Echoing this approach, this report aims to ensure that AI remains a competitive field characterised by transparency and fairness, safeguarding a digital economy that benefits all stakeholders equally.

New safety regulations set for social media platforms by UK regulator

Starting in December, Britain’s media regulator Ofcom will outline new safety demands for social media platforms, compelling them to take action against illegal content. Under the new guidelines, tech companies will have three months to assess the risks of harmful content or face consequences, including hefty fines or even having their services blocked. These demands stem from the Online Safety Bill passed last year, aiming to protect users, particularly children, from harmful content.

the UK‘s Ofcom’s Chief Executive Melanie Dawes emphasised that the time for discussion is over, and 2025 will be pivotal for making the internet a safer space. Platforms such as Meta, the parent company of Facebook and Instagram, have already introduced changes to limit risks like children being contacted by strangers. However, the regulator has made it clear that any companies failing to meet the new standards will face strict penalties.

Alabama man arrested for hacking SEC’s X account

A 25-year-old man from Alabama has been arrested for hacking the US Securities and Exchange Commission’s X account in a scheme to manipulate Bitcoin prices. The incident, which occurred in January, involved a false post on the SEC’s account claiming the approval of Bitcoin exchange-traded funds, briefly causing Bitcoin’s price to rise by $1,000. The SEC swiftly deleted the post and denied the message, but the hack sparked criticism over security vulnerabilities on X.

The suspect, Eric Council Jr., used a SIM-swapping technique to access the account and later received Bitcoin as payment for his involvement in the hack. Following the incident, he reportedly searched online for information on how to avoid FBI detection. Council now faces charges of conspiracy to commit aggravated identity theft and access device fraud.

The SEC expressed its gratitude to law enforcement for their prompt action in the case, while the incident reignited concerns over the security of social media platforms, particularly since X’s acquisition by Elon Musk.

US adopts ‘click to cancel’ rule for easier subscription management

The United States Federal Trade Commission (FTC) has introduced a new ‘click to cancel‘ rule, designed to simplify the process of ending subscriptions. The rule mandates that businesses must make it just as easy for consumers to cancel a subscription as it is to sign up for one, and requires customer consent before renewing subscriptions or converting free trials into paid services.

Under the new regulations, businesses will no longer be allowed to force customers to navigate chatbots or agents to cancel subscriptions initiated via an app or website. The rule will take effect in about six months and aims to save consumers time and money by eliminating unnecessary hurdles. For subscriptions made in person, companies must provide an option to cancel by phone or online.

The FTC has previously sued Amazon and Adobe for making it difficult for consumers to cancel subscriptions. Amazon was accused of using misleading website designs to push people into automatic Prime renewals, while Adobe allegedly imposed hidden fees and unclear cancellation terms. Both companies have rejected the claims.

Similar measures have also been adopted in the United Kingdom. The Digital Markets, Competition and Consumers Act 2024 ensures that businesses must give clear information to customers before they enter into subscription agreements, and make it easier for them to cancel or end contracts.

EU decision gives X flexibility amid big tech regulations

The European Commission has determined that X, Elon Musk’s social media platform, does not qualify as a ‘gatekeeper’ under the Digital Markets Act (DMA), exempting it from additional compliance obligations. The Commission’s decision follows a May investigation initiated after X asserted it was not a key intermediary between businesses and consumers. While X meets user thresholds and turnover criteria, the Commission clarified that it does not significantly connect business users with end consumers.

Under the DMA, which took effect in 2023, companies must have at least 45 million end users and 10,000 business users in Europe, along with an annual turnover of €7.5 billion over the last three years, to be classified as gatekeepers. Major tech firms like Google, Amazon, Apple, Meta, Microsoft, and TikTok’s parent company ByteDance have already received gatekeeper status, imposing on them strict regulations to ensure fair competition and consumer choice.

Apple has faced penalties under the DMA, with the European Commission ruling in June that its App Store practices violated the regulations. While several companies, including Apple and Meta, have appealed their gatekeeper designations, X remains unaffected by these rules for now. This decision allows X more operational flexibility compared to its competitors, although it indicates that the Commission is closely monitoring the interactions between large platforms, businesses, and consumers in the digital marketplace.

US FCC investigates telecom firms over data cap policies

The Federal Communications Commission (FCC) has announced a formal inquiry into the use of data caps by telecom companies. The investigation aims to assess how these caps impact consumers and market competition, particularly in an increasingly connected world.

FCC Chair Jessica Rosenworcel expressed concerns about the effects of limiting internet usage. She pointed out that data caps could harm small businesses by cutting off access to customers, penalise low-income families with additional fees, and limit essential communication tools for people with disabilities.

Rosenworcel noted that, for many Americans, rationing internet use would be unthinkable. However, millions of people across the country constantly face limitations on their data usage, which may hinder their ability to stay connected.

The inquiry is expected to explore whether these caps unfairly limit consumer choice and what impact they have on competition among telecom providers.

Kenya strengthens ICT sector through new regulatory framework and ICT Authority Bill 2024

The Kenya Communications Authority (CA) has mandated that all dealers of ICT equipment, including manufacturers, vendors, importers, and service providers, undergo a type approval process before connecting devices to the Public Switched Telecommunication Network (PSTN).

That requirement applies to a wide range of devices, such as smartphones, routers, modems, tablets, vehicle trackers, and other networking equipment, thus ensuring that these products meet national and internationally recognised standards. The directive aims to safeguard consumer health, uphold public interest, secure telecommunications networks within the country and enforce compliance through legal penalties.

Specifically, non-compliance can lead to fines reaching up to Ksh5 million ($38,759) and prison sentences of up to three years for serious infractions, while lesser offences carry penalties of up to Ksh250,000 ($1,937). Furthermore, the CA’s regulations address cybercrime by equipping authorities with the means to detect, prevent, investigate, and prosecute computer-related offences, thereby contributing to a safer digital environment in Kenya.

Additionally, to boost revenue, the Kenyan government plans to block devices imported without proper tax documentation from network activation, specifically targeting phones and other ICT equipment lacking tax records. That move strengthens regulatory control over ICT imports, promoting fair taxation and compliance with local laws.

Moreover, the proposed ICT Authority Bill 2024, introduced in May, will require ICT operators to secure operational licenses, further enhancing the quality, security, and efficiency of ICT services in Kenya. Ultimately, the bill aims to support Kenya’s digital economy and ensure that ICT infrastructure aligns with national development goals.

US FCC to implement new rules for robocalls and robotexts

The US Federal Communications Commission (FCC) has announced new rules to enhance consumer protections against unwanted robocalls and robotexts, which are increasingly becoming a nuisance for individuals across the nation. Set to take effect on 11 April 2025, these guidelines will allow consumers to revoke their consent for receiving such communications in ‘any reasonable way.’

Specifically, this includes using automated opt-out mechanisms during calls, replying ‘stop’ to text messages, or visiting a designated website or phone number provided by the caller. Moreover, companies must process opt-out requests within a maximum of 10 business days from receipt, and they can send a one-time confirmation text to acknowledge the opt-out request, provided that it does not contain any marketing content.

These rules are particularly significant for the mortgage industry, which has faced criticism for practices like ‘trigger leads,’ where companies purchase consumer information for solicitation. Consequently, by incorporating the Homebuyers Privacy Protection Act of 2024 into the National Defense Authorization Act, the FCC reinforces its commitment to consumer privacy and trust in the mortgage sector, encouraging companies to adopt ethical marketing strategies.

Overall, these new measures represent significant steps toward empowering consumers and enhancing their overall experience with telecommunications services. Implementing these guidelines holds companies accountable for adhering to updated regulations, ensuring that consumers can effectively manage their communication preferences. The proactive approach addresses consumer concerns and fosters a more transparent and trustworthy environment in electronic communications.