Consumer protection Archives | Digital Watch Observatory

Vietnam introduces mandatory labels for AI-generated content

Vietnam will require disclosure labels for certain AI-generated and AI-edited content from May under a new government decree aimed at improving online transparency.

Under Decree 142/2026/ND-CP, organisations and individuals using AI systems must disclose when content has been created or altered by AI in ways that could affect perceptions of authenticity.

The rules apply to AI-generated or AI-edited audio, image, and video content, particularly material imitating real people or realistic events. Particularly, it applies to content that imitates the appearance or voice of real people or recreates real-life events in a convincing manner. According to the decree, disclosures must be clear, visible, and recognisable before or during user access to the content.

The decree states that disclosures designed to obscure the AI-generated nature of content will not satisfy the requirements. Anyways, several exemptions are included. Several exemptions are included, such as technical quality improvements that do not materially alter content.

The framework also excludes certain AI-assisted editing functions, including spelling correction, translation, summarisation, and grammar editing, where original meaning is preserved. Additional exemptions apply to internal organisational use and controlled research or testing environments not intended for public release. At the end, content produced during research, development or testing activities in controlled environments and not released to the public is also an exemption.

Authorities said disclosures may take different forms depending on content type, including labels, captions, interface notices, or audio announcements. Labels may appear directly on content, in titles, captions and descriptions, through platform interfaces or even as audio announcements. Films and artistic productions may include disclosures in opening sections, end credits or supporting materials.

Responsibility for compliance will apply both to parties generating AI content and those distributing it publicly. Parties generating or editing AI content must provide the information needed for labelling, while those publishing the material to the public must ensure disclosure rules are followed.

Vietnam’s Ministry of Science and Technology is expected to publish additional technical guidance related to the implementation of the disclosure framework. Officials said the guidance would not create additional administrative procedures or business conditions or obligations beyond those already outlined in the decree.

Why does it matter?

The decree reflects broader international efforts to improve transparency around AI-generated media as synthetic content becomes more realistic and widely accessible. Disclosure requirements are increasingly being explored by governments as a way to address misinformation risks, impersonation concerns, and public trust in digital content.

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European Commission delays tech sovereignty package again

The European Commission has postponed the presentation of its tech sovereignty package until 3 June, following several earlier delays. The publication had previously been scheduled for 25 March, 15 April and 27 May.

According to Euractiv, the package is expected to include the proposed Cloud and AI Development Act and Chips Act 2. The initiatives are intended to support digital infrastructure development and strengthen Europe’s semiconductor sector. The measures are also expected to encourage data centre investment and semiconductor manufacturing within the EU.

The latest postponement follows comments from the US ambassador to the EU concerning potential trade implications of European digital regulation. Euractiv additionally reported uncertainty regarding a proposed EU open-source strategy previously linked to the package.

The European Commission did not comment publicly on the latest delay.

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Consumer groups file DSA complaints against Meta, TikTok and Google

Consumer organisations have filed complaints against Meta, TikTok, and Google over alleged failures to address financial scam advertising on their platforms.

The complaints were submitted by the European Consumer Organisation (BEUC) and partner organisations to the European Commission and national authorities under the Digital Services Act. According to research cited by the organisations, nearly 900 suspected fraudulent advertisements were identified across 13 countries between December 2025 and March 2026.

The groups said a relatively small proportion of reported content was removed, while many notices were allegedly rejected or received no response. Consumer organisations argued that the reported moderation response may leave users exposed to large volumes of potentially fraudulent advertising content.

BEUC and partner organisations are calling for investigations into whether the platforms are complying with Digital Services Act obligations related to systemic risks and harmful content.

The organisations also urged regulators to consider enforcement measures if non-compliance is identified, arguing that current moderation efforts are insufficient to mitigate systemic risks linked to online financial fraud.

Why does it matter?

The case highlights a broader issue of how effectively large online platforms can be held accountable for systemic risks such as financial scams. When reported fraudulent ads remain online at scale, it raises questions about whether existing regulatory tools are strong enough to protect consumers in practice.

It also puts pressure on enforcement bodies to move beyond complaint handling and ensure meaningful, consistent compliance across the digital advertising ecosystem.

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European Commission opens consultation on crypto-assets regulation

The European Commission has launched a public consultation on the functioning of the EU’s Markets in Crypto-Assets Regulation, seeking feedback from stakeholders and the wider public as digital asset markets continue to evolve.

Implemented in 2024, MiCA established the EU’s harmonised regulatory framework for crypto-assets and related services. It covers crypto-assets, asset-referenced tokens, e-money tokens, stablecoins, their issuers and crypto-asset service providers operating across the bloc.

The Commission said crypto-asset markets and the wider policy landscape have continued to expand since MiCA was developed. It is assessing whether the current framework remains fit for purpose in light of market and international regulatory developments.

The consultation seeks feedback on MiCA’s main building blocks. It includes a public questionnaire for individuals and a targeted consultation covering more technical and legal questions for stakeholders such as digital asset issuers and service providers, financial institutions, technology providers, academia, think tanks, industry bodies, consumer organisations and the EU public authorities.

Feedback submissions are open until 31 August. The Commission said the responses will inform its future policy work on digital assets.

Why does it matter?

The consultation shows that crypto regulation is entering a more adaptive phase, in which policymakers are assessing whether existing rules can keep pace with evolving markets and international approaches. Any future adjustment to MiCA could affect stablecoin issuers, crypto service providers, investors and wider digital finance policy in the EU, while also influencing regulatory debates in other jurisdictions.

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PARITY Act pushes new US crypto tax relief framework

A bipartisan group of US lawmakers has introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields Act, known as the PARITY Act, as Congress continues expanding its focus on cryptocurrency regulation and taxation.

Representatives Steven Horsford, Max Miller, Suzan DelBene and Mike Carey introduced the proposal on 19 May, calling for clearer and more practical tax standards for digital assets. Supporters say the bill is intended to provide clarity, consistency and guardrails for the taxation of digital asset activities.

The proposal would create a deemed-basis rule for regulated, dollar-pegged payment stablecoins, treating certain digital dollars used like cash as cash for tax purposes. Lawmakers say the measure is designed to reduce administrative burdens for the Internal Revenue Service, provide consumer relief in routine transactions and prevent misuse through trading or arbitrage activity.

The bill would also provide tax certainty for foreign investors trading on US digital asset platforms, extend securities-lending tax principles to qualifying digital asset loans and apply anti-abuse provisions such as wash-sale and constructive-sale rules to digital assets.

Additional provisions would align the tax treatment of professional digital asset dealers and active traders with existing securities markets by allowing a mark-to-market election. The bill would also address the ‘phantom income’ issue for miners and stakers by creating an election for when digital asset rewards are taxed, modernise charitable contribution rules for digital assets and clarify that passive protocol-level staking by investment funds is not a trade or business.

The measure arrives as Congress debates broader cryptocurrency legislation linked to market structure and stablecoin oversight, including the CLARITY Act. Together, the proposals show how US lawmakers are increasingly addressing digital assets through taxation, consumer protection, market integrity and financial regulation.

Why does it matter?

Crypto taxation remains one of the main barriers to wider digital asset use, especially for stablecoin payments, staking, lending and routine transactions. The PARITY Act would aim to make tax treatment more predictable while applying anti-abuse rules to digital assets that are more closely aligned with traditional financial markets. Its impact would depend on whether Congress can integrate tax reform with wider debates on stablecoins, market structure and investor protection.

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Spotify verification badges target AI slop and voice impersonation

Spotify has introduced new verification badges for podcast shows and reinforced its impersonation policies as AI tools make it easier to clone voices, imitate creators and produce misleading audio content.

The new Verified by Spotify badge will appear on selected podcast show pages and in search results. According to Spotify, the badge identifies a show as the official presence of a creator, publisher or brand, helping listeners understand who they are hearing and giving creators a clearer way to establish authenticity on the platform.

Also, Spotify said the badge will begin appearing on select shows and expand over the coming months. Eligibility will depend on factors including sustained listener activity, good standing under Spotify’s platform policies and verified audience authenticity, including safeguards against fraudulent or bot-driven listenership.

Spotify is introducing podcast verification badges and stronger impersonation rules as AI slop expands into audio, voice cloning and creator identity. — Image via Magnific

The company also reaffirmed that its policies prohibit unauthorised impersonation, including through AI voice cloning. Spotify said it will remove podcast shows and content that impersonate another creator or host’s likeness without permission, whether through AI-generated voices or other methods.

However, the move shows how concerns over AI slop are expanding from low-quality visual and written content into audio and identity. In podcasting, the issue is not only whether synthetic content is poor quality, but whether listeners can tell when a voice, host or show is authentic.

Spotify framed the update as part of a broader effort to protect creators and give listeners clearer signals about who they are hearing. The company said podcasting depends on trust between creators and audiences, and that authenticity is becoming more complex as AI lowers the barrier to producing and distributing audio content.

Why does it matter?

AI slop is moving beyond visual clutter and into identity. In podcasting, synthetic voices and impersonation can directly affect the creator’s reputation, listener trust and the credibility of audio platforms. Spotify’s verification badges and impersonation rules show how platforms are beginning to respond not only with content moderation, but with identity signals, authenticity checks and stronger creator protections.

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Myanmar proposes Anti-Online Fraud Bill targeting digital currency scams

Myanmar’s military-backed authorities have proposed a new Anti-Online Fraud Bill to tackle digital currency scams and online fraud networks operating in the country.

The draft legislation would introduce severe penalties for offences linked to online fraud and ‘digital currency fraud’. Reports citing the text say those convicted could face prison sentences ranging from 10 years to life imprisonment.

The bill also proposes the death penalty in the most serious cases involving online scam centres, particularly where people are unlawfully detained, violently coerced or forced into scam operations. AFP, cited by Malay Mail, reported that the proposed penalty would apply to those who detain or violently coerce victims into working in online scam centres.

The proposal reflects growing pressure on Myanmar over large scam compounds where trafficked people have reportedly been forced into online fraud schemes, including romance and cryptocurrency scams. International scrutiny has intensified as cyber-fraud networks across Southeast Asia continue to target victims globally.

Myanmar’s authorities have presented online fraud and online gambling as national security concerns. State media has previously reported crackdowns, deportations and plans for a national anti-scam centre, while also describing telecom fraud and online gambling as threats requiring stronger enforcement.

The bill comes amid wider regional action against transnational scam networks. China has pursued criminal cases linked to Myanmar-based fraud syndicates, while international organisations and law enforcement agencies have warned that online scam compounds combine cybercrime, financial fraud and human trafficking.

Why does it matter?

The proposed bill shows how governments are escalating responses to transnational online fraud networks, particularly where crypto scams overlap with human trafficking and forced labour in scam compounds. Myanmar’s approach would mark a shift towards extreme punitive measures, raising both enforcement and human rights concerns, while highlighting how digital fraud has become a cross-border security issue involving organised crime, financial losses and exploitation of vulnerable people.

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UK proposes stronger streaming rules under new Ofcom standards

Ofcom has proposed new content and accessibility standards for major streaming platforms operating in the UK, expanding regulatory oversight across the rapidly growing on-demand media sector. The draft framework follows powers introduced through the Media Act and would align streaming services more closely with traditional broadcast television standards.

The proposed rules would apply to major platforms including Netflix, Amazon and Disney. Ofcom said audiences increasingly expect consistent protections regardless of whether content is viewed through conventional television or streaming services.

The draft Code includes requirements covering harmful or offensive material, fairness and privacy protections, and due impartiality and accuracy for news content. Additional safeguards for minors would also apply, alongside stronger expectations around contextual warnings and viewer information.

Ofcom also proposed new accessibility obligations for streaming providers. Under the draft rules, platforms would need to subtitle 80% of catalogue content, provide audio description for 10%, and provide signing for 5%. The regulator said that more than 18 million people with hearing or sight conditions could benefit from improved accessibility standards across streaming platforms.

Why does it matter?

The proposals signal a major shift in how digital media platforms are regulated in the UK, extending broadcast-style obligations into streaming ecosystems for the first time. The measures could influence global debates around platform accountability, online safety, accessibility standards, and regulatory convergence between traditional media and digital services.

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Italy lawsuit against Meta and TikTok tests child safety rules

A first hearing has taken place at the Milan Business Court in a case brought by MOIGE, the Italian Parents’ Movement, and a group of families against Meta and TikTok over the protection of minors on social media platforms.

According to MOIGE, the class-wide injunction seeks to protect around 3.5 million Italian children aged between 7 and 14 who are allegedly active on social platforms despite age restrictions. The organisation described the case as the first such action in Europe focused on protecting minors in the digital sector.

The hearing focused on preliminary objections, including challenges by lawyers for Meta and TikTok to the jurisdiction and competence of Italian courts to rule on the companies’ conduct. MOIGE said the platforms also contested documents submitted by its legal team concerning the alleged effects of recommendation algorithms on minors.

According to MOIGE, the documents refer to concerns around variable reinforcement mechanisms, infinite scrolling and behavioural profiling allegedly designed to maximise engagement among younger users. The organisation and the families’ lawyers argue that such design features raise concerns over addictive behaviour and wider risks to children’s well-being.

MOIGE’s lawyers urged the court to proceed quickly, arguing that delays could prolong potential harm affecting minors in Italy. The case will continue with further hearings, with the court expected to set the next steps in the proceedings.

Why does it matter?

The case could become an important test of how courts assess platform responsibility for children’s safety, age restrictions and recommendation systems. If the action advances, it may contribute to wider European debates on algorithmic design, age verification, addictive platform features and whether child online safety should be treated not only as a content moderation issue, but also as a consumer protection and public health concern.

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ICO warns organisations about growing AI cyber threats

The UK Information Commissioner’s Office has warned that AI is enabling faster, more advanced and harder-to-detect cyberattacks, urging organisations to strengthen their defences against emerging threats.

In a blog post, the regulator highlighted risks such as AI-generated phishing emails, deepfake social engineering, automated vulnerability scanning, AI-powered malware, credential attacks, data poisoning and indirect prompt injection. The ICO said cybersecurity must be treated as a shared responsibility, with organisations expected to take proactive steps to protect the personal data they hold.

The ICO said strong foundational security measures remain essential, but should be reinforced with layered defences to counter AI-powered threats. It pointed to practical steps such as patching systems, restricting access through multi-factor authentication, applying least-privilege principles and managing supplier risks.

The recommendations also include monitoring systems for unusual activity, carrying out vulnerability scanning and penetration testing, and maintaining regularly tested incident response plans. The ICO said AI can also support cyber defence, but should operate within a clear framework of human oversight and accountability.

Organisations are further advised to minimise data collection, conduct regular data audits and train staff to recognise AI-powered social engineering attacks. The ICO said AI tools processing high-risk personal data should be supported by data protection impact assessments and appropriate safeguards.

Why does it matter?

The ICO’s warning links AI-powered cyber threats directly to data protection obligations. As attackers use AI to scale phishing, exploit vulnerabilities and impersonate trusted contacts, organisations are expected not only to improve technical security, but also to limit the personal data they hold, strengthen governance and prepare for faster-moving incidents.

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