Consumer protection

EU urged to cover platform monetisation in Digital Fairness Act

A coalition of civil society organisations, academics, and advocates has published an open letter urging the European Commission to ensure that forthcoming Digital Fairness Act rules on influencer marketing extend beyond third-party advertising payments to include income generated through platform monetisation services.

The signatories welcome the Commission’s proposal to require influencers to disclose payments received for their content but argue that it leaves a significant transparency gap. They note that social media platforms increasingly provide creators with monetisation tools such as subscriptions, donations, affiliate marketing, branded partnerships and platform-funded bonus programmes, many of which would fall outside rules focused solely on third-party advertising payments.

The letter proposes minimum transparency measures including labels identifying content that benefits from platform monetisation, account-level labels showing participation in monetisation programmes, public monetisation libraries to support independent oversight, and disclosures explaining platforms’ monetisation policies, moderation practices and enforcement.

The coalition, whose members include AlgorithmWatch, Bits of Freedom, Corporate Europe Observatory, and the Digital Rights Foundation, together with academic experts including an associate professor from Finland’s Hanken School of Economics, has invited the Commission to discuss ways of incorporating these proposals into the Digital Fairness Act before it is finalised.

Why does it matter?

The debate reflects a broader shift in how online influence is financed. Increasingly, creators earn income not only from advertisers but also through platform-designed monetisation systems that reward engagement, subscriptions and other forms of user activity. Without transparency around these incentives, audiences may struggle to distinguish between organic content and content shaped by commercial rewards built into platform design.

The Digital Fairness Act, therefore, presents an opportunity to broaden consumer protection beyond traditional advertising disclosure. Extending transparency requirements to platform monetisation could improve accountability for creators and platforms alike while giving regulators, researchers and users greater visibility into the financial incentives shaping online content.

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OpenAI rolls out GPT-5.5 Instant Mini in ChatGPT

OpenAI has started rolling out GPT-5.5 Instant Mini in ChatGPT as the fallback model users reach after hitting GPT-5.5 Instant or Auto rate limits.

The model replaces GPT-5.3 Instant Mini in that fallback role.

Because GPT-5.5 Instant Mini is used only as a fallback model, it will not appear in the model picker.

OpenAI said the update does not affect the API or Codex.

According to the company’s release notes, GPT-5.5 Instant Mini performs better than GPT-5.3 Instant Mini at tracking evolving user intent, calibrating tone and avoiding repetitive or overly structured responses.

OpenAI also said testing showed stronger personalisation and fewer factual issues than the previous fallback model.

Why does it matter?

Fallback models shape the experience users receive when they hit rate limits, especially on high-demand ChatGPT plans. Improving that fallback path can make the transition less disruptive by preserving tone, context and reliability more effectively. The update also shows OpenAI refining its everyday model-routing infrastructure, not just the flagship models available in the picker.

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UK FCA review warns agentic AI could reshape retail finance

A new FCA-commissioned review has warned that agentic AI could reshape retail financial services by allowing consumers to delegate more financial decisions to autonomous tools.

The Mills Review examines how AI could transform retail finance by 2030 and beyond, including banking, payments, savings, investments, insurance and debt advice.

The review says AI is moving financial services from human-led and episodic activity towards services that are AI-enabled, continuous and delegated.

Over time, AI agents could help consumers manage finances, compare products, execute tasks and optimise financial choices within agreed limits.

The report says the shift could help address long-standing market problems, including advice gaps, low switching, financial exclusion and poor savings outcomes.

It also warns that greater autonomy will create new risks around consent, accountability, redress, market power, cyber threats and financial crime.

The review recommends that the FCA consider developing trusted frameworks for AI agent participation in financial services, including clearer expectations for identity, consent, control and liability.

It also calls for stronger AI-enabled supervision so the FCA can detect risks across firms, shared models, cloud platforms and data sources more quickly.

The report says human accountability must remain central, with firms remaining responsible for outcomes produced by AI systems.

Why does it matter?

The review points to a shift from AI as a financial services support tool to AI as an active participant in consumer finance. If agents begin comparing products, moving money, managing portfolios or taking out insurance within delegated limits, regulators will need clearer rules on consent, liability, identity, redress and oversight. The report also raises a broader infrastructure question: agentic finance will depend not only on AI models, but also on trusted data access, digital identity, payments systems and supervisory tools that can detect risks across the market.

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UK launches toy safety review as AI-enabled toys emerge

The UK government has launched a Call for Evidence on toy safety, including whether existing rules remain suitable as AI-enabled toys and online shopping create new risks for children.

The review is led by the Department for Business and Trade and the Office for Product Safety and Standards. It aims to assess whether the UK’s toy safety framework is fit for modern products and purchasing habits.

The government said the Call for Evidence will examine issues including chemical safety and toys that use AI features.

Consumer Protection Minister Kate Dearden said toy safety rules must keep pace with changes in how people shop and the types of toys children use.

The Call for Evidence is open until 6 October 2026 and invites views from parents, consumer groups, businesses, enforcement authorities and the wider public.

The review forms part of a wider UK programme to reform product safety rules, including measures aimed at unsafe goods sold through online marketplaces.

It does not introduce new toy safety rules immediately, but it will help the government decide how to update the framework.

Why does it matter?

AI-enabled toys raise product safety questions that go beyond traditional concerns such as chemicals, small parts or physical defects. Connected and interactive toys may involve software, data use, voice interaction, recommendation systems or adaptive behaviour, creating new risks for children and new responsibilities for manufacturers, retailers and online marketplaces. The UK review shows how AI is entering mainstream consumer product safety policy, not only digital regulation.

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UAE Central Bank approves dirham stablecoin for retail use

The UAE Central Bank has issued a No Objection Certificate allowing the dirham-backed stablecoin DDSC to go live on selected exchange platforms regulated by Dubai’s Virtual Assets Regulatory Authority.

DDSC was developed through a collaboration between International Holding Company, First Abu Dhabi Bank and Sirius International Holding. The stablecoin is pegged 1:1 to the UAE dirham and operates on ADI Chain, an institutional Layer-2 blockchain.

The latest clearance follows earlier Central Bank approval for the launch of DDSC, announced in February 2026. The new no-objection certificate allows the stablecoin to partner with selected VARA-regulated exchange platforms.

The regulatory structure reflects the UAE’s dual-layer approach to digital assets. The Central Bank oversees payment tokens and monetary stability requirements, while VARA licenses and supervises virtual asset platforms in Dubai.

DDSC is designed to support digital payments, including peer-to-peer transfers, merchant payments and supplier settlements in dirhams.

The project has already been tested in institutional transactions, including a reported AED 110 million transfer on ADI Chain.

The approval marks another step in the UAE’s effort to build a regulated dirham-denominated digital payment infrastructure.

Why does it matter?

The DDSC approval demonstrates that the UAE is establishing a regulatory framework for stablecoins tied to its national currency. Central Bank clearance combined with VARA-regulated exchange access could make dirham-backed tokens more usable in payments, settlement and digital asset markets. The case also highlights a broader regulatory model in which monetary authorities oversee the approval of payment tokens, while specialised virtual asset regulators supervise exchange platforms.

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EU examines harmful design features in online platforms

The second annual report on systemic risks under the Digital Services Act has highlighted online risks faced by children and young people on very large online platforms and search engines.

The report was published by the Board for Digital Services and developed in cooperation with the European Commission. It provides an overview of recurrent systemic risks in the EU for very large online platforms and search engines.

Risks identified in the report include the spread of illegal content, cyberbullying, grooming and exposure to harmful material such as dangerous viral challenges and adult content.

The report also points to the role of platform design. Interface features and recommender systems can contribute to addiction-like behaviour, increase exposure to harmful content and intensify harmful interactions between users.

Platforms have introduced mitigation measures, including targeted protection tools, content moderation systems and user empowerment features.

The Commission said the report reinforces the role of the DSA as a transparency and accountability tool for understanding how online platforms function and shape risks in society.

The findings will support regulators, civil society, and platforms as the EU continues to monitor DSA implementation and efforts to create a safer online environment for minors.

Why does it matter?

The report shows that the EU platform regulation is moving beyond illegal-content takedown towards a broader assessment of systemic risks created by platform design. For children and young people, recommender systems, interface choices and engagement-driven features can shape exposure to harmful content and unsafe interactions at scale. The DSA reporting process, therefore, provides regulators and civil society with a clearer evidence base for assessing whether very large platforms are doing enough to protect minors.

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FTC seeks comment on AI accuracy policy for model outputs

The US Federal Trade Commission (FTC) is seeking public comment on a proposed policy statement examining whether AI companies may violate consumer protection law by manipulating model outputs in ways that conflict with users’ expectations of objectivity and accuracy.

The proposed statement says AI companies could violate Section 5 of the FTC Act if they deliberately distort AI outputs to pursue undisclosed ideological objectives while marketing their systems as accurate, objective or suitable for specific purposes. Section 5 prohibits unfair or deceptive business practices.

The FTC also questions whether certain state AI laws, specifically Colorado’s Artificial Intelligence Act, could be preempted if they conflict with a federal regulatory framework. According to the Commission, state requirements that compel changes to AI outputs may be incompatible with federal policy.

The proposal follows a December executive order issued by President Donald Trump directing the FTC to examine the legal implications of state laws requiring changes to what the order described as the ‘truthful outputs of AI models.’

The proposed policy statement will be published in the Federal Register, with public comments accepted until 31 July 2026. The Commission approved the notice in a 2–0 vote.

Why does it matter?

The proposal reframes AI output accuracy as a consumer protection issue rather than solely a question of content moderation or AI governance. If adopted, it could expose companies to regulatory scrutiny when they market AI systems as objective or reliable while modifying outputs in ways users are not informed about.

The consultation also highlights growing tension between federal and state approaches to AI regulation in the United States. By questioning whether state laws could be overridden by a federal framework, the FTC is signalling that AI governance may increasingly become the subject of broader legal and constitutional debates over regulatory authority.

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EU introduces €3 duty on low-value e-commerce imports

From 1 July 2026, the European Commission is introducing a temporary €3 customs duty on low-value goods imported into the EU from outside the bloc, primarily through e-commerce platforms. The duty applies to a wide range of commonly purchased goods including clothing, toys, and electronics, covering items worth up to €150.

The duty is charged per customs tariff classification rather than by quantity. For example, purchasing five T-shirts attracts a single €3 charge because they share the same tariff code, whereas buying three T-shirts and a watch incurs two €3 charges because they fall under different classifications. Sellers or importers will declare and pay the duty through the customs process.

The measure is intended to create fairer competition for the EU businesses, improve consumer protection by strengthening oversight of imported goods, reduce customs fraud linked to undervaluation and false declarations, and address the environmental impact of growing volumes of low-value shipments.

The European Commission said the measure forms part of a broader customs reform package aimed at modernising border procedures, strengthening the single market and ensuring that businesses selling into the EU comply with the bloc’s safety and regulatory standards. The duty is described as a temporary measure.

Why does it matter?

The new customs duty reflects the EU’s broader effort to adapt its customs system to the rapid growth of cross-border e-commerce. By introducing a flat charge on low-value imports, the Commission aims to reduce incentives for undervaluation, improve enforcement of product safety rules and create more equal competitive conditions for businesses operating within the single market.

The measure could also influence the business models of major online retailers and marketplaces that rely on high volumes of low-cost imports. Whether the duty succeeds in improving compliance without significantly increasing costs for consumers or slowing legitimate trade will help shape future reforms of the EU’s customs framework.

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Russian draft law includes 48-hour crypto cooling-off rule

Russian lawmakers are considering a 48-hour cooling-off period for certain cryptocurrency transfers as part of a draft law on digital currencies and digital rights.

The measure would apply to non-qualified investors and is intended to protect users from fraud, according to comments from Vladimir Chistyukhin, First Deputy Governor of the Bank of Russia.

Chistyukhin said the cooling-off period would not apply to cryptocurrency trading itself. He clarified that the mechanism is intended for transfers to other accounts and similar operations, rather than brokerage activity.

The proposal forms part of a broader legislative effort to establish a legal framework for the circulation of cryptocurrencies in Russia. The State Duma adopted the government-backed draft law in its first reading in April.

Russian officials have framed the cooling-off mechanism as a targeted investor-protection tool rather than a broader restriction on market activity.

The proposal reflects a regulatory approach focused on reducing fraud risks while allowing parts of the crypto market to operate under a more formal legal framework.

Why does it matter?

The proposal shows how crypto regulation is moving beyond general warnings and enforcement actions towards safeguards built into transaction flows. A cooling-off period can slow down transfers linked to fraud, giving users and intermediaries more time to detect suspicious activity. The narrow scope is also important: by excluding trading and brokerage activities, Russian regulators aim to reduce consumer harm without directly limiting market liquidity or day-to-day trading.

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Vietnam’s new e-commerce law takes effect

Vietnam’s Law on E-commerce came into effect on 1 July 2026, modernising the country’s digital economy framework after more than a decade of rapid growth in online commerce. The law addresses gaps that previous regulations failed to close, particularly around intermediary platforms, cross-border e-commerce, counterfeit goods, commercial fraud, and consumer rights infringements.

Under the new law, e-commerce platforms must verify sellers’ identities, disclose information about sellers, products and transaction terms, proactively identify violations, and establish effective complaint-handling mechanisms. They are also required to retain transaction data, provide it to authorities on request, and strengthen product information requirements, particularly for sensitive goods.

The legislation also promotes greener e-commerce through more efficient logistics and environmentally friendly packaging, while creating new opportunities for SMEs, household businesses and startups. Consumer protections have been strengthened through clearer rules on complaints, refunds, compensation and personal data, with experts expecting consistent enforcement to improve market confidence over time.

Major e-commerce platforms operating in Vietnam have already begun adapting, including by expanding the use of near-field communication (NFC) technology for seller verification and AI to detect counterfeit and intellectual property-infringing products. Although compliance costs may initially increase, the reforms are expected to reward businesses that invest in higher standards and strengthen the long-term development of Vietnam’s digital marketplace.

Why does it matter?

Vietnam’s new law reflects a broader shift towards platform accountability in digital commerce. By requiring marketplaces to verify sellers, retain transaction data and proactively tackle fraud and counterfeit goods, the government is placing greater responsibility on intermediaries to ensure the integrity of online marketplaces.

The legislation also illustrates how digital economy regulation is evolving beyond consumer protection alone. Combining AI-enabled enforcement, stronger data governance and sustainability measures, the framework aims to support long-term growth in e-commerce while increasing trust in Vietnam’s rapidly expanding digital economy.

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