Google and other large international online platforms could face a fine up to NT$25 million (US$780,445) if they fail to take down fraudulent advertisements within 24 hours of being notified by the government, the Ministry of Digital Affairs said yesterday.
The ministry has stipulated multiple sets of enforcement rules since the Fraud Hazard Prevention Act (詐欺犯罪危害防制條例) was passed by the legislature in July. One set of enforcement rules stipulated by the ministry requires online platforms to address fraudulent advertisements within a designated time period to prevent them from spreading and causing additional harm.
All the enforcement rules proposed by ministry are subject to a 30-day public viewing period, the ministry said, adding that they could take effect by the end of this year.
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Under the proposed enforcement rules, online platforms must take down an advertisement, stop airing it or restrict its exposure within 24 hours of being notified by law enforcement officials or administrative agencies that the advertisement is involved in fraud. The ministry could impose a fine of NT$500,000 to NT$5 million on platform operators who fail to do so, the rules say.
The fine could increase to NT$2.5 million to NT$25 million if the situation is serious, and the operators would be ordered to rectify the situation within a designated time period.
For online platform operators who refuse to remove advertisements, the ministry has the authority to order them to enforce measures that would properly regulate online traffic. If a serious offense is involved, content on the platform would not be parsed and its access to content would also be restricted, the ministry said.
The ministry also proposed another set of enforcement rules requiring online platform operators to disclose information about advertisers and sponsors. They should tell the public whether persons in the advertisements are created using artificial intelligence or deep fake technology. There should also be links on platforms for viewers to verify whether images in advertisements are created using artificial intelligence or deep fake technology.
If advertisers or sponsors are individuals, they are obliged to disclose where they reside and the name on their national identification card and passport, the ministry said.
Advertisers and sponsors who are legal entities or institutions and law firms need to also disclose their names, the ministry said.
The rules also stipulate that platforms who are authorized by advertisers to show advertisements directly to users must disclose such information as well and ensure that the content in the advertisement follows government regulations. They should review the advertisement content at least four times per year and keep the results on file for at least three years in case the ministry requests it, the ministry said.
To verify identities of advertisers and sponsors and ensure the consistency of the platform’s fraud prevention plan and transparency report, platforms are allowed to enforce identity verification of advertisers and sponsors through digital signatures, fast identify online, encrypted mechanisms or asking them to appear in person.
Meanwhile, platform operators must list in fraud prevention plans their policies and mechanisms to regulate advertisements shown on their platforms and fraud risk assessment. They must also publish a report on fraud prevention on their platforms at least once a year, on their number of active users, the number and types of removed advertisements, and the average time taken to handle fraudulent advertisements, the ministry said.
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