FIAD calls for the Know Your Business Customer principle in the DSA to be expanded to intermediaries

FIAD has joined forces with 80 organisations in signing letters sent to the European Parliament and European Council in saying that “Know your business customer” (KYBC) obligations offer a real and tangible solution to reduce illegal content and products with minimal burdens on intermediaries and legitimate businesses.

In a responsible and mature economy, businesses should not be able to operate and have access to the modern necessary infrastructure Europe has to offer without accurately identifying themselves. This applies equally to the offline and to the online world, which is why in 2000 legislation introduced an obligation on businesses to identify themselves on their websites (see Article 5 of the e-Commerce Directive (ECD)).

Unfortunately (and unsurprisingly) businesses that have the intention of making a profit out of illegal content do not comply with this obligation and do not suffer consequences.

With regard to KYBC obligations, we welcome the inclusion of a provision ensuring the traceability of traders in Article 22. We acknowledge that this represents a step forward. However, the Commission’s proposed Article 22 only introduces KYBC obligations in the context of online marketplaces. Such a limited approach is a missed opportunity to address the broad range of illegal content and counterfeit, unsafe, non-compliant and substandard products online.

Hence we urge the co-legislators to ensure that all intermediaries – not just online marketplaces – are included in the scope of the KYBC obligations.

Find the letter to the European Parliament here.

Find the letter to the European Council here.