Social media activity and usage
Estimated population active on social media in 2023* *Source
Platforms ranked by usage 2023*
1. Facebook
2. YouTube
3. Instagram
4. LinkedIn
5. TikTok
Current laws and regulations relevant to social media
All EU laws mentioned in the EU section
The Dutch Media Act (the “Media Act”)
As of July 1, 2022, influencers on social media will be obliged to comply with the Media Act. The Media Act implements the European Audiovisual Media Services Directive, which came into force on November 1, 2018. Whereas influencers were previously not covered by the scope of the previous Media Act, they are now. Under this Act, influencers are now considered an on-demand commercial media service. For influencers to additionally fall under the supervision of the Dutch Media Authority, the following criteria all need to be met:
- The influencer must be active on YouTube, Instagram and/or TikTok;
- The influencer must have 500,000 or more followers/subscribers on at least one of these platforms;
- The influencer must have posted at least 24 videos with their account with 500,000 or more followers in the past 12 months;
- The influencer earns money, receives products or services or gains others benefits of making and posting videos from their account with 500,000 or more followers;
- The benefit the influencer enjoys of making and posting videos from their account with 500,000 or more followers benefits a company registered with the Dutch Chamber of Commerce.
If these criteria are met, the influencer falls under the supervision of the Media Authority and must report to the media service to the Media Authority (register with the authority, the Dutch self-regulatory body for advertising (Stichting Reclame Code) and report to the Netherlands Institute for the Classification of Audiovisual Media (NICAM)). The Media Act contains rules on recognizable advertising, product placement, sponsorship and protection of minors from harmful content. The Media Authority has recently announced that it will soon revisit the above mentioned criteria.
Dutch Consumer Law -The Unfair Commercial Practices Directive is implemented in the Dutch Civil Code
Advertising that is not recognizable as such constitutes a misleading and therefore unfair commercial practice when it limits the average consumer’s ability to make an informed decision about a product or service. This also applies to all advertising on social media. The Dutch Civil Code contains a list of commercial practices that are considered misleading and therefore prohibited under all circumstances. An example of such misleading and prohibited practice is using editorial content on social media to advertise a certain product or service without mentioning it concerns advertisement.
Dutch Advertising Code and the Advertising Code for Social Media and Influencer Marketing (the “Code”)
The Code applies to all companies in the Netherlands that use social media to promote their product and/or services. The Code was drawn up by the Advertising Code Foundation (SRC). The SRC promotes responsible advertising to ensure the reliability and credibility of advertising. The SRC deals with the self-regulation system of advertising. Both the advertising industry and consumers are represented in the board of SRC and in the Advertising Code Committee and the Board of Appeal. Anyone may submit a complaint to the Advertising Code Committee. This independent body then decides whether an advertisement is in conflict with the Dutch Advertising Code. In case of a violation of the Code, the Committee will recommend the advertiser(s)/company(ies)/influencer(s) involved to discontinue such a way of advertising. The Compliance department will thereupon check whether the advertiser has put the recommendation into effect. The Advertising Code Committee cannot impose fines but publish its rulings (so via naming and shaming) encouraging advertisers to advertise in conformity with the Code.
Misleading and/or fake news
There are parties operating on the internet dealing in fake reviews, fake likes and fake followers. These misleading reviews are used to influence consumers on social media and other online services such as online shops and marketplaces. The Consumer & Market Authority (ACM) considers it very important that consumers receive good information on the basis of which they decide whether to buy a product or service. That is why the ACM takes action against parties offering and using misleading reviews online. In the “Guideline for Online Consumer Protection,” adopted by the ACM earlier this year, the ACM describes where seduction turns into deception. Previously, the ACM has investigated reviews and drafted rules that reviews must comply with. The ACM is also looking at the role and responsibility of platforms in combating misleading reviews.
Sustainability
Sustainability claims are high on the ACM’s agenda, and the ACM actively monitors sustainability claims made by companies, both offline and online. To this end, the ACM published a guide in 2021 that contains rules of thumb and examples to help companies formulate sustainability claims. This guide was updated by the ACM in June 2023. As companies often spread information regarding sustainability via their social media channels, they should carefully verify their claims. The ACM may charge high fines, which could amount to EUR900,000 per offense or could amount up to a percentage of their annual turnover. Currently, a major case is pending against the largest national airline, KLM, regarding its Fly Responsibly sustainability campaign.
Dutch Code for Children’s Rights (“Code voor Kinderrechten”)
The Code for Children’s Right (the “CfCR”) consists of ten principles with practical examples which designers and developers can use to safeguard the fundamental rights of children in digital services. The CfCR helps designers and developers to take account of children’s rights when designing and developing apps, websites, games, smart devices and other digital technology. Although the 10 principles in the CfCR are in themselves not legally enforceable rules, the principles are based on laws and regulations which are legally binding. The principles derive from the fundamental rights of children in the UN Convention on the Rights of the Child 1989 (UNCRC) and the EU’s GDPR. The CfCR is endorsed by the Netherlands Authority for Consumers and Markets. The leading principle throughout the CfCR is to put the child’s best interest first. Designers and developers should, among others, make the best interests of the child the primary consideration when designing, ensure the legitimate processing of the personal data of children and provide transparency in a way that is easily understandable and accessible to children.
Dutch Constitution
Freedom of expression is a crucial constitutional right in the Netherlands, enshrined in Article 7 of the Dutch Constitution. This provision emphasizes the significance of free expression as a fundamental human right, granting individuals the liberty to freely express their thoughts and opinions through various channels, including the press, radio, television and other forms of communication. The Dutch Government is prohibited from engaging in censorship or requiring prior approval of content, ensuring the free flow of ideas and information without unnecessary interference. Nevertheless, it’s important to acknowledge that, as in other democratic societies, this right is not absolute. Certain limitations are imposed by law to safeguard public interests, such as public order, health and morals. These limitations strike a balance between individual liberties and the collective welfare of society. When addressing challenges related to social media, Dutch legislators consider the right to freedom of expression while ensuring that potential risks and harms are appropriately addressed.
Data protection laws applicable to social media
EU data protection laws apply in the Netherlands.
Dutch Data Protection Authority (DDPA)
The DDPA is the SA for data protection law in the Netherlands. In terms of the DDPA’s work there are five key themes that they are looking at which will have particular relevance for social media:
- Dark patterns Social media platforms can make use of so-called dark patterns. These are interfaces and user experiences that cause users to make unintended and potentially harmful decisions regarding the processing of their personal data. With regard to dark patterns, the principles of fair processing, transparency, data minimization and accountability come into play in particular. Consent and data-protection-by-design and by-default requirements also play an important role. The latter can help providers avoid dark patterns already present at the design stage.
- Targeting Besides using dark patterns, platforms can offer targeting services as part of their business model. The criteria for targeting individuals can be developed based on personal data that users have (actively) provided or shared with social media platforms. In addition, personal data may be observed or derived and collected by the provider or by third parties to gain further insights and support the targeting services. The combination of data collected from different sources and the potentially sensitive nature of the personal data processed may pose risks to the fundamental rights and freedoms of individuals. The legal basis on which the provider/targeter may rely may be consent of the data subject or legitimate interests. The provider/targeter must meet certain specific conditions to show that it can rely on them as a legitimate legal basis for targeting.
- Algorithms and AI The DDPA published their annual plans for 2024 at the end of last year. As algorithms and AI have become an integral part of our society, this becomes an important focus area. Social media platforms may use algorithms and AI to increase personalization whilst delivering content to its users. Example applications include: - advertisement management; - facial recognition software; - content generation and moderation; and - analyzing and tagging data. Whilst algorithms and AI offer opportunities, the use of irresponsible development or use of algorithms can also pose significant risks to the rights and freedoms of individuals. Incorrect data or data based on faulty assumptions pose risks to users such as exclusion or discrimination. The DDPA will prioritize complaints, data breaches and investigations that concern algorithms and AI and focus on prevention of such risks by offering tools for safe and responsible use of algorithms and AI.
- Market Dominance As the influence of social media platforms continues the grow, the DDPA will focus on social media platform’s market dominant positions. In the opinion of the DDPA, social media platforms process a lot of personal data which make that the platforms can easily influence people, for example through fake news and political targeting based on profiles. To ensure that large social media companies comply with the GDPR, the DDPA will coordinate enforcement actions with other European regulators.
- Data Trading In connection with dark patterns and targeting, social media platforms process valuable data with an increased risk of unlawful sales of personal data in the Netherlands, but also internationally. To prevent such unlawful sales, the DDPA are launching a multi-year project that will address unauthorized online tracking of people, for example with cookies, giving priority to investigating complaints and data breach reports that have a clear link to data trading.
Legislative developments on the horizon
EU Developments will be equally applicable in the Netherlands.
Contributors
Olaf van Haperen
European TMT Sector Head and Partner, Technology & Data Protection, Rotterdam
E: olafvanhaperen@eversheds-sutherland.com T: +31 617 456 299
Nathalie Djojokasiran
Associate, Rotterdam
E: nathaliedjojokasiran@eversheds-sutherland.com T: +31 10 2488 024
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