Numerique
Legal Obligations of Digital Platforms
A digital platform is an entity that uses technology to facilitate exchanges of goods, services or social content between various groups. This encompasses a range of structures, from small marketplaces to e-commerce giants such as Amazon and Airbnb. If you have any
Reading time:
2 min
What Is a Digital Platform?
A digital platform is an entity that uses technology to facilitate exchanges of goods, services or social content between various groups. This encompasses a range of structures, from small marketplaces to e-commerce giants such as Amazon and Airbnb. If you have any questions about your obligations, you can contact me in my capacity as a digital law attorney.
Information Obligations of Digital Platforms
In France, all digital platforms are subject to general information obligations (Article L. 111-1 et seq. of the Consumer Code) as well as more specific ones (Article L. 111-7 of the Consumer Code). Indeed, they are required to provide clear and transparent information about their terms of use, their ranking practices and the contractual relationships that may affect such ranking.
Intermediation Platforms and Their Specific Obligations
Intermediation platforms, which facilitate the connection between service providers and consumers, have additional obligations. They must provide detailed information about the quality of the providers, the description of the service, its price, the payment terms, the insurance and guarantees offered, and the dispute resolution procedures (Article D. 111-8 of the Consumer Code).
Large Digital Platforms and Their Obligations
A large digital platform, with more than five million unique visitors per month, has additional obligations to strengthen clarity, transparency and fairness towards its users (Articles L. 111-7-1 and D. 111-15 of the Consumer Code). As of 1 October 2023, they are also required to carry out a cybersecurity audit and to present the results to users in an understandable manner.
Penalties for Failure to Comply with Information Obligations
Failure to comply with information obligations can result in heavy penalties. For a natural person, the fine can reach up to €75,000 and for a legal person, it can reach up to €375,000.
New Provisions of 9 June 2023
Since 9 June, digital platforms have new obligations regarding commercial influence. To find out more, I invite you to read the article: "Law No. 2023-451 of 9 June 2023 - New Obligations of Digital Platforms Concerning Influencers" Operating a digital platform entails numerous legal obligations. It is essential to consult a legal professional to ensure that your platform complies with all regulations. This not only helps avoid disputes, but also strengthens users' trust in your platform. Do not take unnecessary risks. Make sure that your digital platform complies with all applicable laws and offer your users a safe and reliable experience. Do not hesitate to contact us if you have any further questions or if you need assistance in ensuring your platform's compliance.
To learn more
What is a digital platform in legal terms?
It is an entity that uses technology to facilitate exchanges of goods, services or content between different groups. This ranges from small marketplaces to e-commerce giants. This classification entails specific information obligations arising from the Consumer Code.
What information obligations apply to platforms?
All platforms are subject to general obligations (Articles L. 111-1 et seq. of the Consumer Code) and specific ones (Article L. 111-7). They must provide clear and transparent information about their terms of use, their ranking practices and the contractual relationships affecting such ranking.
Do intermediation platforms have enhanced obligations?
Yes. They must provide detailed information about the quality of the providers, the description and price of the service, the payment terms, the insurance and guarantees, and the dispute resolution procedures (Article D. 111-8 of the Consumer Code).
What is a large platform?
It is a platform exceeding five million unique visitors per month. It is subject to additional obligations to strengthen clarity, transparency and fairness towards its users (Articles L. 111-7-1 and D. 111-15 of the Consumer Code).
What must the information on ranking contain?
The platform must transparently explain the criteria for ranking, classifying and delisting offers, and disclose the existence of any contractual relationship or remuneration influencing that ranking. This transparency is required in order to protect users.
What are the risks for a non-compliant platform?
Failure to comply with the information obligations of the Consumer Code exposes the platform to administrative penalties from the DGCCRF, which actively monitors the sector, as well as to disputes. The compliance of information is therefore a matter of legal security for the platform.
Does a marketplace owe any particular information?
Yes. As an intermediation platform, a marketplace must provide information about the quality of the sellers, the characteristics and prices of the offers, the guarantees and the resolution of disputes. These obligations are in addition to the usual legal notices and contractual documents.
How can a platform be legally secured?
By auditing its obligations according to its size and activity, by drafting terms of use and transparent information on ranking, and by bringing its user journeys into compliance. Legal support makes it possible to identify the applicable obligations and to avoid penalties.
Still have questions?
Our team is available!
Have a question?
Ressources
Aller plus loin
Digital and Distribution Law Attorney, Paris Bar. We secure your contracts, data, and business.
Services
Sectors