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REPORT (COM(2021)0731 – C90433/2021 – 2021/0381(COD))

On the proposal for a regulation of the European Parliament and of the Council on the transparency and targeting of political advertising

A-9-2023-0009

Committee on the Internal Market and Consumer Protection · Rapporteur: Sandro Gozi

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Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

Parliament's amended version of the Commission proposal for a regulation on the transparency and targeting of political advertising lays down harmonised transparency and due diligence rules for sponsors and providers of political advertising services. It requires political advertisements to carry labels and a transparency notice, and sets record-keeping, reporting and notification rules. It bans targeting and ad delivery using special categories of personal data and strictly limits other targeting to personal data explicitly provided by the data subject. In the 60 days before an election or referendum, targeting is restricted to the languages spoken, the location at constituency level and first-voter status. It requires a European repository for online political advertisements, rules for third-country providers' legal representatives, and supervision and sanctions by member states.

Committee position. The committee proposes to amend the Commission proposal by adding due diligence obligations, clarifying definitions, strengthening transparency and notification rules, banning targeting based on special categories of personal data and strictly limiting other targeting, and enhancing supervision and sanctions.

Key points

  1. The regulation lays down harmonised rules on the provision of political advertising services and on transparency and due diligence for sponsors and providers, and on targeting and ad delivery involving personal data.
  2. It applies to political advertising sponsored, prepared, placed, promoted, published, delivered or disseminated in the Union or directed to individuals in one or more member states, regardless of the provider's establishment.
  3. Member states must not maintain or introduce transparency-related provisions diverging from the regulation, and providers must not discriminate against sponsors based on residence or establishment.
  4. Providers must ask sponsors to declare whether a service is political advertising, and sponsors and providers acting on their behalf must provide accurate information and correct manifest errors.
  5. Providers must retain information on services, amounts and sponsors for ten years and transmit it to the political advertising publisher in a timely and accurate manner.
  6. Political advertising publishers must ensure each advertisement contains a clear statement that it is political, the sponsor's identity and a retrievable transparency notice.
  7. The Commission must establish a public European repository for online political advertisements, with VLOPs and VLOSEs making information available in real time and others within 24 hours.
  8. Publishers must include spending information in a separate note to their management report, with exemptions for micro, small and medium-sized enterprises.
  9. Publishers must put in place free, user-friendly mechanisms for individuals to notify non-compliant advertisements, and process notifications within 48 hours in the month before an election or referendum.
  10. Targeting and ad delivery using special categories of personal data are prohibited, and other targeting is limited to personal data explicitly provided by the data subject with consent.
  11. In the 60 days before an election or referendum, targeting is restricted to the languages spoken, location at constituency level and first-voter status.
  12. Third-country providers must designate a legal representative in the Union, and member states must designate competent authorities, with fines for infringements.

Who is affected

  • Providers of political advertising services, who must comply with transparency, due diligence and record-keeping rules.
  • Sponsors of political advertising, who must declare political advertising and provide accurate information.
  • Political advertising publishers, who must label advertisements and provide transparency notices.
  • Online platforms and search engines, especially VLOPs and VLOSEs, which face additional repository and risk assessment obligations.
  • Third-country providers, who must designate a legal representative in the Union.

Figures and deadlines

  • Information must be retained for ten years from the last preparation, placement, promotion, publication, delivery or dissemination.
  • In the 60 days before an election or referendum, targeting is restricted to languages spoken, location at constituency level and first-voter status.
  • Non-VLOP publishers must make transparency notice information available in the European repository no later than 24 hours.
  • In the month before an election or referendum, publishers must process notifications no later than 48 hours.
  • Providers must provide requested information to competent authorities within eight working days.
  • In the month before an election or referendum, providers must provide requested information no later than 48 hours.
  • The European Data Protection Board may order a suspension of targeting and ad delivery services for a period not exceeding 15 days.
  • The regulation applies from three months after entry into force, with Article 7b paragraphs 1, 4 and 5 applying from one year after entry into force.

Legal basis: Article 294(2) and Articles 16 and 114 of the Treaty on the Functioning of the European Union.