The government is considering asking TikTok and other large digital advertising platforms to have agents based in Taiwan in accordance with the draft act on the prevention and control of fraud and crime, which is scheduled to be reviewed at an Executive Yuan meeting today, the Ministry of Digital Affairs said yesterday.
The draft act is one of the legislative measures being introduced by the government to tackle scams, including the draft technology investigation and security act, and amendments to the Money Laundering Control Act (洗錢防制法) and the Communication Security and Surveillance Act (通訊保障及監察法).
They are also to be reviewed at today’s Cabinet meeting.
Photo: Hsu Tzu-ling, Taipei Times
As large advertising platforms are often based overseas and the government frequently has trouble conveying regulations to them, the draft act on the prevention and control of fraud and crime would require large advertising platforms to have agents based in Taiwan, Minister of Digital Affairs Audrey Tang (唐鳳) told a news conference in Taipei.
The agents would be responsible for informing large platforms about the regulations in Taiwan, and could be accountants or lawyers, ministry officials said.
The draft act would list objective standards to determine whether a platform is a large advertising platform and subject to regulation, Tang said.
“A platform would not be regulated by the draft act if it serves merely as instant messaging software and does not run advertisements,” she said. “TikTok and other advertising platforms that can be widely accessed by the public would all be subject to regulation by the draft act.”
“For platforms that do not comply with the draft act, the government could first regulate online traffic to the platforms. Access to the platforms could be restricted following expert reviews if they commit serious offenses,” she said.
Aside from advertising platforms, the draft act also regulates e-commerce operators, third-party payment processors and online gaming companies, which are also obligated to counter fraud, Tang said.
To address problems caused by fake accounts on online platforms, the draft act would require platform operators to verify the authenticity of accounts and advertisers via a digital signature, Fast Identity Online authentication or other cybersecurity technologies, she said.
The content should be labeled if it is generated using artificial intelligence or has been faked, Tang said.
Those who use the technology to impersonate other people should have their access to the platforms suspended, she said.
The heaviest fine for a non-compliant platform would be NT$25 million (US$770,701), Tang added.
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