Due Diligence
Due diligence refers to the careful checks and processes that political advertising sponsors, providers, and publishers must follow to ensure transparency and compliance with the law. Under the TTPA Regulation, it includes verifying sponsor information, ensuring proper labeling, keeping accurate records, and providing channels for reporting possible violations.
Legal Basis
While the TTPA Regulation does not define "due diligence" as a standalone term, it establishes due diligence obligations throughout Chapter II:
"Publishers of political advertising shall ensure that political advertising is labelled as political advertising in a clear, easily accessible and unambiguous manner, and that transparency information is made available."
— Article 7(1), Regulation (EU) 2024/900
"Sponsors of political advertising shall provide the publisher with the information necessary to comply with the obligations laid down in this Chapter."
— Article 8(1), Regulation (EU) 2024/900
Why It Matters
Due diligence obligations affect everyone involved in political advertising: sponsors who pay for ads, agencies and platforms that place or publish them, and the public who should be able to identify and report problematic advertising.
These requirements protect democratic processes by making political advertising transparent. When sponsors verify their identity, publishers label ads clearly, and both maintain proper records, voters can understand who is trying to influence them and why. This helps combat disinformation and foreign interference in elections.
Failure to meet due diligence obligations can result in enforcement action by national authorities, including fines and other penalties. Platforms and publishers must also provide easily accessible reporting channels so individuals can flag missing labels or incorrect transparency information, creating a shared responsibility for maintaining standards.
Key Points
- Verification duties: Sponsors must provide accurate information about who paid for the ad; publishers must verify and display this information clearly
- Labeling requirements: All political advertising must be clearly marked as such, both online and offline
- Record-keeping: Providers and publishers must maintain detailed records of political advertising for supervision and enforcement
- Reporting channels: Publishers must offer free, accessible ways for users to report possible violations of transparency rules
- Cross-border compliance: Due diligence applies to all political advertising directed at EU voters, regardless of where sponsors or publishers are based
- Ongoing obligation: Due diligence is not a one-time check but a continuous process throughout the preparation, placement, and publication of political advertising
Due Diligence vs. Legal Obligation
Due diligence describes the proactive steps and careful processes actors must take to meet their legal obligations, while a legal obligation is the specific requirement imposed by law.
Think of legal obligations as "what you must do" (label ads, provide transparency information, keep records) and due diligence as "how carefully and thoroughly you do it" (verification processes, internal checks, monitoring systems).
Under the TTPA Regulation, due diligence is the mechanism for fulfilling legal obligations. For example, the legal obligation is to label political advertising; the due diligence process includes implementing systems to detect political ads, training staff to apply labels correctly, and regularly auditing compliance.
| Aspect | Due Diligence | Legal Obligation |
|---|---|---|
| Nature | Process and standard of care | Specific requirement |
| Focus | How to comply | What to comply with |
| Scope | Ongoing, systematic approach | Defined outcome or rule |
| Example | Verification procedures, record systems | Label ads, publish transparency info |