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Online Advertising Transparency (DSA)

Online advertising transparency under the Digital Services Act (DSA) refers to the requirement that advertisements on online platforms must clearly identify themselves as ads, disclose who paid for them, and provide information about how and why the ad was shown to a particular user. These rules help people recognize commercial content and understand how advertisers are reaching them online.

Legal Basis

"Providers of online platforms shall ensure that recipients of the service can identify, for each specific advertisement presented to each individual recipient, in a clear, concise and unambiguous manner and in real time: (a) that the information is an advertisement, including through prominent markings, which might follow standards pursuant to Article 44; (b) the natural or legal person on whose behalf the advertisement is presented; (c) the natural or legal person who paid for the advertisement if that person is different from the natural or legal person referred to in point (b); (d) meaningful information about the main parameters used to determine the recipient to whom the advertisement is presented and, where applicable, about how to change those parameters."

— Article 26(1), Regulation (EU) 2022/2065 (Digital Services Act)

Why It Matters

Online advertising transparency matters because it empowers users to make informed decisions about the content they see. When platforms clearly label ads and explain who paid for them, users can better distinguish between editorial content and paid promotions, assess the credibility of information, and understand commercial interests behind messages.

For online platforms, these transparency requirements create clear legal obligations. Platforms must implement systems that automatically display required information alongside every advertisement, including details about the advertiser, the payer (if different), and the targeting parameters used. Failure to comply can result in significant fines—up to 6% of global annual turnover.

The DSA's advertising transparency rules complement other EU regulations, including the Transparency and Targeting of Political Advertising (TTPA) Regulation. While the DSA sets baseline requirements for all online advertising, the TTPA imposes additional, stricter obligations specifically for political advertisements, including detailed transparency notices and restrictions on targeting techniques using personal data.

Key Points

  • Ad identification: Every advertisement must be clearly marked as an ad in real time, using prominent visual indicators
  • Advertiser disclosure: Platforms must identify both the sponsor (on whose behalf the ad appears) and the payer if they are different entities
  • Targeting transparency: Users must receive meaningful information about why they were shown a particular ad and the main parameters used for targeting
  • Ad repository requirement: Very Large Online Platforms (VLOPs) must maintain publicly accessible repositories of all advertisements shown on their services for one year
  • User empowerment: Information must be presented in a clear, concise, and easily understandable manner, enabling users to make informed choices
  • Enforcement: Digital Services Coordinators in each Member State supervise compliance, with the European Commission directly overseeing VLOPs

Online Advertising Transparency (DSA) vs. Political Advertising Transparency (TTPA)

While both regulations require transparency in advertising, they serve different purposes and have different scopes. The DSA applies to all online advertising on platforms and sets baseline transparency requirements: ads must be labeled, advertisers identified, and targeting parameters disclosed. These rules aim to protect consumers and enable informed decision-making in commercial contexts.

The TTPA Regulation applies only to political advertising—content intended to influence voting behavior, election outcomes, or legislative processes. It imposes stricter requirements, including detailed transparency notices with information about spending amounts, publication periods, and reach data. The TTPA also restricts the use of personal data for targeting political ads and requires publishers to maintain accessible reporting channels for violations.

For political advertisements published online, both regulations apply: the ad must meet DSA's baseline transparency requirements and the TTPA's enhanced political advertising obligations. The TTPA complements the DSA by addressing the specific democratic risks posed by political advertising, while the DSA ensures general advertising transparency across all online platforms.

Related Terms

Online advertising transparency (DSA): Core Facts

Status
Active Definition
Verified
2026-03-07

Related

Very transparent. Every political ad will be labelled, linked to a transparency notice with detailed information, and online ads will be searchable in a central European repository.
The Network coordinates election-related cooperation between member states. National contact points for TTPA enforcement should be members of this network where possible.
Election campaigns will need to ensure all paid advertising includes proper labels and transparency notices. Sponsors must be prepared to provide required information to all service providers.
Several major platforms currently do not allow paid political advertising, including some large social networks. This limits where political actors can place paid online advertisements.
The TTPA applies from 10 October 2025. Member States had until 10 April 2025 to designate competent authorities, and the Commission must provide label templates by 10 July 2025.
Publishers must ensure completeness and accuracy of certain information but are not required to verify all sponsor claims. They must correct manifestly erroneous information when they become aware of it.
Yes. When a hosting provider and a website both display an ad, both are considered publishers with responsibility for their specific services. Contracts should clarify how they share compliance duties.
If a publisher removes or disables access to a political ad due to illegality or terms violations, they must still provide access to the transparency information for the full seven-year retention period.