Digital Services Act (DSA): New Obligations for Online Sellers

What is the Digital Services Act?

The Digital Services Act (DSA) represents the most significant overhaul of EU rules governing online platforms since the e-Commerce Directive of 2000. Fully applicable since February 2024, the DSA establishes a comprehensive framework addressing illegal content, platform transparency, and user protection across the European Union.

For online sellers, the DSA introduces both direct obligations and significant indirect impacts through new requirements placed on the platforms where they sell. Understanding these changes is essential for continued access to EU consumers through online marketplaces.

Key Takeaways

• DSA applies to all online platforms serving EU users, regardless of where they are established
• Marketplaces must verify trader identity before allowing sales ("Know Your Business Customer")
• Sellers must provide accurate identity and product information to platforms
• Platforms face strict deadlines for removing illegal content
• Non-compliance can result in fines up to 6% of global annual turnover
• Transparency requirements affect how products can be presented and advertised

Who Does the DSA Apply To?

The DSA creates a tiered system of obligations based on the type and size of digital service:

All Intermediary Services

Basic due diligence obligations apply to all intermediary services, including hosting providers and platforms.

Hosting Services

Additional obligations around notice and action mechanisms for illegal content.

Online Platforms

Platforms that disseminate content to the public (including marketplaces) face enhanced transparency, advertising, and content moderation requirements.

Very Large Online Platforms (VLOPs)

Platforms with over 45 million monthly EU users face the strictest obligations, including systemic risk assessments and independent audits. Amazon, eBay, and AliExpress have been designated as VLOPs.

Trader Verification Requirements

One of the most impactful DSA provisions for sellers is the mandatory trader verification requirement for online marketplaces.

Know Your Business Customer (KYBC)

Before allowing traders to sell products, marketplaces must collect and verify:

Trader Identity Information:

• Name, address, telephone number, email
• Copy of identification document
• Bank account details (for payment processing)
• Trade register registration number (where applicable)
• VAT identification number (where applicable)
• Self-certification that products comply with EU law

Verification Obligations

Marketplaces must make "best efforts" to verify the information provided:

• Check information against official databases where available
• Verify consistency of provided information
• Request clarification where information appears incomplete or incorrect

Consequences of Inadequate Information

If traders fail to provide required information or verification fails:

• Platforms must suspend trader access until information is complete
• Products cannot be listed until verification succeeds
• Repeated failures may result in permanent suspension

Information Display

Marketplaces must display trader identity information to consumers before purchase:

• Trader name
• Address and contact details
• Trade register information
• VAT number where applicable

This information must be easily accessible from product listings.

Product Information Requirements

Beyond trader verification, the DSA enhances requirements around product information on marketplaces.

Compliance Self-Certification

Traders must certify to platforms that their products comply with applicable EU law. This self-certification creates accountability for compliance claims.

Traceability of Products

The DSA works alongside GPSR to ensure product traceability:

• Product identification information must be provided
• Supply chain information enabling traceability
• Economic operator contact information

Illegal Product Response

When platforms become aware of illegal products:

• They must act expeditiously to remove or disable access
• Notice must be provided to the affected trader
• Appeal mechanisms must be available

Platform Transparency Obligations

The DSA imposes extensive transparency requirements affecting how marketplaces operate.

Advertising Transparency

All online advertising must be clearly identifiable as advertising and must display:

• The identity of the advertiser
• Who paid for the advertisement (if different)
• Key parameters used for targeting

For online marketplaces, this affects product promotion and sponsored listings.

Recommender Systems

Platforms must explain in their terms of service:

• Main parameters used in recommender systems
• Options for users to modify or influence recommendations

This impacts how products are ranked and displayed to consumers.

Terms of Service

Platform terms must be clear, comprehensive, and consistently enforced:

• Restrictions on content and products must be explicit
• Enforcement must be proportionate and non-discriminatory
• Significant changes require advance notice

Content Moderation and Illegal Content

The DSA establishes frameworks for addressing illegal content, including illegal products.

Notice and Action Mechanisms

Platforms must implement accessible mechanisms for reporting illegal content:

• Easy-to-use reporting interfaces
• Electronic submission capability
• Confirmation of receipt

Processing Timeframes

While the DSA does not set specific deadlines for all content, platforms must act "expeditiously" when aware of illegal content. For very large platforms, coordinated enforcement may impose tighter timelines.

Trusted Flaggers

The DSA creates a "trusted flagger" system:

• Designated entities with expertise in identifying illegal content
• Platform prioritization of trusted flagger notices
• Consumer protection authorities may achieve trusted flagger status

Repeat Infringers

Platforms must take measures against users who frequently provide illegal content:

• Suspension of service following warnings
• Clear policies on repeat infringement consequences

Enforcement and Penalties

DSA enforcement occurs at both national and EU levels.

Digital Services Coordinators

Each member state designates a Digital Services Coordinator (DSC) responsible for:

• Supervising platforms established in their territory
• Handling cross-border cooperation
• Managing complaints about platform compliance

European Board for Digital Services

A new EU-level body coordinates DSA enforcement:

• Ensuring consistent application across member states
• Advising the Commission on VLOP supervision
• Developing guidelines and standards

Penalties

Non-compliance with DSA obligations can result in:

• Fines up to 6% of global annual turnover
• Periodic penalty payments for ongoing violations
• Additional remedies including operational restrictions

For VLOPs, the European Commission has direct enforcement authority.

Impact on Sellers

Enhanced Due Diligence

Expect platforms to request more information before and during your selling relationship:

• Identity verification documents
• Product compliance evidence
• Regular confirmation of information accuracy

Listing Restrictions

Platforms may implement stricter product approval processes:

• Pre-listing compliance checks
• Automated content moderation catching potential violations
• Faster removal of flagged products

Increased Transparency

Your identity information will be more visible to consumers:

• Business name and address on all listings
• Contact information readily accessible
• VAT and registration numbers displayed

Compliance Accountability

Self-certification requirements create clear accountability:

• False certifications may result in platform suspension
• Record-keeping becomes more important
• Audit trail of compliance evidence essential

Seller Compliance Checklist

To prepare for DSA requirements:

1. **Verify business documentation** - Ensure company registration, VAT registration, and identity documents are current
2. **Update platform profiles** - Provide complete and accurate trader information to all platforms
3. **Review product compliance** - Verify all products meet applicable EU requirements before self-certification
4. **Document compliance evidence** - Maintain organized records of test reports, certificates, and declarations
5. **Monitor communications** - Respond promptly to platform requests for information
6. **Train staff** - Ensure team members understand DSA requirements and platform obligations
7. **Review advertising practices** - Ensure all promotional content meets transparency requirements
8. **Establish response procedures** - Prepare processes for responding to illegal content notices

How DSA Interacts with Other Regulations

The DSA does not replace product-specific regulations—it adds a layer of platform governance:

GPSR Alignment

DSA trader verification and traceability requirements complement GPSR's responsible person and traceability obligations. Together, they create comprehensive accountability for products sold online.

Product Safety Coordination

DSA requires platforms to cooperate with market surveillance authorities:

• Respond to authority requests for information
• Participate in product safety investigations
• Implement recall notifications effectively

Consumer Rights

DSA works alongside existing consumer protection rules:

• Right of withdrawal unaffected
• Consumer guarantees remain in place
• Additional transparency enhances informed purchasing

How SellSafe Supports DSA Compliance

The DSA increases the importance of organized compliance documentation. SellSafe helps you maintain the evidence needed to support platform self-certifications, tracks your compliance status across product categories, and ensures you can respond quickly to platform or authority requests.

Our platform generates the documentation that platforms increasingly require, reducing the friction of seller verification processes.

Preparing for the DSA Era

The Digital Services Act fundamentally changes the relationship between sellers, platforms, and regulators. Platforms face significant liability for how they manage seller access and product listings. This liability translates into stricter requirements for sellers.

The sellers who thrive in this environment will be those with robust compliance documentation, accurate business information, and responsive communication practices. The investment in compliance infrastructure pays dividends through continued platform access and reduced enforcement risk.

Start by auditing your current platform profiles and compliance documentation. Identify gaps before platforms flag them. Build the systems to maintain compliance evidence over time. The DSA is not a one-time compliance exercise—it establishes ongoing obligations that require sustained attention.