5% of annual income as a penalty? Submission of Political Advertising Transparency Act

The European Commission has introduced legislation on the transparency and targeting of political advertisements, such as labeling that lets you know it’s a political advertisement and who is paying how much and who has shipped it. Google has also said it will support the bill.

The bill defines political advertising as advertising by politicians on behalf of politicians for politicians, or advertising that may influence elections, referendum results, legislative and regulatory processes, and voting behavior. Paid political advertisements are also required to be clearly labeled, requiring transparency that simply investigates the amount spent on political advertisements, the source of the funds used, and the relevance of the advertisements to elections or referendums.

In addition, political targeting or advertisement amplification using sensitive personal information such as ethnicity, religious creed, sexual orientation, etc. is basically prohibited and allowed only with the explicit consent of the person concerned. In violation of this, it is necessary to impose a deterrent fine corresponding to the size of the violating company. The European Commission doesn’t give specific amounts, but reports say it could be fined up to 5% of annual global profits. Related information can be found here.