Anti-Fraud: EC and Online Game
​2024/6/26

The Anti-Fraud Bill introduces comprehensive compliance obligations for digital economy sectors, specifically targeting "e-commerce operators" and "online gaming operators," alongside online advertising platforms and third-party payment providers. Focusing on preventive measures and data retention, the bill aims to safeguard these industries from being exploited for fraudulent activities.

 

 Scope of "E-commerce" and "Online Gaming"

Under the Anti-Fraud Bill, e-commerce operators include not only those engaged in direct online retail but also those managing platforms that facilitate retail for others. Online gaming operators encompass both those running online games and issuers of online gaming points.

 

 Compliance Requirements for E-commerce and Online Gaming Operators

- Duty of Care:

  To prevent the misuse of e-commerce and online gaming services as tools for fraud, operators must implement appropriate measures to ensure their services are not exploited. They should also educate users on fraud prevention. Additionally, operators can leverage joint defense systems to notify other industry players to take corresponding measures, thereby protecting users from encountering fraudulent information.

 

- Suspension of Services:

  Upon notification by government agencies that their services are implicated in fraudulent activities, e-commerce and online gaming operators must comply with the agencies' procedures and suspend services to the accounts involved in fraud.

 

- Data Retention Obligations:

  Online advertising platform operators must, within the scope of technical feasibility, retain electronic records, user identities, connection records, transaction records, and other relevant data for a specified period. If a relevant authority requests this data for fraud investigation purposes, the operators must provide it within three days and retain the data for several months or even years.

 

- Good Samaritan Clause:

  When implementing anti-fraud measures as stipulated in the Anti-Fraud Bill, online advertising platform operators are no longer bound by confidentiality obligations. They are also not liable for damages caused to users or third parties when cooperating with relevant authorities in law enforcement.

 

 Consequences

If e-commerce and online gaming operators fail to suspend services for accounts suspected of fraud or do not cooperate with relevant authorities in providing requested data, they will face corresponding penalties, with fines ranging from NT$100,000 to NT$5,000,000. Moreover, even if operators are not in violation, supervisory or judicial police authorities can, when necessary to prevent the public from accessing fraudulent websites, independently stop the resolution or restrict access to websites of online advertising platform operators without requiring court permission.

 

Source: 

https://www.ey.gov.tw/Page/9277F759E41CCD91/cdedac72-e512-4f92-8a44-492847bed989

 

Editor: Doris Lin, Harvey Huang