Transparency Obligations Under the DSA: What Platforms Must Tell Users and Sellers

Welcome to the era of transparency, courtesy of the European Union. The Digital Services Act (DSA) isn’t just a set of regulatory do’s and don’ts — it’s a blueprint for reshaping how platforms communicate with users and sellers. Gone are the days of shadowy algorithms, vague policies, and “because we said so” enforcement. The DSA demands clarity, accountability, and openness.

If your platform is operating in the EU or serving EU users, this isn’t optional. The DSA is already here, and its transparency rules are some of the most transformative.

Let’s break them down in a way that’s equal parts practical, legal, and just entertaining enough to keep you awake — because dry compliance should never mean dry coffee.

Why Transparency Matters

In a digital world where platforms serve as storefronts, referees, and security guards all at once, transparency builds trust. For too long, users haven’t known why their post was deleted or why that overpriced teapot appeared first in search results. Sellers have been in the dark about algorithm changes and what gets them delisted.

The DSA flips the script. Its transparency provisions are about creating explainable platforms — where users understand what’s happening, and sellers know how to play by the rules.

Who Has to Comply?

Short answer: almost everyone.

If you’re an intermediary service — think social networks, online marketplaces, app stores, hosting providers, or search engines — and you serve users in the EU, the DSA applies to you.

Platforms are grouped by size:

• Basic rules apply to all platforms.
• Very Large Online Platforms (VLOPs) — 45+ million monthly EU users — face enhanced obligations.

So whether you’re running a mega-marketplace or a niche app store, you should care. Your legal department certainly does.

What Must Platforms Disclose to USERS?

1. Content Moderation Policies

Platforms must publish clear, concise, and accessible information about:

• What content is allowed or prohibited
• How moderation is performed (human, AI, or both)
• What happens when content is flagged

📌 Think less “legalese labyrinth” and more “community rules you can actually understand.”

2. Explanation of Algorithmic Systems

If a platform uses algorithms to:

• Prioritize content,
• Recommend posts,
• Personalize feeds,

…it must explain in plain language how and why it does so.

Users also have the right to:

• Opt out of personalized recommendations
• Access settings that impact visibility

Tip: If your algorithm is too complicated to explain, that’s a red flag — not a feature.

3. Notification of Takedown or Suspension

When content is removed or an account is restricted, platforms must:

• Notify the user
• Explain the reason
• Provide an opportunity to appeal

📌 “We removed your post. No further info. Goodbye.” is no longer an acceptable email.

4. Transparency Reports

Platforms must publish annual transparency reports detailing:

• Number of takedown actions
• Source of reports (users, trusted flaggers, law enforcement)
• Appeal statistics and outcomes

Bonus: These reports are public, meaning regulators, journalists, and users can all peek inside.

What Must Platforms Disclose to SELLERS?

1. Ranking Criteria

Sellers must be informed about:

• У "The main factors influencing product visibility
• Whether ads, commissions, or ratings affect rankings

No more black-box algorithms that mysteriously bury certain listings. If you pay to play — say so.

2. Suspension and Termination Rules

Platforms must:

• Outline clear conditions under which sellers may be suspended or banned
• Provide sellers with notice, justification, and appeal mechanisms

This helps prevent abusive or inconsistent enforcement.

3. Data Access Policies

Sellers are entitled to know:

• What data they can access (e.g., performance metrics)
• How customer data is handled and shared

If you’re using a seller’s sales data to promote your own private label brand — that’s now a transparency issue.

Obligations for Very Large Online Platforms (VLOPs)

For the internet’s biggest players, the DSA ups the ante.

VLOPs must:

• Conduct systemic risk assessments (e.g., disinformation, harm to minors)
• Allow audits by independent third parties
• Provide recommender system explanations in greater detail
• Establish a compliance officer
• Offer a public ad repository detailing all ads shown

Translation: Being big is no longer just about bragging rights — it’s a compliance marathon.

Penalties for Non-Compliance

Here’s the part that gets CFOs twitchy:

• Fines of up to 6% of global turnover
• Reputational harm from public scrutiny
• Orders to suspend operations in extreme cases

Tip: “We didn’t know” is not a valid legal defense when you’ve had three years to prepare.

Best Practices for Compliance (and Sanity)

• Translate Legal into Plain English

Your users shouldn’t need a law degree to understand your policies. Use FAQs, visuals, and example scenarios.

• Create a Transparency Hub

Bundle all your DSA-required info — policies, reports, explanations — into a central, searchable section of your site.

• Build Internal Protocols

Moderation, takedowns, user notices — all should be governed by standard operating procedures.

• Log Everything

Documentation is your friend. If regulators come knocking, you’ll want receipts.

• Train Your Team

From content moderators to product designers — everyone should know the DSA basics.

Final Thoughts: Transparency Is a Competitive Advantage

The DSA may feel like a regulatory headache, but it’s also an opportunity.

Platforms that are clear, fair, and accountable can differentiate themselves in a trust-starved digital landscape. Consumers prefer platforms they understand. Sellers stay longer on platforms that treat them as partners, not replaceable widgets.

Transparency isn’t just about avoiding fines — it’s about earning loyalty.

So yes, get your documentation in order. But don’t stop there. Build a platform where your users say, “I get how this works.” And your sellers say, “I know what’s expected.”

That’s not just DSA compliance. That’s digital leadership.