Age Verification Regulations – Risks Industries Face for Non-Compliance

In the ever-evolving world, it is becoming easier for customers to purchase global products and services online. However, minors’ access to these is somewhat alarming. They use their elders’ credentials and documents to onboard Age-Oriented (AO) platforms. This customer’s not physically present situation is raising various concerns like blackmailing, financial loss, and non-compliance.

 

Therefore, industries like tobacco, alcohol, e-commerce, cannabis, and others offering AO services should place not breachable gates in minors’ way. The AI-powered age verification solutions are such checks to identify minors and restrict them from onboarding. These solutions authentically validate documents and detect liveness for further verification. This blog provides an overview of the age verification regulations and risks industries will face in case of non-compliance. 

Age Checks – Global Regulations for Digital Industries

Minors are using advanced techniques to trick the age checks and make illegitimate purchases. They use their elders’ details and credit cards to make payments, similarly, they use their documents to escape the on-site verification process. These strategies help them easily onboard on platforms like dating sites, social media apps, and online purchasing platforms. 

 

Digitization has made global access easier and hard for platforms to identify minors. Therefore, regulatory authorities are imposing more strict regulations on AO industries. Further details regarding these laws are briefed next:

Age Verification Laws in Europe

The guidelines put forth by the European Union (EU) consist of a set of rules regarding customer verification. It mandates that industries must collect customers’ personal information prior to onboarding. Furthermore, Article 8 of the General Data Protection Regulation (GDPR) obliges industries to verify customers alongside their age. 

 

Furthermore, as per the requirements, customers above 18 are eligible to buy or get access to AO products including tobacco, alcohol, and much more. For this, the industries should carry out biometric and genetic scans on customers to better verify their age. 

Age Verification Laws in the UK

In 2017, the government of the UK made some amendments to the customer verification laws to protect and safeguard minors from digital manipulations. Furthermore, UK Council’s Child Internet Safety laws mandate industries to limit easy access of global customers to AO products and services. Similarly, social media and dating sites should also verify age prior to registration. 

Age Verification Laws in Australia

Similar to the rest of other countries, regulatory authorities in Australia are also imposing strict regulations on AO platforms to ensure the security of minors. As per the guidelines by the Australian Communications and Media Authority (AMCA), industries should comply with Know Your Customer’s Customer (KYCC) to ensure that in no way the AO products or services are reaching minors. 

 

Moreover, this authority obliges the TV industry to display a warning of “18+” before airing any content. As per the regulations, industries should also identify the customers presenting proof of age and make sure they are imposters. Therefore, industries require age verification solutions to make sure they are not onboarding minors. 

Age Verification Laws in the USA

Laws in the USA to verify age include the Federal Trade Commission’s COPPA. As per its guidelines, industries should accurately verify customers and their ages to identify minors. Moreover, industries should put strict restrictions on minors under 13 years of age. Similarly, the Cellular Telecommunications and Internet Association issues guidelines regarding the airing of content. 

 

Industries airing AO content should place specific restrictions like filters or block such sites. Moreover, the industries should identify their target audience and restrict minors’ access to inappropriate content. For this, Shufti Pro Funding indicates that they need age verification online to ensure their content is reaching the right consumers. 

Non-Compliance Risks Industries Need to Watch Out For

To get the age verified is not just a precautionary measure but also a regulatory obligation. In case of failure with these standards, industries will fall prey to certain risks like hefty penalties and reputational damages. Countries around the globe are in action to protect minors from exposure to digital manipulations and are enforcing strict regulations. This is why industries need to be sure that they have authentic age verification solutions in place. Otherwise, they will encounter the following risks:

Non-Compliance Penalties 

Industries including tobacco, alcohol, and social media should comply with GDPR to minimize the chances of hefty penalties. As per these regulations, the industries should maintain the security and privacy of their customers along with mitigating data breaches. Therefore, industries providing AO products and services should employ authentic age checks to restrict minors’ access and ensure regulatory compliance. 

Reputational Damages 

Customer satisfaction is another important aspect for industries. As per Shufti Pro News, if they fail to provide a secure experience, they will face customer drop-off. However, with authentic age verification processes in place, they are less likely to experience these consequences. 

In Conclusion

In the end, industries are increasingly experiencing various challenges like minors’ access. As per the regulations, industries should improve their age verification processes and restrict minors from onboarding. Furthermore, protecting minors from digital manipulations and exposure to lethal consequences is the legal responsibility of these industries. Hence, industries should employ authentic age checks to identify minors at the time of registration and restrict them from onboarding the platforms. 

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