Facebook is set to rely on the Credit Reference Bureau (CRB) to build profiles for users trading or advertising using the platform.
The company announced the move which will be part of their updated terms set to take effect on January 2023, to curb mounting defaults.
The parent company, meta, which also owns Instagram and WhatsApp, plans to protect its bottom line from non-performing users, with the government demanding online traders to pay the required digital service tax.
According to the requirements, the service tax is equivalent to 1.5 percent of the gross value earned on the online business.
The CRB checks will help Meta to monitor an advertiser’s creditworthiness ahead of labelling them as invoiced or non-invoiced.
Facebook collects money from advertisers at the end of every thirty days, reports showing a sizable number of traders using the platform for promotions have failed to make the payments as required.
Part of the updated terms further require users trading online to make upfront payments for Facebook and Instagram advertisements.
Meta last week also announced that part of the updated terms will allow the tech giant to share information with tax and investigative authorities from January.
Entrepreneurs using the platform to advertise or sell their products will automatically offer their consent for sharing of dealings of the businesspersons to a governmental entity or body if it believes that disclosure would assist in a lawful investigation.
“You will pay all expenses associated with such collection, including reasonable legal fees. Past due amounts will accrue interest at 1.0 percent per month or the lawful maximum, whichever is less,” the company said.
“Meta may classify clients as invoiced clients based on factors such as ad spend and creditworthiness. You understand that, from time to time, we run tests on our Self-Serve Ad Interfaces and related systems, which may affect your use and experience thereof, including campaign performance,”
Also Read: Meta to Share Trade data with KRA Beginning January