Digital Services Act Question. Traders or Non Traders

Read the next paragraph:

Does your app require or request a monetary exchange? This could be requiring payment for use, requiring a subscription to use or asking the user for tips or donations even if it isn’t required for use. If the answer to all these questions is “No,” then we do not require you to verify as a trader.

7780811 said:

I’m trying to understand if I am a trader or non trader. However, I had a good look at many watch face developers selling through IQ merchant system, and non of them had their address and phone number displayed. This indicates that they are non traders based on my understanding of one of the DSA requirements for traders.

I don't think it's correct to assume that just because a dev's address and phone number are not displayed, they are not a trader.

Here's my understanding of how it works, with regards to devs who have registered as traders (hopefully someone will correct me if I'm wrong):

- individuals (not businesses) will not have their address and phone number displayed, only their contact email and location (city, state/province, and country

- businesses will have complete contact information displayed, including address, phone number, and DUNS number

Example of app from individual trader (I think): https://apps.garmin.com/apps/7c83d402-4b68-4f0a-b167-7139788a19b3 - ANT+ HRM Heart Rate Monitor by flocsy (hope you don't mind). I believe flocsy is a trader bc at least one of his apps asks for donations (but then again, none of his apps has the "payment" label, so maybe I'm wrong about him being a trader.)

EDIT here's an app from ftrimboli that also asks for donations: https://apps.garmin.com/apps/00ff49d3-3306-4c1b-bf65-4b8ae8cab513

It's not flagged with "payment" but ftrimboli's email and location are listed on the app page, so I'm going to assume:

- ftrimboli is also registered as a trader

- you are indeed considered a trader if at least one of your apps asks for any kind of payment (even donations)

- but if an app only asks for donations (as opposed to requiring payment to unlock premium features or take the app from "trial mode" to "full mode"), then it won't be flagged with the "payment" label. (In the store search results, this label appears as "Payment" but on the app page itself, it appears as "Payment Required", so maybe there's something to this)

I'm not sure, but the fact that donation-seeking apps are not flagged with the "payment" / "payment required" label could be a holdover from a time when app devs were not strictly required to required to check the "payment required" box when uploading an app, if the app only asked for donations. I do seem to recall that one point, Garmin started asking devs to select "payment required" on the app details form even if an app only asked for donations.

I'd really like to find an individual (non business) dev which actually has an app flagged with the "payment" label though, to make sure I'm not wrong about all this.

EDIT2: Found an app from the dev TitanicTurtle that costs $3.49 CAD in the store (although it's not flagged with the payment label - looks like that label is only for external monetization, which makes a certain amount of sense since it would be redundant if the app already has a "price tag" in the built-in monetization system). It seems they are also an individual dev and not a business, as only their email address and location are listed:

apps.garmin.com/.../554e517d-9988-40d8-888f-2347ad9d2ada

Example of app from business trader: https://apps.garmin.com/apps/330c059e-b534-4594-9372-064f5d04681f - Stopwatch by r.485. r.485 should definitely be a trader as several of their apps is labelled with "payment" (and the apps ask for payment in order to unlock premium features)

If you view those pages while logged into a Connect account, you will see that the individual trader only has their email and location listed, while the business trader has the complete info listed (including address and phone number).

And here's an example of one of my apps (I am not registered as a trader, nor is my identity verified, as I don't ask for money): https://apps.garmin.com/apps/a054f515-576a-4a28-b8e5-87987ba737e1

You can see that, as a non-verified non-trader, neither my email nor my location is listed. (There's no About The Developer section at all, unlike the other 2 cases, although ofc users can still press Contact Developer and indirectly reach me via email anyway)

TL;DR the information that's exposed in the CIQ store after you register as a trader depends on whether you register as a business or an individual afaik

A "trader" on the Connect IQ Store under the EU Digital Service Act as we have interpreted the law is anyone taking any form of payment for their apps. This could be direct monetization through Garmin, third-party monetization (even if it's just for additional, non-core features), asking for tips, donations, or requiring a subscription. In other words, unless you're offering your app entirely for free, you're considered a trader.

To confuse things even further, we used to have this odd, subjective policy that stated an app does not need to indicate payment is required if the primary features of the app are free to use and payment is only needed for non-primary features (e.g. a watch face that functions normally for free, but you can pay extra to customize the backgrounds). This is no longer the case. If any kind of payment is requested, apps must be marked payment required.

Anyway, traders must complete the DSA registration to avoid their monetized apps from being hidden pending registration. There are two options when registering, which display different amounts of information in the developer info section of the listings:

For companies/organizations:

• Company Name
• Phone #
• Support Email Address
• Full Address
• DUNS #

For individual developers (sole proprietors):

• Support Email Address
• City/State/Country

In these cases you linked below, the developers have completed DSA registration, but are technically in terms violation because they have not updated their app listings to indicate that they are asking for donations:

• https://apps.garmin.com/apps/7c83d402-4b68-4f0a-b167-7139788a19b3
• https://apps.garmin.com/apps/00ff49d3-3306-4c1b-bf65-4b8ae8cab513
• https://apps.garmin.com/apps/554e517d-9988-40d8-888f-2347ad9d2ada

We're being lenient on this because of the confusing amount of policy change occurring right now, but we will ultimately require these developers to indicate that payment is required or remove the request for donations from their descriptions.

As to your app, FlowState, since it's completely free, you don't need to take any action. If you felt like it, you could certainly complete the DSA registration, but there's no requirement for you to do so.

Thanks, great reply.

Brandon.ConnectIQ said:

For individual developers (sole proprietors):

• Support Email Address
• City/State/Country

Great.  That's what I wanted to hear.

That has made things much clearer.

Brandon.ConnectIQ said:

We're being lenient on this because of the confusing amount of policy change occurring right now, but we will ultimately require these developers to indicate that payment is required or remove the request for donations from their descriptions.

What about apps that were last updated long ago and are no longer being maintained by the developer? Perhaps the developer is no longer responsive/reachable?

I hope that this policy enforcement won't result in apps which may be old (but still useful) being removed from the store.

In the case that the developer can't be reached, I hope Garmin could just edit the store description to remove the request for donations, or something. (Yeah, I can see how that might be even more of a problem tho.) Or maybe Garmin could just enable the "payment required" flag themselves? I can also see how that might be a problem.

FlowState said:

And here's an example of one of my apps (I am not registered as a trader, nor is my identity verified, as I don't ask for money): https://apps.garmin.com/apps/a054f515-576a-4a28-b8e5-87987ba737e1

Doesn't it mean that users "in the EU" * can't download the app?

*) I wasn't able to understand what is the criteria for being in a country. Is it based on the user's IP address? So using a VPN would make it work for someone who's in the EU? Or is it the country in https://www.garmin.com/account/profile/ ? Because I change that occasionally and I didn't notice any difference.

flocsy🤠 said:

Doesn't it mean that users "in the EU" * can't download the app?

That’s my understanding, yes. For my apps to be available in EU, I think I would have to get my identity verified (but I wouldn’t have to register as a trader as I have never asked for payment or donations.)

Tbh most of my apps aren’t maintained (except for the simple data field apps, which are easier to port to new devices), so verification hasn’t been a priority for me. I also haven’t released any new apps in a few years. I have had a few ideas rattling around, but haven’t found the time/initiative to pursue them. (As with all things, CIQ development was more “exciting” in the beginning.)

Btw sorry for calling out your app in this thread — I hope it doesn’t cause any “extra attention” from Garmin when it comes to enforcing these rules. (Yeah, it’s a hollow public apology, I know.)

flocsy🤠 said:

I don't think it's fair to put an app that asks for a donation but all functionality can be used for free under a "Payment Required" banner, together with apps that can't be used unless you pay.

Yeah I agree that it sucks to lump apps with (mandatory) 3rd-party monetization together with apps that ask for donations, although Garmin has signalled they would do so quite some time ago. My guess is they just want to cover all the bases wrt to the EU DSA. 

Too bad Garmin isn’t able or willing to create a new label such as “donations optional” for apps which ask for donations but do not tie any sort of functionality to monetary payment.

I imagine that lumping all 3rd-party monetization and donations requests into a single “payment” / “payment required” label is easier from a liability pov. (I am not a lawyer ofc). I do think “payment required” is a pretty misleading description for an app that asks for donations.

FlowState said:

For my apps to be available in EU, I think I would have to get my identity verified (but I wouldn’t have to register as a trader as I have never asked for payment or donations.)

Hmmm. This made me re-think... So it's clear that there are 2 things going on here at the same time: 1. Garmin wants to be ok for the EU laws not to get into trouble, 2. Garmin wants to get a cut by enabling developers to use "Garmin Pay" (they get the $100 + % of every app purchase I guess)

I am verified (that's why you see my location and "This developer guarantees to only offer products or services that comply with the applicable rules of Union law." but I did not enable the merchant account (basically only because of the $100/year price tag. In android I paid a one-time $25 10 years ago and my account is still active (even though my apps were not updated for years, so they are all removed until I'd upload an update that complies with the latest requirements)

So my question to Brandon.ConnectIQ is what should a developer do that asks for donations?

1. doesn't have to apply for merchant account, but has to click the Monetization question: "Your app asks for tips or donations"

2. or does have to apply for merchant account for $100/year

Until now I thought the verification is in order to be able to have apps listed in the EU and the merchant account is to be able to sell apps via the "Garmin Pay"  and the "Do you plan on earning money from your Connect IQ app?" in the monetization section is to indicate that part of my app's functionality is only available if the user pays (via a 3rd party payment system)

Also since I am not a merchant I can't check but does it mean that if someone is a merchant and clicks yes in the monetization section then he'll be forced to use Garmin Pay or can he have one app with third-party payment and another app with Garmin Pay?

flocsy🤠 said:

Also since I am not a merchant I can't check but does it mean that if someone is a merchant and clicks yes in the monetization section then he'll be forced to use Garmin Pay or can he have one app with third-party payment and another app with Garmin Pay?

This is an improtant question.  I believe based on my experience, that the Garmin Merchant Monetization system requires that the IQ buyer has no option but to pay Garmin with Garmin Pay. Yes this will be a showstopper for some, but only because Garmin do not make it clear that Garmin will accept all normal band cards, for payment to Garmin for watch faces. App, etc..

If however, you want to use Garmin Pay to pay for something as a contactless payment, then Garmin have different rules which mean they dont support all of the same banks.  In other words I can buy watch faces or Apps from Garmin using my bank card but I cant setup that same bank card to use with Garmin Pay to buy stuff.

So 2 rules for Garmin Pay depending whether you are buying or paying. 

P.S.  I am in the UK with the largest UK bank.