What regulatory obligations should be ensured for a clothing subscription service launching in the EU?

The correct choice highlights the comprehensive regulatory obligations that a clothing subscription service must adhere to when launching in the EU.

KYC, which stands for Know Your Customer, is crucial for understanding the identity of your customers and mitigating risks related to money laundering and fraudulent activities. This is particularly important in the subscription model, where recurring payments are involved.

PCI, or Payment Card Industry Data Security Standards, is essential for any business that handles credit card transactions. Compliance with PCI ensures that customer payment information is handled securely, protecting against data breaches and financial fraud, which is vital for maintaining trust with customers.

SCA, or Strong Customer Authentication, is a requirement under the EU’s Revised Payment Services Directive (PSD2). This regulation enhances security for online payments and mandates that businesses apply additional verification steps during the payment process, further securing transactions and adhering to consumer protection standards.

GDPR, the General Data Protection Regulation, is fundamental for any organization processing personal data of EU residents. It sets strict guidelines on how personal information is collected, stored, and used, emphasizing privacy and data protection.

In summary, a clothing subscription service in the EU must ensure compliance with KYC to validate customer identities, PCI standards for secure payment processing, SCA for enhanced payment security, and GDPR