The European Commission has initiated a multifaceted approach to address concerns surrounding online marketplaces, particularly those originating from China, focusing on consumer protection and environmental standards. This initiative stems from anxieties regarding product quality, misleading commercial practices, and the environmental impact of these platforms, especially considering the increasing volume of low-value goods imported directly to European consumers. The Commission’s strategy comprises a “toolbox” of existing and proposed regulations, coupled with targeted investigations into specific companies, such as the fast-fashion retailer Shein.
The regulatory toolbox aims to strengthen existing consumer protection mechanisms and introduce new measures to ensure compliance with EU standards. One key element is the proposed Customs Union Reform Package, aiming to eliminate the duty exemption for low-value parcels under €150 and establish an EU Customs Authority to streamline and enhance customs controls across member states. This aims to level the playing field between EU-based businesses and international competitors while potentially generating revenue and improving the traceability of imported goods. Additionally, the Commission advocates for “product safety sweeps” utilizing AI and mystery shopping to identify and remove non-compliant products from the market, leveraging the recently introduced General Product Safety Regulations.
Environmental considerations are central to the Commission’s strategy, focusing on mitigating the climate impact of imported low-value products. The toolbox promotes the adoption of the Ecodesign for Sustainable Products Regulation and amendments to the Waste Framework Directive to address the environmental footprint of these goods. This aligns with the broader EU commitment to circular economy principles and reducing waste. Furthermore, the Commission stresses the importance of enforcing existing digital regulations, such as the Digital Services Act and the Digital Markets Act, to combat manipulative online practices like addictive designs, dark patterns, and fake discounts, ensuring a fairer and more transparent online shopping environment for consumers.
The investigation into Shein, conducted in collaboration with the Consumer Protection Cooperation (CPC) Network, exemplifies the Commission’s targeted approach. This probe centers on suspected infringements of EU consumer protection laws, including potential unfair commercial practices and misleading information. The CPC Network, comprising consumer protection authorities from all EU member states, enables a coordinated investigation, pooling resources and expertise to address cross-border consumer protection issues. This approach reflects a shift towards more proactive enforcement, moving beyond reactive measures to investigate and address potential violations before they significantly impact consumers.
The Shein investigation follows a similar probe launched into another Chinese retailer, Temu, last November, demonstrating the Commission’s ongoing commitment to scrutinizing these platforms. These investigations signal a determination to hold online marketplaces accountable for their practices, ensuring adherence to EU standards and protecting consumers from potentially harmful or deceptive practices. While Shein has expressed willingness to cooperate with the investigation, the outcome remains to be seen. The Commission plans to assess the impact of its measures within a year and publish a report on enforcement efforts by both EU and member state authorities.
The broader context of these initiatives involves the anticipated Digital Fairness Act, planned for mid-next year. This legislation aims to address gaps in current consumer protection rules, further strengthening the EU’s regulatory framework for online commerce. The Commission’s comprehensive strategy reflects a growing recognition of the challenges posed by the rapid expansion of online marketplaces, particularly those operating from outside the EU. By combining strengthened regulations, proactive investigations, and enhanced cooperation among member states, the Commission aims to create a safer, fairer, and more sustainable online shopping environment for European consumers while also fostering a level playing field for businesses operating within the EU.
