Online marketplaces under fire: Incomplete product details raised as a concern
In a bid to ensure consumer protection and transparency within the EU digital single market, the Digital Services Act (DSA) has imposed specific due diligence obligations on online marketplaces. These obligations are aimed at providing clear and reliable product information, as well as traceable seller identification and contact details.
The DSA, which affects online platforms, requires online marketplaces to actively verify and disclose seller identification and contact information. Marketplaces must collect certain information from the sellers using their platform, details that enable the identification and contact of the trader offering products or services. Furthermore, marketplaces must ensure that sellers provide consumers with clear, accurate information about the products or services offered, including essential product details and seller contact information.
The purpose of these obligations is to create a safer online environment by enhancing transparency and accountability. This allows consumers to verify who they are buying from and access relevant product details, thereby combating the sale of unsafe or illegal products.
Recent evaluations by the Federation of German Consumer Organizations (VZBV) have revealed that customers on large online marketplaces like Amazon, eBay, or Temu often do not find all necessary and legally required product information. Key shortcomings among these shopping portals include missing seller's phone numbers or email addresses, unclear manufacturer identification, unclear warning instructions, and sometimes a lack of self-commitment to comply with EU law. Safety and warning instructions were sometimes incomplete on these online marketplaces, and contact details of responsible sellers or manufacturers were often missing.
In response to these findings, several companies have pledged to improve their practices. Media Markt, for instance, has announced plans to check seller information more thoroughly in the future for improved consumer protection. Zalando has welcomed efforts to increase transparency for consumers in the digital space and will review their own processes.
The evaluation covered ten online marketplaces in Germany: AliExpress, Amazon, eBay, Kaufland, Media Markt, Otto, Shein, Temu, Wish, and Zalando. None of the 30 pages evaluated contained all mandatory information. Several companies did not respond to the request from the German Press Agency.
As the DSA's due diligence obligations come into effect from February 2024, it is hoped that the online marketplaces will take these requirements seriously and work towards ensuring a safer and more transparent digital shopping experience for consumers across Europe.
Online marketplaces, such as Amazon, eBay, or Temu, as identified by the Federation of German Consumer Organizations (VZBV), are required under the Digital Services Act (DSA) to actively verify and disclose seller identification and contact information to enhance consumer protection and transparency within the EU digital single market. These obligations also necessitate providers to ensure the availability of clear, accurate product information to combat the sale of unsafe or illegal products. As the DSA's due diligence obligations impact technology-driven platforms, it is crucial for online marketplaces to partner with technology solutions that facilitate the collection, verification, and disclosure of mandatory product information to ensure compliance and a safer digital shopping experience for consumers across Europe.
