Chinese electronic commerce and the rapid Shein fashion giant faces a new control in the European Union with regard to consumer protection rules after the launch of a coordinated action coordinated by the Consumer Cooperation Network of the block (CPCN).
The action is underway in reference to the Directive on EU unfair trade practices, the Directive on Consumer Rights, the Directive of Disloyal Contracts, the Price Indication Directive and the Electronic Commerce Directive – Although it is not clear what are the specific concerns that the network has on the Shein market.
This decision was announced on Wednesday by the European Commission because it simultaneously presented a set of measures and reforms aimed at combating a divergence of risks attached to an increase in low -value electronic commerce activity in recent years.
At a press conference announcing a Communication on electronic commerce EU legislators have warned that a “tsunami” of cheap imports flooded the market for products that do not meet block standards – creating health and safety risks for European consumers.
Dangerous products such as toys with small detachable parts that could present a risk of suffocation, electrical devices with inadequate insulation and chemicals in clothing have been cited as examples of dangers linked to cheap imports.
“The recent evidence and the conclusions of the tests carried out by the national authorities and the consumer organizations leave us no doubt – the evidence here are clear – up to 96% of the products tested and sold on these platforms are not entirely in accordance with Our rules and our security standards, ”said the regulation commissioner of the Michael McGrath law.
THE The EU says Some 4.6 billion “low -value consignments” (which means that goods of value not exceeding € 150) entered the market – equivalent to 12 million packages per day – which is twice as much that in 2023 and 3x 2022.
The ultra low -cost electronic commerce boom also raises environmental and competition problems in the EU.
Legislators have declared that the package of problems involved requires a several -strict approach which aims both to use a full range of existing laws in the relevant fields – such as the EU digital services law and digital markets , its general product safety regulation, and Ecodesign rules – while also putting pressure for legislative reforms and additional rules in other areas, such as linked to personalized tasks.
Safe and sustainable electronic commerce
Commission’s communication defines what is considered to be a “complete EU toolbox for safe and sustainable electronic commerce”, the proposal covering ticket problems such as personalized reforms and targeted measures for imported goods, as well as the call for consumer protection and application competition to be intensified in this area.
(On consumer protection, it should be noted that if the Commission plays a coordination role in the CPCN, the real application of laws in this area is the authorities member of the State – so there is only so much centralized action that the EU itself can do here.
Communication also urges the adoption of the first action plan on the Ecodésign for the regulation of sustainable products, to help respond to the environmental challenges posed by the vague electronic commerce, as well as to put pressure for its co-legislators of the EU to put itself behind a Amendment proposed to the Directive on the Frame of Waste – which focuses on the treatment of textile waste.
On Wednesday, the Commission also followed a plan to present a “law on digital equity” – which, according to McGrath, would aim to “strengthen consumer protection in the digital sphere”.
The EU has already taken certain measures in this area – sending the request for information to Shein and another platform of electronic commerce at low cost TEMU last JuneUnder the Digital Services Act (DSA), after the two platforms have become subject to centralized EU surveillance following their designations as very large online platforms (Valops). (Although, also like Shein, Temu is the target of consumer protection problems: Back in May Consumer groups have filed a series of coordinated complaints against her, accusing her of raping the DSA.)
From March 2024 The Commission also had an investigation open into the DSA on the online market, Aliexpress, another importer of cheap products in the block. And since the start of the operation of the online governance framework, the EU has identified electronic commerce as one of its application priorities – that Henna Virkkunen has reiterated this today.
“We will also prioritize and intensify the supervision of the Commission and the application of the rules applicable to online markets under the law on digital services, including the obligation to assess the risks that their service poses to consumers and Measures they take to alleviate these risks, “said Virkkunen during the press briefing.
Customs reform
During the reform of the EU customs union, the block had a proposal on the table since 2023 – which would eliminate the relief of the rights currently granted to the packages with a content of € 150.
During today’s briefing, Maroš Šefčovič, the Commissioner for Commercial Security and Economic Security, said that the proposal provided for needs related to the rise of electronic commerce and contained “critical measures” requiring Online platforms to assume more responsibilities as a major.
“The current practice of treating citizens as importers for customs purposes is ineffective in ensuring their protection,” he warned, also stressing the need to “strengthen control capacities”.
“In response to the rise of low-value electronic trade imports, it is essential to finalize our customs union reform and perhaps frontal load until 2026,” he added.
The Commission suggests that the Member States are found behind “possible additional measures”, such as non -discriminatory manipulation costs for goods delivered directly to consumers. Other actions that floated in this area includes the launch of a “customs control zone” dedicated to electronic commerce products; And the launch of coordinated actions which aim to identify and quickly eliminate dangerous products such as product safety scans.
Šefčovič conceded that communication represents an “call for action”, urging EU legislators and other stakeholders to “work collectively … to ensure that each citizen benefits from an online confidence market ».
Respond to the commission’s proposal, BeucThe organization of European consumers, pressure for an “urgent and ambitious action”. “”Consumer group tests Show that many products sold online such as toys and textiles are not safe. If the EU seriously wishes to protect consumers and take the road to decarbonization, it must ensure that everyone plays according to the same rules, “said his DG, Agustín Reyna, in a press release.
“Consumer groups fully support the European Commission and the national authorities launching implementing actions, such as that in progress against which we have launched Temp And the one announced today against Shein, “he added.
Shein was contacted to comment on the CPCN action. The spokesman Jakub Hera Adamowicz sent an email to a statement in which the company wrote: “We share the objective of the CPC network to guarantee that European consumers can buy online with peace of mind, and we have The intention to work closely with the CPC network and the Commission to respond to any concern. “”
In wider remarks responding to the proposed toolbox of the Commission for a safe and sustainable electronic trade, Shein wrote that it welcomes “efforts that improve the confidence and safety of European consumers when they do shopping in Line “, and also expressed support for” a competitive level playground “.
“The model on the request of Shein aims to reduce ineffectiveness and reduce waste on unsold materials and stocks, allowing us to offer an exceptional style and quality at affordable prices”, he also Declared, adding: “Our regulatory and compliance teams through the EU will commit our EU and national government levels to study these recommendations and examine how Shein can play our role in strengthening our industry to improve online shopping experience for European consumers.