European retailers and wholesalers call upon EU legislators and national authorities to establish an EU-level playing field for all players targeting EU-based consumers. All players, regardless of where they are established, should comply with EU regulation. To achieve this, we need a multi-faceted effective and efficient enforcement strategy based on all relevant legal instruments, aiming to incentivise competent authorities, Member States and the European Commission.
Key issue
Retailers compete fiercely for consumers’ favour every day, making them well-aware of what consumers expect and need. To maintain and grow that relationship consumers need to trust that the products they buy are safe and compliant, that their rights are respected, and that they have access to redress, no matter where, from whom, and how they purchase products and services. This trust is the foundation for growth and innovation, enabling small, new and unknown traders to market their products and services to consumers. To earn trust, enforcement of EU regulation is required. Enforcement authorities need to improve cooperation and coordination at EU and national levels with their peers and across policy domains. They cannot solve it alone. They need to break down the silos. #Compliance4All
The impact of unfair competition
In the past years competition from non-EU-based traders and marketplaces targeting EU-based consumers has drastically increased: the proportion of EU consumers making online purchases from sellers outside of the EU has risen by 36% between 2016 and 2022. Part of their rapid growth is based on unfair competition. More competition is always welcome, but all players need to respect the rules. Some non-EU-based players have doubled or even tripled their online market share in a very short amount of time. At least a part of the success of these third-country players is based on aggressive marketing practices, misleading and manipulating consumers, not respecting EU consumer protection rules, offering products that do not comply with EU product safety rules, lacking due diligence, disregarding customs rules, breaching data protection rules, creating unsafe online environments, subsidies received from authorities. #Compliance4All
Source: Thuiswinkel Monitor 2023
Putting consumers’ health and safety at risk
See study: Toy Industries Europe, 2024, Temu non-compliant toys
Consumers are suffering from unfair competition in multiple ways. Information about environmental impact is incorrect, products are made with forced labour, products contain chemicals above health-threatening levels, toys pose suffocation risk by small parts that can be swallowed or risk of strangulation, price reduction announcements are misleading, aggressive marketing practices push consumers into buying products they do not want or need, or information is omitted. We also observe the rise of game-like shopping experiences, which in combination with gambling-like mini-games, races with others, recommenders and monetary incentives to share with friends where in particular minors may be at risk. #Compliance4All
Enforcement and enforceability of existing rules is crucial for our long-term competitiveness
We call upon the European Commission, Member States and national authorities to systematically and seriously step up enforcement of EU rules and start investigating third-country players on their compliance with EU law. Unfair competition by third-country players can only be resolved by one coherent and coordinated enforcement strategy shared and supported by all relevant enforcement authorities. Enforcement authorities responsible for market surveillance, product safety, consumer protection, online content, data protection, extended producer responsibilities schemes, customs, and more need to improve cooperation and coordination at EU and national levels with their peers and across policy domains. They cannot solve it alone. They need to break down the silos. #Compliance4All
Undermining crucial investments in the digital and green transition
Source: Competitive advantage of Asian e-commerce – Kaupan Liitto
Consumers are suffering from unfair competition in multiple ways. Information about environmental impact is incorrect, products are made with forced labour, products contain chemicals above health-threatening levels, toys pose suffocation risk by small parts that can be swallowed or risk of strangulation, price reduction announcements are misleading, aggressive marketing practices push consumers into buying products they do not want or need, or information is omitted. We also observe the rise of game-like shopping experiences, which in combination with gambling-like mini-games, races with others, recommenders and monetary incentives to share with friends where in particular minors may be at risk. #Compliance4All
What we believe needs to happen
If we want a vibrant, healthy and competitive European retail sector in 2030 with strong EU-based players, decision-makers and enforcement authorities need to prioritise creating a level playing field. #Compliance4All
Sources
Reports / studies from members:
-
Handelsverband Deutschland – Third country traders and their influence on German trade (available in German only, 12 September 2024) Country: Germany
- Kaupan Liitto – Competitive advantage of Asian e-commerce; Test purchases from the Temu.com marketplace (17 September 2024) Country: Finland
Reports / studies by others:
-
Issue Brief – Shein, Temu and Chinese E-commerce: Data Risks, Sourcing Violations and Trade Loopholes (14 April 2023) Country: United States of America
-
The select committee on the Chinese communist party – Fast Fashion and the Uyghur Genocide, Interim Findings (June 2023) Country: United States of America
-
Greenpeace – Taking the Shine off Shein: A business model based on hazardous chemicals and environmental destruction (May 2024) Country: Germany
-
Johannes Kepler Universität Linz, Center of Retail and Consumer Research – EU Online Shopping Report, Gegenläufige Trendlinien und aktuelle Marktdynamiken (May 2024) Country: Austria, EU (data comparison)
-
L.Sarek – Party-state Support for Chinese E-commerce Export Development (June 2024) Country: China
Action by authorities
-
Ministry of Economic Development and Technology of the Republic of Poland – Letter to Temu and Letter to Shein (27 May 2024) Country: Poland
-
Douane – Stand van de Uitvoering Douane 2024 (4 June 2024) Country: The Netherlands
-
Bundesministerium für Wirtschaft und KlimaSchutz – Aktionsplan E-Commerce (6 September 2024) Country: Germany
-
Regierungspräsidium Darmstadt – Produkte von Online-Plattformen aus dem asiatische Raum in Fokus (18 September 2024) Country: Germany
-
Request by the German delegation for an AOB agenda item for the Competitiveness Council on 26 September 2024 Country: EU-wide
- Protecting consumers and tackling unfair competition by boosting EU oversight in e-commerce and imports Plenary – October 2024 European Parliament
Complaints / call for action to EU authorities:
-
BEUC – Complaint against Temu (May 2024) Country: EU-wide
-
WKÖ – Letter to Finance Minister Brunner (29 July 2024) Country: Austria
-
Handelsverband – Complaint against Temu (September 2024) Country: Austria
-
Handelsverband Deutschland – Letter to President of the European Commission, Ursula von der Leyen (23 September 2024) Country: Germany
-
Autorità Garante della Concorrenza e del Mercato – Recent launch of an investigation against Shein for possible misleading advertising (25 September 2024) Country: Italy
News articles:
-
Toy Industries of Europe – 95% of toys bought from new online platform break EU safety rules (20 February 2024) Country: EU-wide
-
Test.de – Temu beugt sich Verbraucherschützern (14 May 2024) Country: Germany
-
Öko-Test.de – Shein-Mode im Test: Zum Teil voller giftiger Chemikalien (10 October 2024) Country: Germany