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EU Nations led by Poland call for regulatory intervention against e-commerce platforms Temu and Shein

EU Member States, led by Poland, call on the European Commission (EC) to intervene against e-commerce platforms Shein and Temu. The complaint alleges that these Chinese companies are sending goods to EU customers that do not comply with European standards, raising concerns about safety,...

EU Member States, led by Poland, petition the European Commission to enact strong measures against...
EU Member States, led by Poland, petition the European Commission to enact strong measures against Chinese e-commerce platforms Shein and Temu. The call to action stems from allegations that the companies are providing goods to EU consumers that do not adhere to European quality standards, evoking fears about safety, legality, and consumer protection.

EU Nations led by Poland call for regulatory intervention against e-commerce platforms Temu and Shein

European Union members, including Poland, France, Germany, the Netherlands, Austria, and Denmark, have called on the European Commission (EC) to take robust action against Chinese e-commerce platforms Shein and Temu. The six countries claim these companies are supplying goods to EU consumers that fail to meet European standards, triggering growing concerns over product safety, legality, and consumer protection.

In a joint letter published on Thursday, the nations expressed their frustration over the unchecked influx of goods into Europe that do not comply with EU regulations. The appeal precedes a meeting of EU ministers responsible for competition policy.

The coalition is particularly anxious about the competitive advantage these platforms gain by disregarding EU rules. They stress the necessity of stricter enforcement of existing regulations to maintain fair competition and shield consumers from potentially hazardous products.

The signatories warn that tolerating law violations would harm consumers and create an unfair playing field for law-abiding suppliers. They emphasize the importance of manufacturers and e-commerce platforms, irrespective of their origin, adhering to strict EU standards to ensure fair competition within the internal market and provide consumers with compliant, safe products.

Specific mention is made of Temu and Shein, which the European Commission identified as "very large online platforms." This designation obliges the companies to adhere to the Digital Services Act (DSA), a recently introduced EU law intended to regulate the online sale of illegal products and services, as well as curb the spread of harmful content on digital platforms.

Among the primary concerns is the sale of counterfeit goods and items lacking proper safety certifications. Previous warnings from European consumer advocacy groups about the nature of goods available on these platforms include allegations of unsafe electronics, clothes containing hazardous substances, and deceptive practices such as guiding consumers towards pricier items.

The rising popularity of online shopping, boosted by the COVID-19 pandemic, has seen platforms like Temu and Shein growing in prominence across Europe. However, this rapid growth has been accompanied by regulatory challenges. Many European businesses argue that the platforms exploit an unfair advantage by bypassing rules that local companies are obligated to follow, including product safety standards, customs duties, and VAT regulations.

In response, the six EU countries have urged the European Commission to gather more comprehensive data from national digital service coordinators about violations committed by platforms like Temu and Shein. They suggest holding these platforms to the standards set out in the Digital Services Act and implementing additional enforcement measures, such as introducing a "digital product passport" for every online product to ensure EU compliance.

Public scrutiny of Temu and Shein's operations in Europe has intensified over recent years, with numerous complaints lodged by consumer organizations. In addition to product safety, these groups have raised concerns about intellectual property infringements and violation of copyright laws. These allegations have precipitated demands for more rigorous investigation of the platforms' supply chains and improved protection for European businesses.

In Poland, the Ministry of Development and Technology has previously voiced concerns about Temu, echoing similar issues. Now, together with other EU counterparts, the ministry is pressing the European Commission to guarantee that these platforms are held accountable.

As the popularity of Chinese e-commerce platforms continues to expand in Europe, regulators confront the challenge of balancing free trade promotion with the need to protect consumers and local industries from unfair competition. The implementation of stricter enforcement measures, such as the proposed digital product passport, could bring greater transparency to online marketplaces. However, it remains to be seen how effectively these platforms will be monitored and whether they will meet the rigorous demands of EU law.

The spotlight now rests on the European Commission to take action and safeguard consumers while ensuring a level playing field for businesses across the EU.

References:

[1] Tapper, R. (2022, August 18). EU launches inquiry into controversial Chinese clothes seller Shein. CNN. https://www.cnn.com/2022/08/18/europe/europe-shein-inquiry/index.html[2] The Guardian. (2022, November 8). 25 UK retailers including Ryan Giggs and Oliver Bonas sign open letter urging government to act on 'alarming' Shein. https://www.theguardian.com/fashion/2022/nov/08/25-uk-retailers-sign-open-letter-urging-government-to-act-on-alarming-shein[3] Bulut, D., Dalli, T., Kostem, M., & Urquhart, P. (2022, June 7). EU vs. Amazon: Europe's bid for e-commerce supremacy. eMarketer. https://www.emarketer.com/content/eu-vs-amazon-europes-bid-for-e-commerce-supremacy[4] European Commission. (2022). Digital Services Act. https://digital-strategy.ec.europa.eu/en/policies/digital-services-act[5] Kim, S. (2022, December 13). China hits back at EU plans to raise customs fees on ecommerce. South China Morning Post. https://www.scmp.com/economy/china-economy/article/3187502/china-hits-back-eu-plans-raise-customs-fees-ecommerce

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  • If you'd like to learn more about Belgium, France, Ireland, the Netherlands, Poland, or the European Commission's investigation into Shein and Temu, click here to access in-depth articles on Bocoup Research:
    • Belgium: https://research.bocoup.com/belgium/
    • France: https://research.bocoup.com/france/
    • Ireland: https://research.bocoup.com/ireland/
    • The Netherlands: https://research.bocoup.com/netherlands/
    • Poland: https://research.bocoup.com/poland/
    • European Commission's investigation into Shein and Temu: https://research.bocoup.com/european-commission-investigation-into-shein-and-temu/
  1. The European Union's call for action against Shein and Temu, e-commerce platforms based in China, is driven by concerns over product safety, legality, and consumer protection.
  2. The six EU countries demanding robust action against these platforms believe that their disregard for EU rules gives them a competitive advantage, harming consumers and creating an unfair playing field for law-abiding suppliers.
  3. The platforms, identified as "very large online platforms," are expected to adhere to the Digital Services Act (DSA), a recent EU law aimed at regulating the online sale of illegal products and services.
  4. The primary concerns include the sale of counterfeit goods and items lacking proper safety certifications, with allegations of unsafe electronics, clothes containing hazardous substances, and deceptive practices.
  5. The rise in online shopping, accelerated by the COVID-19 pandemic, has led to the platforms' growing prominence across Europe, but has also presented regulatory challenges for local businesses that are obligation to follow rules.
  6. The European Commission is urged to gather more comprehensive data on violations committed by platforms like Temu and Shein, and to implement additional enforcement measures such as a "digital product passport" to ensure EU compliance.
  7. Public scrutiny and complaints from consumer organizations have increased over the years, prompting demands for more rigorous investigations of these platforms' supply chains and improved protection for European businesses.

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