The European Commission has announced that Chinese e-commerce platforms Temu and Shein will be held accountable for the sale of unsafe or non-compliant products on their platforms. This move is part of the EU’s broader effort to curb the influx of low-cost e-commerce imports, which authorities say pose consumer safety risks and unfair competition to European retailers. The Commission also revealed that it would oversee a joint investigation by the Consumer Protection Cooperation Network into Shein, citing potential violations of EU consumer protection regulations.
This aligns with a similar initiative in the United States, where authorities recently revoked a trade provision allowing companies such as Temu and Shein to ship low-value packages duty-free. Concerns over these imports stem from the sheer volume of low-value goods entering the EU. In 2023, approximately 4.6 billion items priced below €22 ($23) were imported, equating to 12 million parcels per day, with 91% originating from China. The reported volume has doubled compared to the previous year, exacerbating regulatory and environmental concerns.
Under the new guidelines, online marketplaces could be held liable for selling dangerous or non-compliant products. While platforms are generally exempt from responsibility for sellers’ illegal actions, they must comply with certain conditions to maintain this exemption. The EU Commission stressed that the growing presence of low-cost imports not only jeopardizes consumer safety but also undermines European businesses adhering to stricter regulatory standards.
To manage the rising influx of these goods, the Commission is set to propose a handling fee on e-commerce imports, which would help offset the costs of regulatory oversight. Additionally, the EU is pushing for the swift adoption of its 2023 proposal to eliminate duty-free exemptions for parcels under €150, as part of a broader customs reform initiative. A newly introduced product safety sweep will allow EU authorities to inspect items using an e-surveillance tool before they are shipped, ensuring that potentially dangerous products are identified and flagged in advance.
The initiative aims to strengthen consumer protection while addressing concerns related to sustainability and environmental impact. “We want to see a competitive e-commerce sector that keeps consumers safe, offers convenient products, and is respectful of the environment,” stated EU tech chief Henna Virkkunnen. Shein has responded by pledging cooperation with regulators, stating that it shares the CPC Network’s objective of ensuring European consumers can shop safely online.
“We intend to work closely with the CPC Network and the Commission to address any concerns,” a company spokesperson said. Temu, which has been under EU investigation under the Digital Services Act since October 2023, has not yet provided an official response. EU officials confirmed they are currently reviewing the platform’s reaction to regulatory concerns and feedback from consumer watchdogs. – By MENA Newswire News Desk.