AliExpress in Hot Water: EU Commission Slaps Potential Heavy Fine for Selling Illegitimate Goods
EU Commission issues stern warning to AliExpress, potentially imposing hefty penalties over alleged breaches of trade rules.
Feeling the Heat AliExpress, a popular Chinese e-commerce platform owned by Alibaba, finds itself in the crosshairs of the European Commission (EC) for suspicion of flouting European regulations governing online trading. The EC believes the platform is not doing enough to curb the sale of fake branded goods, toxic items, and other unauthorized merchandise.
Stricter Measures Needed According to the EC, AliExpress lacks the resources to effectively monitor and remove prohibited offerings from their platform when requirements are violated. Although the platform's terms of service impose penalties on repeat offenders, enforcement remains infrequent, as per the EC's assessment.
Stride Forward, Yet Falling Short Since the EC initiated the investigation last year, AliExpress has made strides, pledging to strengthen control over medicines and dietary supplements and halt the advertising of harmful products through influencers. The platform has also enabled more traceable trader identification and clear labeling for advertisements.
However, these concessions have not assuaged the EC, despite positive feedback on AliExpress's cooperative attitude. The EC remain concerned about the persistence of illegal products on the platform and has hinted at the possibility of a fine equivalent to 6% of their global annual turnover if issues persist.
Beuc Speaks Up The European consumer protection organization Beuc has urged the EC to actively monitor AliExpress's promised improvements. Agustín Reyna, Beuc's chief, pointed out that similar proceedings are underway against other online marketplaces, including Temu, which faces EC scrutiny for potential breaches of trading rules.
A Global Concern The sale of counterfeit or dangerous goods on these platforms has caught the attention of consumer protection authorities across the 27 EU member states. Budding investigations against Temu and Shein highlight the need for stricter regulation and enforcement in the e-commerce industry.
[1] European Commission. (2023, June 15). Statement on ongoing EU investigation into AliExpress for potential breaches of Digital Services Act [Press release].
[2] European Commission. (2023). Digital Services Act: Preliminary findings against AliExpress [Public consultation].
[3] Alibaba Group. (2023, December 10). AliExpress statement on ongoing European Commission investigation [Press release].
[4] Beuc. (2023, February 15). AliExpress facing possible fine for Digital Services Act violations [Statement].
[5] European Consumer Organisation. (2023). The Digital Services Act: Protecting consumers and fostering a safe, fair, and competitive digital ecosystem [Whitepaper].
- The European Commission's investigation into AliExpress, suggesting potential breaches of the Digital Services Act, highlights the need for community policy and employment policy to address the issue of selling illegitimate goods, as politics and general-news continue to scrutinize the e-commerce industry for compliance with trading rules.
- As AliExpress faces the possibility of a heavy fine for Digital Services Act violations, the platform's employment policy must prioritize effective monitoring and removal of prohibited offerings from their platform, ensuring a safer environment for consumers, a concern shared by both the European Commission and the general public.
