Cracking down on illegal online sales making EU product representation mandatory

Cheap, counterfeit and unsafe products are flooding online marketplaces. This presents a significant risk to consumer safety, undermines the competitiveness of European businesses, and erodes consumer trust in the European market. "We are talking about 10 million small packages shipped every day directly to European consumers," said European Commission's Director for Consumer Policy (DG JUST) Isabelle Pérignon, who addressed Lighting Europe’s sponsored European Forum for Manufacturing last night in the European Parliament. 

Testing conducted by various organisations revealed that a high percentage of products purchased from online platforms failed to meet EU safety and compliance standards. “National authorities face significant difficulties in inspecting such a massive influx of goods,” Pérignon highlighted, suggesting the need for more robust and coordinated enforcement mechanisms. The Commission official also emphasised the importance of strong enforcement of existing EU legislation such as the new General Product Safety Regulation (2023) looking to improve traceability and accountability of products. In this regard, industry representatives unanimously pointed to the urgency of addressing the existing legal loophole that allows online marketplaces to easily introduce non-compliant products on the EU market and avoid responsibility for the goods sold on their platforms. 

When it comes to home appliances, small products such as coffee machines, kitchen blenders and irons are the most affected by the issue of illegal online sales. According to the European Commission’s Safety Gate data for 2023, 280 dangerous products were identified in the electronic equipment and appliances category in 2023. Representing the home appliance industry in Europe, APPLiA Director General Paolo Falcioni emphasised how “the current cascading effect of responsibility within the supply chain ultimately leads to a lack of accountability for non-compliant products.” To tackle this complex issue, he stressed the need “to mandate the presence of a European representative for each and every product put on the EU market” as a way to address the current legislative void and enhance clarity regarding legal responsibility. 

Members of the European Parliament in the room expressed a shared sense of urgency regarding the need to address the issue. In her role as host and facilitator of the discussion, MEP Ana Vasconcelos framed the event as a call to action to address the problem of unsafe products and their impact on consumer safety, fair competition, and the reputation of European industries. If on the one hand, consumers are directly affected, on the other European businesses are put at a disadvantage, as they struggle to compete with cheaper, non-compliant products. On this aspect, MEP Saudargas particularly recognised the complexities of regulating rapidly evolving online marketplaces, noting that the pace of technological development often outstrips the capacity of legislative frameworks to keep up. While acknowledging the potential for existing legislation to be leveraged, Saudargas emphasised the need for a balanced approach that supports European businesses while ensuring a fair and competitive marketplace.

Improving product safety and strengthening the Single Market will be one of the core pillars of the new European Commission’s plans for the next five years.