E-commerce: How the New European Rules Will Affect You
Two European regulations are taking effect to protect buyers on e-commerce sites and online platforms: the Digital Services Act (February 17) and the Digital Markets Act (March 6). Is this good news for consumers?
Yes, according to the European Consumer Center France, because "marketplaces"—platforms that host independent sellers, among others—will have to be more transparent and clear about the sellers they host and the products offered for sale.
Whether it’s for home meal delivery, selling used clothing, buying a home appliance, or renting a place to stay, consumers often use a “marketplace.” These intermediaries bring together a large number of listings on a single website, connecting sellers with buyers in exchange for a commission paid by the seller.
But this convenience can create confusion for consumers: the seller is not necessarily the business that owns the website where the transaction takes place. Thus, in the event of a problem following a purchase on a French e-commerce site, the seller to contact may be based elsewhere in Europe or even outside the European Union.
As of February 17, 2024, the Digital Services Act (DSA) applies to all online marketplaces. Until now, when you booked a ride-hailing service through an app, for example, you didn’t know exactly who your driver was or how to contact them after the ride if you had a complaint. And the platform that connected you to the driver wasn’t always cooperative.
From now on, marketplaces are required to clearly identify the businesses whose products and services they host. Before publishing a listing, the platform must allow these businesses to provide customers with all relevant information about their products, their identity, and product labeling and marking. The seller’s contact information (address, phone number, registration number) must be accessible from the product listing. This way, you know who you’re dealing with when you shop online, and you also know who to contact in case of a delivery issue or if the product doesn’t meet specifications.
Combating Illegal Products and Services
In addition, the DSA targets illegal products and services that are sometimes sold on marketplaces. These may include, for example, cosmetics containing banned substances or counterfeit goods.
To combat the sale of products that do not comply with European standards, marketplaces must now conduct random checks on the products and services sold on their sites. A legal representative designated by the platform must handle all requests to remove dangerous products. And if the platform identifies an illegal product for sale on its site, it is required to inform consumers.
More Freedom for Consumers in Digital Markets
Starting March 6, tech giants are expected to face more competition. The Digital Markets Act (DMA) targets, among others, very large companies whose online platforms hold a dominant market position. This includes Amazon Marketplace, Meta Marketplace, Google Play, and the App Store. They will now have to stop favoring their own services over those of providers on their marketplaces. They will also have to allow businesses to offer their customers promotional deals outside the platform.
Finally, tech giants like Google and Apple will no longer be able to force their own software as the default when you install and set up your new smartphone. Instead, you’ll be presented with a screen offering multiple options so you can install the apps of your choice. And for those whose phones or tablets already come with pre-installed apps such as Google Play or the App Store, you’ll be able to easily uninstall them starting March 6.
