Laws and regulations

Seventeen European trade organizations have recently published an open letter to the European Union to express their disapproval of a new withdrawal button. This button allows consumers to undo a transaction after placing an order. “This button exceeds its purpose”, said Marlene ten Ham of Dutch ecommerce association Thuiswinkel.org.

The European Union is implementing the Digital Services Act and the Digital Market Act, which impact online marketplaces and social media platforms. This package of rules will create a safer digital space for users and fight rogue sellers.

Nearly 40 percent of online shops in Europe uses so-called ‘dark patterns’. These are ways of encouraging customers into making a purchase under false pretenses, such as hiding costs and false countdowns.

Online marketplaces such as Amazon, eBay and Vinted will now have to report sales made on their platforms by end users to the tax office. This is part of a new EU law. Private sellers will be reported when they make over 2,000 euros or have over 30 transactions per year.

Google will provide more transparency for consumers buying products through the company’s ecommerce platforms, such as the Google Store. The tech giant is doing so to comply with rules set by the European Union. However, the company still breaches EU laws on geo-blocking.

Online payment provider Paypal is under investigation by the Federal Cartel Office (FCO) in Germany. The company has allegedly hindered market and price competition in its terms and conditions, the German watchdog says.

Online luxury retailer Yoox Net-A-Porter Group has been fined 5.25 million euros by the Italian antitrust agency. The group is fined over misleading pricing and its return policy. The retailer has already announced plans to appeal against the ruling.

Amazon has reached a settlement with the European Commission. The ecommerce giant says it will not use data from partner sellers for its own products. It will also add a second Buy Box. By doing this, the platform avoids a billion dollar fine.

German antitrust watchdog, the Federal Cartel Office (FCO), has announced that it is widening its investigation into Amazon’s activities in Germany. The renewed investigation will take into account a reformed German competition law, targeting digital giants. The investigation looks into pricing and instruments applied by Amazon to control marketplace sellers.

The European Commission is working on new laws to reduce packaging waste. The plans include cutting down on empty space in ecommerce parcels as well as an increase in reusable packaging.  A draft of the rules, which was supposed to come out at the end of the month, was leaked early.

The French competition authority has ordered a fine for Essilor International, which produces lenses for glasses. The company banned selling its lenses on online platforms in the past. According to the watchdog, this has unfairly hindered ecommerce businesses.

Amazon has filed lawsuits in Italy and Spain in order to stop fake reviews on its platform. It marks the first criminal complaint of the ecommerce giant in Europe. Amazon also sent warnings to five websites in Germany concerning the issue.

The Dutch National Hotline for Internet Scams is warning consumers about new fake online stores, claiming to sell firewood and wood burning stoves. With energy prices rising all across Europe, the department expects more of these online shopping scams.

In a court case, Dutch marketplace Bol.com was told that its order button does not meet European standards. The marketplace needs to make it clear that customers are entering an obligation of payment. This could have consequences for other online stores.

Fashion platforms Asos and Boohoo are being investigated by the British Competition and Markets authority regarding greenwashing. Their claims about sustainability may be misleading the public. The CMA says it ‘won’t hesitate to take legal action’.