#Compliance4All – Retailers call for a level playing field

European retailers and wholesalers call upon EU legislators and national authorities to establish an EU-level playing field for all players targeting EU-based consumers. All players, regardless of where they are established, should comply with EU regulation. To achieve this, we need a multi-faceted effective and efficient enforcement strategy based on all relevant legal instruments, aiming to incentivise competent authorities, Member States and the European Commission.

Key issue

Retailers compete fiercely for consumers’ favour every day, making them well-aware of what consumers expect and need. To maintain and grow that relationship consumers need to trust that the products they buy are safe and compliant, that their rights are respected, and that they have access to redress, no matter where, from whom, and how they purchase products and services. This trust is the foundation for growth and innovation, enabling small, new and unknown traders to market their products and services to consumers. To earn trust, enforcement of EU regulation is required. Enforcement authorities need to improve cooperation and coordination at EU and national levels with their peers and across policy domains. They cannot solve it alone. They need to break down the silos. #Compliance4All

 

Position paper Press release Sources Letter to policymakers

The impact of unfair competition

 

In the past years competition from non-EU-based traders and marketplaces targeting EU-based consumers has drastically increased: the proportion of EU consumers making online purchases from sellers outside of the EU has risen by 36% between 2016 and 2022. Part of their rapid growth is based on unfair competition. More competition is always welcome, but all players need to respect the rules. Some non-EU-based players have doubled or even tripled their online market share in a very short amount of time. At least a part of the success of these third-country players is based on aggressive marketing practices, misleading and manipulating consumers, not respecting EU consumer protection rules,  offering products that do not comply with EU product safety rules, lacking due diligence, disregarding customs rules, breaching data protection rules, creating unsafe online environments, subsidies received from authorities. #Compliance4All

Source: Thuiswinkel Monitor 2023

Putting consumers’ health and safety at risk

Source: Toy Industries Europe, 2024, Temu non-compliant toys

See study: Toy Industries Europe, 2024, Temu non-compliant toys

 

Consumers are suffering from unfair competition in multiple ways. Information about environmental impact is incorrect, products are made with forced labour, products contain chemicals above health-threatening levels, toys pose suffocation risk by small parts that can be swallowed or risk of strangulation, price reduction announcements are misleading, aggressive marketing practices push consumers into buying products they do not want or need, or information is omitted. We also observe the rise of game-like shopping experiences, which in combination with gambling-like mini-games, races with others, recommenders and monetary incentives to share with friends where in particular minors may be at risk. #Compliance4All

Enforcement and enforceability of existing rules is crucial for our long-term competitiveness

 

We call upon the European Commission, Member States and national authorities to systematically and seriously step up enforcement of EU rules and start investigating third-country players on their compliance with EU law. Unfair competition by third-country players can only be resolved by one coherent and coordinated enforcement strategy shared and supported by all relevant enforcement authorities. Enforcement authorities responsible for market surveillance, product safety, consumer protection, online content, data protection, extended producer responsibilities schemes, customs, and more need to improve cooperation and coordination at EU and national levels with their peers and across policy domains. They cannot solve it alone. They need to break down the silos. #Compliance4All

Source: EuroCommerce 2024

Undermining crucial investments in the digital and green transition

Source: Competitive advantage of Asian e-commerce – Kaupan Liitto

 

Consumers are suffering from unfair competition in multiple ways. Information about environmental impact is incorrect, products are made with forced labour, products contain chemicals above health-threatening levels, toys pose suffocation risk by small parts that can be swallowed or risk of strangulation, price reduction announcements are misleading, aggressive marketing practices push consumers into buying products they do not want or need, or information is omitted. We also observe the rise of game-like shopping experiences, which in combination with gambling-like mini-games, races with others, recommenders and monetary incentives to share with friends where in particular minors may be at risk. #Compliance4All

What we believe needs to happen

If we want a vibrant, healthy and competitive European retail sector in 2030 with strong EU-based players, decision-makers and enforcement authorities need to prioritise creating a level playing field. #Compliance4All

 

Sources

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Action by authorities

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