Online Marketplaces Face Accusations: Incomplete Product Details Prevalent
The Digital Services Act (DSA), set to take effect from February 2024, will impose heightened due diligence obligations on large online platforms to ensure transparency and consumer trust in digital markets. These obligations include risk mitigation duties, transparency obligations, data access for researchers, and the integration of voluntary codes of practice [1].
The DSA targets very large online platforms (VLOPs) such as Amazon, eBay, and Temu, requiring them to maintain accurate and clear information to uphold consumer rights and prevent misleading practices [1]. Although explicit detailed provisions on incomplete product information are not directly outlined in the available search results, the emphasis on transparency and risk mitigation implies that marketplaces have a responsibility to ensure product listings are truthful and complete [1].
Currently, platforms like Amazon and eBay are addressing incomplete product information through various mechanisms. They are ensuring transparency in content moderation, incorporating compliance with the DSA’s risk mitigation and transparency requirements into their operational practices, and participating in voluntary codes and audits that include adherence to truthful advertising and product information standards [4].
However, a recent evaluation by the Federation of German Consumer Organizations (VZBV) found that product information was often incomplete or missing on large online marketplaces. None of the 30 pages examined contained all mandatory information as required by law. The shortcomings in providing mandatory information varied among shopping platforms, with some companies rejecting the allegations made by the VZBV [3].
Kaufland, a popular online retailer, prioritises providing information and complying with legal regulations, but holds vendors responsible for the presentation and legal conformity of their products [3]. On many pages, it was unclear whether warning notices were necessary, and a commitment to comply with EU law was sometimes missing on some platforms [3].
In response to these findings, Zalando welcomed efforts to increase transparency for consumers in the digital space and plans to review their own processes [2]. Media Markt announced plans to strengthen the control of vendor information and continuously work on improvements in the interest of consumer protection [3]. Otto, another online retailer, stated that they fulfill all legal information obligations and block vendors in case of violations [3].
Consumer advocates checked three product pages each from the categories of toys, electronics, and clothing on these marketplaces between March 20 and April 7. The findings revealed that many product pages were missing the vendor's phone number or email address, and it was often unclear who the manufacturer was or whether the seller was also the manufacturer [2].
Ramona Pop, president of the VZBV, stated that online marketplaces are booming but pose a risk of unsafe products and that it's often unclear who is responsible when problems arise [2]. She emphasised that customers should be able to contact the responsible parties in case of problems.
In summary, under the DSA, online marketplaces must implement robust transparency and risk mitigation measures to combat incomplete or misleading product information as part of their due diligence, with reporting, auditing, and consumer communication requirements playing key roles [1][2][4]. As the DSA approaches, it is expected that online marketplaces will take further steps to ensure transparency and consumer protection.
In the context of the Digital Services Act (DSA), large online platforms like Amazon, eBay, and Temu are expected to uphold consumer rights by ensuring truthful and complete product listings to prevent misleading practices. As the DSA mandates, these platforms should integrate voluntary codes of practice and implement rigorous risk mitigation and transparency measures to ensure compliance.
With the impending arrival of the DSA, it is anticipated that online marketplaces will take additional steps to improve transparency and enhance consumer protection by providing all mandatory product information as required by law.
