European retailers demand enforcement of EU rules against unfair competition

A lot of fast-growing retailers and marketplaces from third countries do not abide by European rules on product safety and consumer protection. The European Union must act, EuroCommerce demands.

Enforcement falls short

The European advocacy group for retailers and wholesalers is calling for a “more effective and efficient enforcement of EU rules” to ensure the products available to shoppers in Europe are safe, not misleading and in line with all EU rules. To that end, the organisation is launching a campaign called #Compliance4All.

“The EU has the highest level of consumer protection and product safety in the world”, says director Christel Delberghe, “but, increasingly, we fall short on enforcing our own rules – particularly when it comes to third-country traders and marketplaces.” National authorities do not cooperate efficiently, she argues. Fast-growing retailers and marketplaces from third countries largely ignore EU legislation; European customs services do not have the manpower and resources to effectively control the influx of imports.

Unequal playing field

That influx of non-compliant products and misleading offers puts consumer safety at risk and creates an uneven playing field for EU-based retailers who do have to meet high standards and bear the cost of compliance. The impact is felt most in sectors such as toys, cosmetics, textiles, shoes and electronics, EuroCommerce says. And this at a time when the EU urgently needs to boost its own competitiveness.

After all, tests show that products from outside of the EU often contain chemicals that pose health risks, or pose choking or strangulation risks (for toys and textiles, for example). Information on environmental impact may also be incorrect, products may be made with forced labour and consumers are exposed to aggressive marketing practices, while important information is often omitted.

Chinese players

Although EuroCommerce does not name names or countries, it is clear that the retail federation is mainly referring to the increasing competition from low-cost Chinese players like Shein or Temu. These are increasingly under fire for selling counterfeits and using manipulative marketing techniques.

At the request of European consumer organisations, the European Commission has just called Temu to account. That retailer does claim however that it is already taking measures to ensure consumer safety.