EU’s War on Fake Cheap Goods Fails, Consumer Group Warns of ‘Missed Opportunity’

EU's War on Fake Cheap Goods Fails, Consumer Group Warns of 'Missed Opportunity'

The European Union’s efforts to combat cheap, substandard products from China, often sent directly to end-consumers, have been deemed insufficient by the German Consumer Association (VZBV). The organization criticizes the proposed measures against platforms like Temu and Shein as inadequate, stating that the plans are a “wasted opportunity.” According to VZBV’s Stefanie Grunert, “We fear that products on the platforms will become more expensive, without becoming safer.”

The EU Commission reports that a significant number of small items, mostly from China, are being sent to consumers daily, with the number doubling from 2023 to 2024. The commission presented measures on Wednesday aimed at ensuring a safe online shopping experience.

The new proposal involves introducing a processing fee for packages that would benefit customs authorities. The long-discussed customs reform has been under negotiation for over a year and a half and the plan is to impose customs duties on packages from non-EU countries with a value under €150. A new European customs authority will collect the fees directly from the platforms and sellers. This could result in cheaper products becoming more expensive.

The VZBV demands that platforms take more responsibility for ensuring the safety of products and that unsound products should not be sold in the first place. Online marketplaces should cross-check new offers with the EU’s database of hazardous products before making them available for sale.

The German Trade Association welcomes the EU’s plans but criticizes the added bureaucracy for local companies. The German E-Commerce and Parcel Trade Association, on the other hand, calls for existing rules to be better enforced. Zalando’s co-CEO, Robert Gentz, endorses the proposed “pragmatic solutions.” A Shein spokesperson expressed support for “all efforts to strengthen the trust and security of European consumers in online shopping” and will review the recommendations.