After regulatory intervention in the European Union, e-commerce platform Shopify has committed to make its site safer for shoppers. As per EU, a number of complaints were filed against the company after which it agreed to combat fake accounts of traders.
Shopify committed to improve design of its templates for online store’s generators for terms and conditions, contact pages, refund and privacy policies and refund. The company also promised to provide fields for contact details and company information, clear guidance to merchants on EU consumer law and give details about any EU trader whenever required by national consumer authority.
Shopify also promised to take down online store in case of concerns raised by national consumer protection authorities in the European Union and provide “relevant company details”. The Canada-based company has committed to create effective and fast ‘notice and action’ procedure for national consumer authorities to report concerns.
Almost 75% of internet users in the EU are shopping online. This is a huge market for scammers and rogue traders to exploit, and they will continue to do so unless we act.
Didier Reynders, EU Commissioner for Justice
Reacting on the move, EU Commissioner for Justice, Didier Reynders said, “Almost 75% of internet users in the EU are shopping online. This is a huge market for scammers and rogue traders to exploit, and they will continue to do so unless we act”.
“We welcome Shopify’s commitment to ensure that traders operating on its platform are aware of their responsibilities under EU law, and are taken down if they break the rules,” he further said.
Complaints Peaked During Pandemic
As per EU, it received numerous complaints regarding web stores on Shopify engaged in fake offers, fake scarcity claims and other illegal practices like not providing contact details and supplying counterfeit goods.
The complaints peaked during COVID-19, after which EU, network of national consumer protection (CPC) authorities led by Belgium’s Directorate General for Economic Inspection launched a dialogue with Shopify in July 2021. The dialogue was aimed to press the company to introduce changes to address issues related to illegal practices by traders on its platform.
Monitoring Shopify’s Commitments
The EU said that the region’s national consumer authorities will reinforce their cooperation with the Canadian Competition Bureau against Shopify merchants not based in the EU/EEA — suggesting they inform domestic regulator of Shopify regarding consumer safety issues that may affect shoppers elsewhere.
The press release by European Union stated that the implementation of the commitments will be monitored by Consumer Protection Cooperation Network. It can also take actions at national level to ensure that the EU standards are maintained. CPC will even look into the complaints registered by consumers.
A similar EU-CPC dialogue procedure kicked off after a series of complaints were filed against the video sharing platform TikTok. As a result, TikTok ensures to beef up ad disclosures. EU consumer protection regulators also pressurised Amazon to drop Prime cancellation “dark patterns” in Europe.
