Market
23
Sep
2024
min read

Push for fairer online marketplaces should extend to refurbished products

A coalition of 58 European industry associations, led by APPLiA, has called for urgent regulatory reform of online marketplaces to level the playing field in the European Union (EU). The group, which includes both NGOs and industry bodies, is pressing EU policymakers to prioritize stricter enforcement and close legal loopholes in online trade during the upcoming 2024-2029 mandate.

Growing concerns over non-compliant products

Online marketplaces have made purchasing products easier and more convenient for consumers, offering broader product selections and flexible payment options. However, a rising number of non-compliant products are slipping through the cracks, flooding the EU market via these platforms. These violations range from product safety issues to infringements on intellectual property rights (IPR) and environmental regulations like extended producer responsibility (EPR) schemes.

APPLiA and its partners argue that this growing trend is not only harmful to the environment and consumers but also poses a significant threat to the competitiveness of European businesses. The coalition insists that without stronger enforcement, these non-compliant products will continue to undermine the internal market.

Background of APPLiA

APPLiA, the Home Appliance Europe association, represents the household appliance industry in Europe. Founded in 1958, the organization advocates for the sector's interests at the European level, promoting policies that foster innovation, sustainability, and competitiveness. APPLiA works closely with EU institutions, member states, and international organizations to shape regulations that impact manufacturers and consumers alike.

The organization focuses on a wide range of issues, including environmental sustainability, product safety, energy efficiency, circular economy initiatives, and digital transformation. It plays a critical role in ensuring that home appliance manufacturers adhere to EU standards while also pushing for policies that support industry growth and fair competition.

Its efforts to enhance compliance in online marketplaces are part of a broader initiative to ensure that the digital economy upholds the same standards of safety, sustainability, and responsibility as traditional sales channels.

Recommendations for fairer marketplaces

To address these issues, the coalition proposes several key reforms aimed at holding online marketplaces accountable:

  1. EU-based economic operators: The coalition calls for a legal requirement mandating that all products sold online into the EU must have a responsible economic operator based in the EU or European Economic Area (EEA). This would ensure that products meet EU standards and compliance regulations.
  2. Recognition of online marketplaces as economic operators: If no other entity is responsible for placing a product on the market, online platforms should be held accountable for ensuring compliance.
  3. Enhanced obligations for online marketplaces: Stricter requirements should be placed on platforms to ensure that only compliant products are sold.
  4. Improved product traceability: All products should be traceable throughout the supply chain to prevent illegal imports.
  5. Empowering customs authorities: Strengthening the role of customs authorities is essential for stopping non-compliant goods from entering the market through small packages.

Strengthening EU enforcement

One of the coalition’s main arguments is that current EU legislation does not sufficiently address the responsibilities of online marketplaces. The lack of clarity allows non-compliant products to be sold with minimal accountability, damaging both consumer trust and the European economy. By recognizing online marketplaces as economic operators, the coalition believes that a more balanced and competitive market can be achieved.

In conclusion, APPLiA and its partners are urging the EU to ensure that all operators within the internal market adhere to EU standards. This will foster fair competition, prevent unfair practices, and enhance enforcement by both EU member states and European authorities.

Secondary market

We believe this initiative is fully applicable to marketplaces selling used and refurbished devices, and by extension, to the entire market. Establishing a level playing field for all stakeholders is essential. This should include consistent enforcement of CE-approval standards, along with strict enforcement of marginal VAT regulations, to prevent legal inequalities.

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