The European Union is taking action against the sale of “very dangerous” products on online platforms like Shein and Alibaba from China, with the Justice Commissioner acknowledging the need for better protection of European consumers. Michael McGrath, in an interview with the Financial Times, expressed concern over the influx of unsafe goods entering the EU directly from China, emphasizing the importance of safeguarding citizens and ensuring fair competition for businesses.
McGrath highlighted the alarming rate at which hazardous products are entering the EU, posing significant risks to individuals and even potential loss of life. With customs and enforcement officers struggling to intercept a small fraction of these products, McGrath emphasized the urgency for improved measures to address this growing issue.
The EU is set to empower the European Commission to investigate severe cross-border cases and update consumer protection laws to enhance market surveillance. McGrath criticized the current system as inadequate and called for stronger penalties to deter platforms from selling dangerous goods.
Toys and cosmetics are among the commonly identified risky products, with online marketplaces falling under technology regulations rather than retailer obligations. Despite platforms not being held liable for products sold by external retailers, they are required to cooperate with authorities in removing unsafe products from sale.
A recent survey revealed the ongoing sale of hazardous toys in the EU, prompting regulatory scrutiny on platforms like Shein for potential violations. Brussels is evaluating the legality of products sold by Shein under the Digital Services Act, while France has taken action against the platform for advertising questionable items.
Additionally, the EU plans to eliminate tariff exemptions for shipments under €150 by 2028, imposing interim charges per product type in parcels starting July 1. The EU aims to establish a customs tracking hub and impose handling fees on packages to enhance monitoring and regulation.
Notably, the US recently eliminated its $800 threshold for imported goods, leading to a reduction in small parcel volumes. Shein has expressed alignment with the EU’s consumer protection goals and is cooperating with authorities, while Joom and Alibaba have not responded to inquiries regarding the matter.
