European Parliament recommends tough regulation of online marketplaces

Only weeks ahead of the publication of a draft law to regulate online platforms – think Amazon, eBay and Facebook – MEPs adopted their recommendations for this major reform. The goal of the planned Digital Services Act is to upgrade the EU’s rules from 2000 which touch upon the role of platforms in online shopping and the sale of goods and services online.

Consumers are increasingly turning to purchasing things online. But from consumer groups from across the EU shows the damaging consequences of fake reviews, fraudulent advertising and the sale of unsafe products.

The European Parliament has which – among other things – recommends to:

  • Address and reinforce the liability of online marketplaces.
  • Set up a 'know your business user’ obligation for platforms to check their traders and an obligation to conduct random checks on products they facilitate selling.
  • Impose stricter rules on behavioural ads and content optiminisation.

BEUC – The European Consumer Organisation commends this strong signal to better protect consumers online. We have been calling for strong obligations and liability rules to ensure online marketplaces finally take real action to make online shopping safer.