On 6 September, the German Federal Ministry of Economics and Technology (“BMWK”) published an E-Commerce Action Plan proposing a strategy for effective enforcement of EU law and a level playing field for all businesses. The BMWK points out that EU-standards are often not respected, in particular in relation to products from third countries. This includes infringements of product safety rules, consumer laws, customs and import regulations as well as intellectual property rights.
The Action Plan sets out a series of measures to address the challenges posed by e-commerce. Here is a closer look at its key elements.
The BMWK proposes to extend the powers of market surveillance authorities so that they can take direct action against online platforms if no responsible economic operator can be identified. Additionally, it proposes a collaborative approach between national and European market surveillance authorities and customs. This would include automated controls, coordinated inspections and test purchases to ensure that imported goods comply with EU safety, environmental and quality standards. Economic operators shall ensure that they can be contacted by the authorities throughout the distribution of their products and appoint a legal representative in the EU.
The Action Plan provides for the rapid end of the EUR 150 duty-free limit quickly. At present, only import VAT is payable on purchases from online retailers outside the EU worth less than EUR 150, but not customs duties. This has led to a flood of cheap goods on the European market. It is even suspected that many of these goods are split into several packages to remain below the duty-free limit.
The BMWK calls on the European Commission to strictly enforce the DSA. Illegal offers, such as unsafe products or product piracy, must be removed and must not be available in the European Union. For active enforcement the DSA, the European Commission should work with the national Digital Services Coordinators to collect data on infringements so as to identify systematic violations. In addition, fines should be imposed to deter operators from committing further infringements. The reporting tool of the Federal Network Agency, Germany’s (main) Digital Services Coordinator, should be more strongly promoted.
The BMWK is proposing a “Digital Product Pass” containing all relevant information on the safety of a product, as well as on environmental and health protection. Operators of online trading platforms shall be obliged to review this information for completeness and plausibility.
In addition, the BMWK and associations shall provide information with the aim of motivating consumers to make sustainable purchasing decisions.
The Action Plan also addresses data privacy concerns, calling for closer collaboration between national data protection authorities and the creation of an EU-wide data protection body to ensure that personal data collected by online platforms is handled responsibly and in compliance with the General Data Protection Regulation (GDPR).
In addition to market surveillance authorities, associations should also be able to enforce the provisions of the EU Market Surveillance Regulation.
Finally, the Action Plan includes provisions for regular public reporting by the European Commission to ensure continuous evaluation and, if necessary, adaptation of the strategies.
The BMWK takes the view that the level playing field is threatened by non-EU economic operators that do not comply with existing EU legislation. It refers in particular to the range of products offered on Temu and SHEIN, which have recently become very successful in Germany. This increases the pressure on both online platforms which have also received requests for information under the DSA from the European Commission. It remains to be seen what the results of the Commission's investigations will be and how the DSA will be implemented in practice. What is certain is that market surveillance authorities, consumer watchdogs and competitors will be watching these developments closely.
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