As online shopping becomes an integral part of everyday life in Europe, a growing number of products purchased by EU consumers are entering the market through online marketplaces hosted outside the EU. This booming cross-border trade has unlocked convenience and affordability — but it has also exposed a profound regulatory gap. Today, millions of products arrive in the EU each year without meeting basic European standards for safety, sustainability, or fairness.
A broad coalition of 70 environmental NGOs, consumer protection organisations, and industry associations is now calling on EU policymakers to urgently address these persistent loopholes. The message is clear: the current system allows unsafe, illegal, and non-compliant products to flood the EU market with little oversight, and it is time for lawmakers to act.
A Growing Tide of Non-Compliant Products
According to the European Commission, 4.6 billion low-value parcels (under €150) entered the EU last year alone. Most originate from third-country sellers who use online platforms to reach EU customers directly. These sellers often operate without an EU-based representative — the actor who, under EU law, should be responsible for ensuring that products and packaging comply with European rules.
The result is a surge of goods that violate EU legislation on product safety, environmental standards, chemical restrictions, extended producer responsibility (EPR), and intellectual property rights. During peak shopping periods, such as Black Friday and the Christmas season, this influx becomes impossible for national authorities to control.
Compounding the problem is the increasing volume of targeted advertising. Recent changes in U.S. trade policies have redirected significant marketing effort toward Europe, further amplifying European consumers’ exposure to questionable products promoted through search engines and social platforms.
The Missing Accountability: Online Marketplaces
One of the central issues highlighted by NGOs, industry, and Market Surveillance Authorities is that online marketplaces are not recognised as “economic operators” under current EU law. This legal distinction is crucial.
Manufacturers, importers, and authorised representatives must proactively ensure that every product placed on the EU market is safe and compliant. Online marketplaces, however, have no such obligation. They only need to act after being informed of potential non-compliance.
The Digital Services Act, the General Product Safety Regulation, and several EU Green Deal files attempted to address aspects of online safety — yet they did not close this structural gap. As long as marketplaces are not required to verify compliance before listing products, European consumers remain at risk.
Evidence of a System Under Strain
Multiple studies and investigations demonstrate the scale of the problem:
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LightingEurope’s 2024 mystery shopper exercise found that 100% of inspected online lighting products were non-compliant, with all tested items failing safety standards in accredited laboratories.
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Toy Industry Europe’s 2024 checks showed that 80% of toys bought from third-party sellers on online marketplaces did not meet EU safety requirements.
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Courts in Germany have ruled against online sellers falsely claiming EU representation for medical devices — a serious breach of EU law.
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New obligations in Germany for platforms to verify WEEE (electronic waste) registration led to a dramatic compliance increase: 80,000 new registrations in 2023, compared with 34,000 in 2022.
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A Eunomia study estimates that 5–10% of online EEE (electrical and electronic equipment) sales come from “free-riders” who evade EPR fees, representing 460,000 to 920,000 tonnes of unaccounted goods annually.
What the Coalition Is Asking For
To restore fairness and protect consumers, the coalition is urging EU policymakers to undertake a series of reforms:
1. Require an EU-based economic operator for every product sold online
Every product — regardless of where the seller is located — must have a designated entity within the EU responsible for ensuring compliance with all EU legislation, including packaging rules.
2. Recognise online marketplaces as economic operators
Marketplaces should be held responsible when products are sold by sellers outside the EU or when no responsible operator can be identified. This could be achieved through a horizontal EU regulation or by revising the DSA and the Market Surveillance Regulation.
3. Strengthen marketplace obligations
This includes:
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Verifying documentation and conducting sample tests to ensure product compliance
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Strictly implementing seller traceability rules
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Identifying and preventing repeated illegal behaviour by fraudulent sellers
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Checking energy labelling, EPR registration, and other product-specific requirements
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Assuming EPR obligations on behalf of sellers when necessary, including financial liability for fees and penalties
4. Improve product and seller traceability
The coalition calls for integrating existing EU databases (such as SCIP, EPREL, and ICSMS) and linking them to the Digital Product Passport, prioritising interoperability over new standalone systems.
5. Strengthen customs checks for small parcels
Key proposals include:
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Introducing a “deemed importer” mechanism for all small-parcel imports
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Abolishing the De Minimis threshold, which currently allows goods under €150 to bypass customs duties and controls
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Ensuring that small parcels meet the same compliance obligations as higher-value imports
6. Boost enforcement resources
Given the sheer volume of online imports, national market surveillance and customs authorities require far greater support. The coalition also welcomes discussions on creating an EU-level enforcement body dedicated to tackling online non-compliance.
A Crucial Moment for the EU’s Internal Market
The rapid growth of e-commerce has outpaced the regulatory framework designed to protect consumers and ensure fair competition. Without decisive action, the EU risks undermining the very principles that underpin its internal market: safety, environmental responsibility, and a level playing field for all businesses.
Recognising online marketplaces as accountable actors would be a major step toward restoring order and fairness in the digital marketplace. As the coalition warns, closing these loopholes is not only possible — it is urgently necessary to preserve consumer trust and protect Europe’s high standards.