Online marketplaces: a serious issue all over Europe
A workshop, hosted by Eucolight, the European association for lighting WEEE compliance schemes, gathered over 100 experts to discuss online sales of non-compliant products. The workshop concluded that solutions must be implemented to make online marketplaces responsible for products sold through their portals. The workshop, held in Brussels on 17 October, discussed the widespread availability of products through online marketplaces that do not comply with consumer safety standards, VAT requirements, and environmental obligations. High level speakers discussed who should be legally responsible for the non-conformity of products, and how this can be introduced into European and national legislation. The scale of the problem Leva Vardanyan, Market Compliance Manager of the Lighting Industry Association (LIA), reported on a retail mystery shopper testing study. The initial findings of the survey revealed that a high proportion of lighting products sold through online marketplaces have serious electrical safety risks. According to Ms Vardanyan, just removing the individual products detected from the market cannot be the solution, changes in the law and stronger tools for market surveillance are needed. Richard Allen, Lobbyist from Retailers Against VAT Abuse Schemes (RAVAS) described the large scale of VAT avoidance through online platforms. He argued that marketplaces have a great responsibility here. Through amendments to VAT legislation, the EU and and some Member States are supporting this approach and making marketplaces responsible. Germany, where there are new VAT obligations for online marketplaces if the seller is not compliant, is a good example. Nigel Harvey, Chief Executive of Recolight described a study undertaken by the WEEE Scheme Forum, to check the WEEE compliance of products sold through online marketplaces. This showed that 54% of power tools, 76% of LED lightbulbs, and 88% of fitness watches did not comply. Commenting on the study, Nigel Harvey said “Evidence shows there is large scale WEEE non-compliance sales through online marketplaces. High street retailers have, for many years, checked the compliance of equipment producers. Online marketplace operators could – and should – do the same. There can be no excuse for knowingly aiding the sale of products that break the law.” Monika Romenska, Regulatory & Public Affairs Manager,of EXPRA (Extended Producer Responsibility Alliance for Packaging and Packaging waste) added “Distance sales already represent up to 20 – 30 per cent of the market across various waste streams in certain Member States. By avoiding paying for their collection and reprocessing costs, these sales distort the market: they impose an unfair cost on compliant producers, thus rendering these – mostly local companies – less competitive.” The importance of greater consumer education was also mentioned. Triin Saag, of the European eCommerce & Omni-Channel Trade Association (EMOTA) argued, for example, that “product safety is a two way street where consumers should also be educated.” Views from the Commission Hans Ingels of DG Growth, speaking about the Goods Package, highlighted three principles for Member States to counteract an over-extended presence of non-compliant products on the market “1) working with businesses to prevent non-compliances instead of only policing the market; 2) fit-for purpose tools to check online sales of products and follow-up; and 3) improved cooperation between authorities across the EU.” Bettina Lorz, of DG Environment, supported coordinate enforcement actions at supra national/ national level. She argued that customs, tax and enforcement officials should work in a joined-up fashion with the environmental authorities on product regulation and enforcement: The Goods Package could be a good opportunity for implement this kind of synergy. Next steps – online marketplaces must take responsibility Summarizing the discussions, Marc Guiraud, Secretary General of EucoLight, stated ‘It is urgent for policy makers and online marketplaces to take action to address non-compliance of products sold online. Member States are already starting to implement this at a national level”.
Online Sales of Non-Compliant Products – EucoLight Workshop brings together leading European Associations to highlight the scale of the problem
EucoLight, the European WEEE lighting trade association, is hosting a half day workshop on 17 Oct in Brussels to discuss the scale of the online non-compliance problem. Speakers from leading European Associations will share experiences, including WEEE freeriding, VAT non-payment, and non-compliance with safety standards. Policy makers and key stakeholders will debate challenges, visions and possible solutions to ensure a level playing field. As Marc Guiraud, Secretary General of EucoLight, points out: “The Digital economy is a success story. Nevertheless, a recent OECD report indicated though that non-compliance is a growing concern for products sold online. In our experience the lighting sector is particularly vulnerable to free riding as products are small, lightweight, and robust enough to be shipped easily. But, consequences from this problem are widespread and rules for product safety, environmental regulations, tax compliance and internal market regulations are affected. We have therefore invited representatives from various sectors and institutions to present.” Nigel Harvey, Recolight CEO and Vice President of EucoLight added “Recolight have drawn attention to the large scale online WEEE freeriding detected in the lighting sector. And although that is of profound significance to all legitimate operators in the WEEE industry, the problem is far wider. Consumers seem to be offered products that do not comply with safety or environmental standards, and on which VAT is not paid, on an unprecedented scale. I am delighted to be speaking at the workshop and look forward to hearing from legislators on actions being planned.” The agenda and registration details for the event can be found on the EucoLight website
