Transparency in online marketplaces
Are you running an online marketplace or selling products on an online marketplace? There is now a specific obligation to disclose the seller’s professional identity to consumers on online marketplaces.
The providers of online marketplaces must inform the consumers about the status of the sellers who offer goods and services on online marketplaces. Consumers need to know whether they are dealing with a trader or a private individual. This is important as the status of the seller determines whether the consumers are protected by EU consumer protection legislation or not. EU consumer rights such as the right of withdrawal and legal guarantee only apply to consumer contracts with traders.
Many online marketplaces offer their own products in addition to third parties’ products. Some marketplaces only host traders, while others have a mix of offers from private individuals and traders, or only facilitate sales between individuals. Don’t leave your customers guessing! It should always be clear to consumers who is offering the goods or the services.
Consumers must also be informed about the division of responsibilities between the traders (third-party sellers) and the online marketplace regarding the performance of the contract, e.g. who is responsible for the delivery and handling of the consumer’s possible withdrawal from the contract.
Your online marketplace gives consumers the possibility to buy products offered by traders or by individual sellers, who are not traders. You have to request each seller to state their status (trader or non-trader) and pass this information to the consumers when they look at the offers of that seller. Where the seller declares to be a private individual, you must also warn the consumer that EU consumer protection legislation does not apply to the contract. This information is necessary to ensure that your customers know whether they are entitled, for example, to the right of withdrawal or to the legal guarantee that only traders must provide under EU consumer law.
Read more about this policy and how to apply it in practice in the European Commission Notices: Guidance on the interpretation and application of the Unfair Commercial Practices Directive (section 4.2.1. “Online platforms and their commercial practices” and section 4.2.2. “Intermediation of consumer contracts with third parties”), and Guidance on the interpretation and application of the Consumer Rights Directive (section 3.4. “Additional requirements for online marketplaces”).