Shopify, a multinational e-commerce company, has agreed to implement adjustments to its platform related to shopper safety and the fight against fake products.
Regulatory intervention in the European Union was prompted by a number of complaints, said the Commission in a statement released on Friday, Oct. 7.
The Increasing Number of Complaints
According to the EU, the number of complaints regarding the B2B e-commerce platform increased during the COVID-19 pandemic. These complaints centered around online shops accused of engaging in illegal activities like "making fake offers and fake scarcity claims, supplying counterfeit goods, and not providing their contact details."
Justice Commissioner Didier Reynders stated in the press release that 75% of internet users are making purchases online, so swindlers and dishonest merchants have a lot of potential victims on this platform. Thus, this initiative is paramount to be implemented.
"We welcome Shopify's commitment to ensure that traders operating on its platform are aware of their responsibilities under EU law, and are taken down if they break the rules," Reynders remarked.
Related Article: Shopify to Complete Acquisition of Ecommerce Fulfillment Startup Deliver in $2.1 Billion Deal
Upcoming Changes in the Platform
As per TechCrunch's report, the modifications that were agreed upon include a commitment to creating a quick and effective "notice and action" system for national consumer authorities to report problems that they identify, as well as an agreement to update its templates to encourage merchants to be more honest with customers.
It is reported that Shopify will shut down stores at the EU consumer protection authorities' request and disclose relevant company facts to the regulators.
As for its templates, the EU stated that Shopify decided to include fields for firm information and contact details in its Terms and Conditions, Privacy Policy, and Refund Policy generators for online stores.
The company committed to providing merchants with unambiguous instructions on how to comply with EU consumer law, to be specific.
Additionally, national consumer authorities are opting to strengthen their collaboration with the Canadian Competition Bureau against Shopify merchants who are not based in the EU or European Economic Area (EEA). This will be done in an effort to combat merchant fraud.
What Happens Next
With all this, the Consumer Protection Cooperation Network (CPC) will be responsible for keeping a close eye on the execution of these commitments and any further complaints that customers lodge.
Efforts may also be taken on a national level to ensure that EU standards are adhered to and that all platforms follow the same set of norms.
EU and Amazon
In July, the EU also filed a directive to another e-commerce company. The Commission directed Amazon to streamline the procedure for canceling its Prime membership subscription service on its sites, both on desktop and mobile devices.
Amazon agreed to change its complex canceling process for Prime after complaints were made in April 2021.
TechCrunch reported that Amazon started to make some revisions to the Prime web interface, such as labeling the cancel button with clearer text and shortening the explanatory wordings.
Related Article: EU Forces Amazon to Change Prime Service Cancelation by Being Able to Quit in Just Two Clicks
This article is owned by Tech Times
Written by Trisha Kae Andrada
