Europe Slams AliExpress Over Consumer Protection Failures

BRUSSELS, 2025-06-19 07:26:00

AliExpress Faces EU Scrutiny Over Illegal Product Sales

The European Commission is cracking down on AliExpress for failing to properly address the sale of illegal products on its platform.

• AliExpress is being investigated for inadequate risk assessment regarding illegal products.
• The company has failed to properly enforce penalties for traders selling illicit goods.
• Proactive content moderation systems on AliExpress have shown systemic failures.

The European Commission (EC) has found that Chinese e-tail giant AliExpress is not doing enough to prevent the sale of illegal products on its platform, violating the Digital Services Act (DSA). A Wednesday proclamation revealed the findings of an investigation opened in March 2024. the investigation highlighted several key areas where AliExpress fell short in its responsibilities.

What’s the issue with AliExpress, and what’s the EU doing about it? The EC steadfast AliExpress is failing to adequately assess and mitigate risks associated with illegal products, leading to potential penalties of up to six percent of its global annual turnover.

Risk Assessment Failures

The EC’s investigation found that AliExpress’s risk assessment process doesn’t adequately consider the limited resources dedicated to moderating content. This oversight leads to an underestimation of the risks associated with the dissemination of illegal products.

Enforcement and Moderation Issues

AliExpress was also found to be lax in enforcing its penalty policies against traders who repeatedly post illegal content. Furthermore, the platform’s proactive content moderation systems have systemic failures, making them less effective and vulnerable to manipulation by malicious traders.

AliExpress’s Response

in response to the findings, AliExpress has committed to improving its processes and tools to “monitor and detect illegal products, such as medicines, food supplements, and adult material.” The company will pay special attention to “hidden links and affiliate programmes” and work to enhance the traceability of third-party traders on its sites.

The company also plans to improve the transparency of its advertising and recommender systems, including the ads repository and the personalization options offered to users. Additionally, the EU has convinced AliExpress to provide data for researchers.

The EC will closely monitor AliExpress to ensure compliance with its promises.Failure to meet thes obligations could result in notable fines under the DSA.

Did you know? The Digital Services Act aims to create a safer digital space where essential rights of users are protected and a level playing field for businesses is ensured.

Challenges Ahead for AliExpress

These findings come at a challenging time for AliExpress and its parent company, Alibaba Group, as their international e-commerce operations are reportedly losing money. Furthermore, the United States’ tariff policies have made products sold on AliExpress more expensive in the U.S. market, which may limit sales and profit growth.

Reader question: How might increased tariffs in other countries impact AliExpress’s long-term business strategy?

Additionally, AliExpress is hoping to engage more European merchants with business models tailored to local needs. However, whether these merchants will want to partner with an organization facing safety concerns remains to be seen.

Did you know?– The DSA applies to all online platforms operating in the EU, regardless of where they are based.

Alibaba also needs to navigate the expectations of the Chinese government, which has encouraged Chinese e-commerce businesses to expand their operations in overseas markets.

BRUSSELS, 2025-06-19 07:26:00

AliExpress Faces EU Scrutiny Over Illegal Product Sales

The European Commission is cracking down on AliExpress for failing to properly address the sale of illegal products on it’s platform.

• AliExpress is being investigated for inadequate risk assessment regarding illegal products.
• The company has failed to properly enforce penalties for traders selling illicit goods.
• Proactive content moderation systems on AliExpress have shown systemic failures.

The European Commission (EC) has found that Chinese e-tail giant AliExpress is not doing enough to prevent the sale of illegal products on its platform, violating the Digital Services Act (DSA). A Wednesday proclamation revealed the findings of an inquiry opened in March 2024. the investigation highlighted several key areas where aliexpress fell short in its responsibilities.

What’s the issue with AliExpress, and what’s the EU doing about it? The EC steadfast AliExpress is failing to adequately assess and mitigate risks associated with illegal products, leading to potential penalties of up to six percent of its global annual turnover.

Risk Assessment failures

The EC’s investigation found that AliExpress’s risk assessment process doesn’t adequately consider the limited resources dedicated to moderating content. This oversight leads to an underestimation of the risks associated with the dissemination of illegal products.

Enforcement and Moderation Issues

AliExpress was also found to be lax in enforcing its penalty policies against traders who repeatedly post illegal content.Moreover, the platform’s proactive content moderation systems have systemic failures, making them less effective and vulnerable to manipulation by malicious traders.

AliExpress’s Response

in response to the findings, aliexpress has committed to improving its processes and tools to “monitor and detect illegal products, such as medicines, food supplements, and adult material.” The company will pay special attention to “hidden links and affiliate programmes” and work to enhance the traceability of third-party traders on its sites.

The company also plans to improve the transparency of its advertising and recommender systems, including the ads repository and the personalization options offered to users. Additionally, the EU has convinced AliExpress to provide data for researchers.

The EC will closely monitor AliExpress to ensure compliance with its promises.Failure to meet thes obligations could result in notable fines under the DSA.

Did you know? The Digital Services Act aims to create a safer digital space where essential rights of users are protected and a level playing field for businesses is ensured.

Challenges Ahead for aliexpress

These findings come at a challenging time for AliExpress and its parent company, Alibaba Group, as their international e-commerce operations are reportedly losing money.Furthermore, the United States’ tariff policies have made products sold on AliExpress more expensive in the U.S. market, which may limit sales and profit growth.

Reader question: How might increased tariffs in other countries impact AliExpress’s long-term business strategy?

Additionally, AliExpress is hoping to engage more European merchants with business models tailored to local needs. Though, whether these merchants will want to partner with an organization facing safety concerns remains to be seen.

Did you know?– The DSA applies to all online platforms operating in the EU, regardless of where they are based.

Alibaba also needs to navigate the expectations of the Chinese government, which has encouraged Chinese e-commerce businesses to expand their operations in overseas markets.

The Broader Implications of the EU’s AliExpress Probe

The EU’s investigation into AliExpress sends a clear message about the enforcement of the Digital Services Act: platforms must take responsibility for the content and products sold on their sites. This scrutiny extends to the safety and legality of goods, impacting consumer trust and market dynamics.

This case underscores the importance of proactive content moderation and robust enforcement mechanisms. It affects not just AliExpress, but also other e-commerce platforms operating in the EU, such as Amazon and eBay.

Impact on Consumers

The EU’s probe puts the spotlight on the risks consumers face when purchasing online. Counterfeit goods,unsafe products,and items that violate intellectual property rights are an ongoing issue in the e-commerce world. By stepping up enforcement,the EU aims to protect consumers from these dangers.

• Product Safety: The investigation aims to ensure that products sold on AliExpress and other platforms meet EU safety standards. This includes ensuring that products comply with regulations related to health, safety, and the surroundings.
• Consumer Rights: The DSA protects consumers’ rights by ensuring clear information,fair terms of service,and accessible complaint mechanisms.
• Trust and Confidence: Increased enforcement can restore consumer trust, making them more confident in buying from online platforms.

The outcome potentially impacts not only the availability of specific products but also the overall consumer experience. By addressing these issues, EU regulators aim to create a safer and more reliable online shopping environment.

How much could AliExpress be fined? AliExpress could face fines up to six percent of its global annual turnover if found to have violated the DSA. This significant penalty reflects the seriousness with which the EU views compliance with its digital regulations.

Impact on Small and Medium-Sized Enterprises (SMEs)

The EU’s actions could have an indirect impact on the business models of SMEs that use AliExpress to reach customers. Stricter regulations and monitoring may increase costs for traders on the platform, which could possibly affect their profit margins or ability to compete.

• Compliance Costs: SMEs may face increased costs related to ensuring their products meet EU standards.
• Transparency and Trust: Platforms enforcing stricter rules could enhance consumer perception of the entire marketplace, which could benefit compliant SMEs.

Tip: Ensure that your products on any e-commerce platform fully comply with all relevant EU regulations to minimize risk and maintain consumer trust.

The Future of E-commerce in Europe

The EU’s enforcement actions against AliExpress reflect a broader trend: the increasing regulation of digital platforms. Several policy changes are coming that could change the ways various e-commerce sites function.

By clarifying the requirements for a well-functioning marketplace, the EU is striving to create a safer, more transparent digital environment for both consumers and businesses. This focus on consumer protection and market fairness is expected to shape the future of e-commerce across Europe.

Key takeaways: The EU’s investigation into AliExpress highlights the meaning of content moderation, product safety, and consumer rights in e-commerce. Platforms and traders must adapt to evolving regulations to thrive in the European market.

What’s next? The European Commission will keep a close eye on AliExpress to ensure compliance,which includes its commitments to improve processes and tools for detecting illegal products. AliExpress may also face more investigations into the future.

Frequently Asked Questions

1. What is the Digital Services Act (DSA)? The DSA is a comprehensive set of rules for online platforms that aims to create a safer digital space for users and a level playing field for businesses. It covers areas such as content moderation, product safety, and transparency.

2. What types of products are considered illegal under the DSA? Illegal products can include counterfeit goods, unsafe products, items that violate intellectual property rights, and anything that violates EU laws regarding health, safety, and environmental protection.

3. What will happen if AliExpress fails to comply with the DSA? Failure to comply with the DSA can result in fines of up to six percent of aliexpress’s global annual turnover. Additionally, the EC could take other enforcement actions, leading to additional regulatory constraints.

4. How does the DSA affect consumers? The DSA protects consumers by ensuring clear information, fair terms of service, and accessible complaint mechanisms. It