On Product safety and regulatory compliance in e-commerce and non-EU imports

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on product safety and regulatory compliance in e-commerce and non-EU imports

(2025/2037(INI))

– having regard to the report of 31 March 2022 by the Wise Persons Group on the Reform of the EU Customs Union entitled ‘Putting More Union in the European Customs: Ten proposals to make the EU Customs Union fit for a Geopolitical Europe’,

– having regard to its position of 13 March 2024 on the proposal for a regulation of the European Parliament and of the Council establishing the Union Customs Code and the European Union Customs Authority, and repealing Regulation (EU) No 952/2013,

– having regard to the Commission communication of 5 February 2025 entitled ‘A comprehensive EU toolbox for safe and sustainable e-commerce’,

– having regard to Rule 55 of its Rules of Procedure,

– having regard to the opinion of the Committee on International Trade,

– having regard to the report of the Committee on the Internal Market and Consumer Protection (A10-0000/2025),

A. whereas e-commerce has transformed how consumers purchase and engage with businesses worldwide, unlocking unprecedented opportunities; whereas it also presents significant challenges to the EU’s competitiveness and raises concerns over consumer health and safety;

B. whereas, with the surge in e-commerce imports, non-compliant sellers evading regulatory costs and undermining law-abiding businesses through means such as counterfeiting, have intensified the unfair competition and there is an urgent need to re-establish a level playing field for all businesses;

C. whereas Commission President Ursula von der Leyen, in her 2024-2029 political guidelines, referred to the need to tackle challenges with online platforms to ensure that consumers and businesses alike benefit from a level playing field based on effective customs, tax and safety controls and sustainability standards, and tasked several Executive Vice-Presidents and Commissioners with fulfilling that mission;

D. whereas the process of adapting the EU acquis to the online environment began several years ago, and numerous laws on products, consumer protection and product safety now include provisions to ensure robust safeguards in the digital landscape;

E. whereas the Digital Services Act (DSA), the General Product Safety Regulation (GPSR), the Market Surveillance Regulation (MSR) and the Consumer Protection Cooperation Regulation (CPC) have contributed to a safer and fair e-commerce environment; whereas, despite these laws, consumer and other organisations, as well as national authorities, have raised concerns over the large number of unsafe products detected in the EU that fail to comply with EU legislation on product safety and environmental and chemical standards;

F. whereas concerns over the suitability of customs procedures under the current Union Customs Code for e-commerce were a significant driver of the Commission’s customs reform package, including the legislative proposals on the revision of the Union Customs Code and establishing an EU Customs Authority (UCC reform), and the removal of the EUR 150 exemption threshold (de minimis) for the payment of customs duties and VAT on imported products;

G. whereas the Commission communication of 5 February 2025 on a comprehensive EU toolbox for safe and sustainable e-commerce, highlights that the volume of e-commerce goods bought by EU consumers on non-EU online platforms is expected to continue growing rapidly, benefiting from the current customs duty exemption for low-value consignments (up to EUR 150);

The surge in non-compliant goods in e-commerce

1. Highlights the increasingly high number of purchases being made by EU consumers on non-EU online platforms in business-to-consumer environments and in emerging manufacturer-to-consumer and direct-to-consumer environments; notes, as described in the Letta report on the future of the single market, that the circulation of harmful products in the single market is on the rise and that EU consumers waste EUR 19.3 billion per year buying dangerous products that can lead to injuries and that are detrimental to our economies;

2. Notes that 4.6 billion e-commerce items under the EUR 150 exemption threshold were imported into the EU in 2024, which corresponds to up to 12 million small e-commerce items per day and is almost twice the number recorded in 2023 (2.4 billion), and more than triple the number in 2022 (1.4 billion);

3. Stresses that most unsafe and illegal products are shipped to the EU in large volumes of individual and often small parcels sold to EU consumers via online platforms from non-EU countries; stresses that such products are difficult to control, in particular for customs authorities at the entry points, which are mostly located at major ports and logistical airports for e-commerce; emphasises that this makes it increasingly difficult for market surveillance authorities to detect and remove such products from the internal market and for consumer authorities to do so once the products reach EU consumers;

E-commerce crossroads: navigating compliance challenges

4. Recognises that the EU has established a robust compliance framework, which also applies to products sold online; underlines, in that respect, the importance of the DSA, the MSR, the GPSR, consumer protection rules and various product and environmental laws; emphasises that market surveillance authorities face challenges in applying these frameworks to online platforms and, in particular, in cases where large quantities of a product are sold in small consignments;

5. Highlights the enforcement gaps caused by the limited resources of customs and market surveillance authorities, the lack of harmonised technological tools across Member States and insufficient data sharing between customs authorities, platforms and market surveillance entities; acknowledges that physical inspections are unavoidably and inherently limited given the volume of e-commerce parcels entering the EU;

6. Considers that EU manufacturers face unfair competition due to non-EU platforms enabling non-EU manufacturers to easily enter the EU market, bypassing applicable regulations and standards; highlights the fact that, while EU manufacturers must comply with strict safety, environmental and quality rules, many low-value products sold through these platforms evade customs and market surveillance checks due to the way they are shipped to the EU; raises concerns that some of these platforms deliberately exploit this loophole, allowing non-compliant imports to enter the EU single market unchecked, putting European manufacturers, wholesalers and retailers at a disadvantage;

7. Stresses that EU manufacturers are de facto subject to significantly stricter market surveillance compared to non-EU manufactures that reach EU consumers via online e-commerce platforms; deeply regrets the loss of market share caused by the influx of cheaper, non-compliant products shipped from non-EU countries;

8. Highlights the difference between online platforms acting as intermediaries and those acting as importers; notes, in particular, that the EU e-commerce platforms that act as importers face compliance costs that increase their retail prices by approximately 40 %;

9. Emphasises that online marketplaces are requested to trace their traders (‘know your business customer’) under the DSA, which should discourage traders from selling unsafe or counterfeit goods; notes, however, the rise in new selling practices via social media platforms, where this obligation is not effectively applied, allowing non-EU sellers to offer non-compliant goods to EU users directly;

10. Highlights the fact that the information of a responsible economic operator in the EU under the GPSR, acting on behalf of a non-EU trader or platform, is often wrong or missing; considers that, in such cases, the enforcement of EU law becomes difficult for national surveillance authorities, in particular with non-EU traders that offer their products to EU consumers via non-EU online platforms;

11. Supports the opening of investigations brought forward by consumer authorities in the EU, as part of the CPC network, as well as under the DSA, against non-EU online platforms and calls for their swift conclusion; underlines that the implementation of commitments received from online platforms should be closely monitored;

Strong enforcement policies to combat non-compliant e-commerce products

Urgent need for short-term measures

12. Urges the Member States to increase funding and resources for market surveillance authorities and customs authorities so that they can better cope with the challenges related to unsafe and illicit products; asks the Commission to support the cooperation between market surveillance and customs authorities and stresses that cooperation across different sectors should be improved;

13. Welcomes the Commission’s intention to coordinate the control of customs and market surveillance authorities under priority control areas focused on products from non-EU countries that pose significant safety hazards and a risk of non-compliance; calls on the Commission to strengthen cooperation within the EU Product Compliance Network and to increase EU funding for customs cooperation under the customs programme; points out to the Commission that, in addition to existing testing facilities for toys and radio equipment, more testing facilities for e-commerce goods are urgently needed, such as for batteries, textiles and other products; asks the Commission and the Member States to increase investments in equipment for the detection of unsafe and illegal goods;

14. Highlights the fact that, under the GPSR, if the providers of online marketplaces have any product safety issues, they are obliged to establish a single point of contact, register with the Safety Gate Portal and indicate the information concerning their single contact point on the portal; asks the Commission to effectively enforce this and other obligations of online marketplaces and to support the Member States’ market surveillance authorities in implementing the GPSR and the MSR;

15. Emphasises that the swift implementation of the Digital Product Passport (DPP) for several critical products sold online is essential to strengthen the enforcement of existing legislation; urges the Commission to present the necessary secondary legislation on the DPP as soon as possible, in particular for textiles; calls on the Commission to continuously assess the requirements, technical design and operation of the DPP under the Ecodesign for Sustainable Products Regulation (ESPR) as a priority;

16. Proposes a mandatory DPP with early compliance verification for all products imported via e-commerce, including detailed quality and compliance data, to be integrated directly into the EU customs data hub, allowing authorities to pre-screen information on products before they are placed on the single market; believes that products without clear origin details and compliance verification should be automatically blocked from being listed on online marketplaces;

17. Urges the Member States to make substantial efforts to increase customs controls and improve risk analysis, as the detection and removal of non-compliant goods can significantly reduce the harm to EU consumers and protect the economic interests of EU businesses;

18. Considers that the evaluation report on the interaction of the DSA with other legal acts, which is due on 17 November 2025, should take into account different legislation, in particular on the obligations of online marketplaces and possible future improvements; calls on the Commission to evaluate the need to align the sectoral legislation with the fiscal and non-fiscal obligations of deemed importers for goods imported from a non-EU country and to outline the differences in their application, thus ensuring legal predictability;

19. Points out that the Member States should make better use of the available sets of penalties and sanctions against economic operators, as well as other available interim measures, to dissuade economic operators from infringing upon the applicable legislation, in order to create a deterrent effect;

Need for regulatory reforms

20. Calls for the removal of barriers to enforcing consumer rights, such as legal warranty claims and the right to return items; calls on the Commission, in the context of the review of the CPC Regulation, to provide for clear measures to further strengthen EU consumer law enforcement, including enforcement powers over non-EU traders and platforms, better coordination of EU and national actions and the exchange of information among authorities;

21. Notes that enforcement in the Member States is fragmented, which leads to inefficiencies; calls for better coordination of enforcement and compliance oversight and for a more uniform application of the EU acquis;

22. Supports the Commission’s ambition to swiftly advance the upcoming interinstitutional negotiations with Parliament and the Council on the UCC reform and the two proposals for Council acts on removing the exemption threshold on customs duties for goods valued under EUR 150; urges, therefore, the Member States to accelerate the negotiation procedure in the Council, recognising the urgency of the customs reform for EU competitiveness and the protection of EU consumers;

23. Stresses that the UCC reform will provide the necessary tools for customs authorities to better supervise and control the goods entering the EU, contribute to strengthening the single market and customs union, improve the detection of unsafe and illicit products and contribute to a level playing field among economic operators;

24. Highlights the fact that the concept of a ‘deemed importer’ aims to ensure a level playing field for both EU and non-EU online platforms; notes that this measure would relieve customers of non-EU online platforms from being considered importers, as they are under the current UCC, as, in the context of an online sale from outside the EU, an economic operator would be considered the importer and would assume the corresponding fiscal and non-fiscal responsibilities; requests that customers whose purchases are blocked by customs due to non-compliance receive financial compensation from the e-commerce platform acting as the deemed importer for non-delivery;

25. Raises concerns over the voluntary application of the Import One-Stop Shop (IOSS) regime for online marketplaces, which is contrary to the initial VAT in the digital age proposals; stresses, therefore, that online marketplaces that are not using the IOSS should also be considered deemed importers in order to ensure the fulfilment of their fiscal and non-fiscal obligations and effectively address the challenges in e-commerce;

26. Calls for the establishment of a new EU Customs Authority, if possible in 2026, to provide expert support to the Member States’ customs authorities; notes that the new EU customs data hub will allow for enhanced cooperation between the EU Customs Authority and customs and other authorities through data exchange and the interoperability of national IT systems, and thus facilitate coordinated controls and the detection of non-compliant products; considers that it is essential to fully integrate the functionalities of the Customs Single Window into the EU customs data hub;

27. Stresses that, given the urgency, the entry into force of different obligations planned in the UCC revision should be accelerated, such as the establishment of the EU customs data hub; calls on the Commission to immediately start the preparatory work necessary for the establishment of the EU customs data hub, so as to speed up the preparation of its e-commerce functions in 2026;

28. Encourages the idea of e-commerce items being shipped to the EU in bulk and, in turn, the establishment of warehouses in the EU by online platforms for such goods before they are put into parcels for delivery to customers; recognises that such shipments of e-commerce items in bulk and their storage in warehouses in the EU would increase the oversight of customs and market surveillance authorities and improve their controls and detection of non-compliant goods; asks the Commission and the Member States to consider all possible options, including simplifying the status of a trust and check trader if a warehouse in the EU is established;

29. Underlines that the Commission’s proposal to introduce a non-discriminatory handling fee on e-commerce items, charged by customs authorities to online platforms on items imported directly to consumers in the EU, could partially cover the increased administrative costs of customs and other authorities, particularly when the products are shipped in small individual parcels; welcomes the fact that this handling fee would be incurred by the online retailer or online marketplace and not by the consumer; considers that the handling fee on e-commerce items should only apply if items are not shipped in bulk and not warehoused in the EU;

30. Supports the minimum harmonisation of infringements and non-criminal sanctions for non-compliance across the Member States; stresses that this should not entail setting exact harmonised penalty levels in all Member States, since each country has a different legal system, but rather a common framework for minimum harmonisation to close existing loopholes and thus tackle the e-commerce challenges;

Additional enforcement actions

31. Calls on the Commission to strongly enforce the DSA with regard to the responsibility of online marketplaces, in particular their ‘know your business customer’ obligation that should dissuade non-compliant sellers from offering their products in the EU through marketplaces, and to provide practical support in tracing traders that do not abide by EU rules; suggests that online marketplace sellers must provide a reshipping address and contact point within the EU to allow consumers to easily return non-compliant goods without undue costs and to allow authorities to inspect goods; believes that online marketplaces should be responsible for checking this and held accountable for enforcement;

32. Stresses that the enhancement of cooperation and coordination with national competent authorities is crucial; stresses that, under the DSA, the investigative actions against non-compliant non-EU online marketplaces need to yield results in order to prevent certain producers or sellers from selling non-compliant products and to ensure that such products are no longer offered to EU consumers;

33. Notes that postal and other delivery services are undergoing significant transformations due to the rapid growth of e-commerce; raises concerns that the reform of the Universal Postal Union’s terminal dues system allows for country-by-country negotiations of postal rates; notes that, as a result, shipping e-commerce goods from China to Europe remains more cost-effective than delivering similar goods within Europe, leading to deeper fragmentation of the single market for postal services; urges the Commission to evaluate the impact of e-commerce on postal services and the internal market, and to consider how it could support market surveillance and customs authorities;

Increased use of IT solutions

34. Welcomes the fact that the Commission is preparing a project to streamline existing databases, including the EU Safety Gate and the Customs Risk Management System, into a common interoperable system and to ensure interoperability with the DPP;

35. Supports the Commission’s aim to provide market surveillance authorities with the e-Surveillance WebCrawler tool to flag reappearing dangerous products; asks the Commission to make available another web crawler for detecting new listings as soon as possible;

36. Supports the use, at national level, of artificial intelligence, blockchain and the internet of things for scanning and analysing product listings on e-commerce platforms, automating customs and market surveillance inspections and risk profiling and integrating product compliance databases for real-time checks; notes, however, that the high implementation costs of these technologies remain a barrier, especially for low-value goods and that the high volume of parcels containing many different items limits practical inspection capabilities;

37. Demands that the Commission and the Member States exchange best practices and find incentives to provide the necessary funding and support for national authorities in order to increase the use of technological solutions; suggests that artificial intelligence, blockchain and the internet of things could be used to scan and analyse product listings on e-commerce platforms, automate inspections and risk profiling, and integrate product compliance databases for real-time checks by several authorities;

38. Recognises that some online marketplaces also use a number of IT tools to detect and remove unsafe and illicit products that are found on their platforms; highlights, however, the fact that online marketplaces need to further invest in and increase their use of these IT tools to effectively avoid the offer and sale of unsafe and illicit products; calls on the Commission to further incentivise the use of IT tools by online marketplaces in this regard;

Improvement of consumer awareness and information

39. Emphasises that EU consumers are not adequately informed about the possible dangers of potentially unsafe products and the harm they can cause; notes that there is demand for cheaper products among EU consumers, which are purchased on non-EU online marketplaces due to their much lower production costs and uncompetitive conditions for EU businesses and online platforms;

40. Asks the Commission to strictly enforce the ecodesign requirements for textiles and other products under the ESPR and to make sure that consumers are better informed about sustainability aspects, such as environmental impacts, energy use, repairability or durability of products purchased on online marketplaces;

41. Considers that consumer authorities and organisations should conduct more awareness-raising campaigns on consumer rights, potential risks and redress mechanisms when purchasing online, in particular on non-EU online platforms;

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42. Instructs its President to forward this resolution to the Council and the Commission.

EXPLANATORY STATEMENT

Introduction

The rapid growth of e-commerce has revolutionised market accessibility across the European Union, but it has also highlighted significant regulatory challenges. As more goods are sold online, particularly from third countries, issues surrounding customs, taxation, product safety, and fair competition have become more pressing. The growing volume of non-compliant goods entering the market poses serious risks to consumer safety and the fairness of competition, undermining EU standards. This draft report outlines the key challenges facing the e-commerce sector and proposes measures to close regulatory gaps, ensuring a safer and fairer marketplace for businesses and consumers alike.

Key Challenges

One of the primary concerns in the EU e-commerce landscape is the increasing volume of unsafe and illicit products. The number of small shipments into the EU has surged dramatically, with over 4.6 billion parcels arriving in 2024 alone. Many of these goods, often shipped from outside the EU, bypass necessary compliance checks, putting consumers at risk and undermining market integrity.

Although the EU has implemented a comprehensive compliance framework, including legislation such as the Digital Services Act (DSA) and the Market Surveillance Regulation (MSR), and the General Product Safety Regulation (GPSR), enforcement remains difficult. Customs and market surveillance authorities are struggling to cope with the overwhelming volume of small shipments, and inconsistencies in resources, data sharing, and technology hinder their ability to effectively regulate online sales.

EU businesses also face unfair competition. While EU-based manufacturers are subject to stringent safety and environmental regulations, many third country sellers avoid these rules, creating an uneven playing field. This leads to a loss of market share for EU producers, as non-EU products flood the market without adhering to the same standards.

Further complicating the situation are regulatory loopholes that allow non-EU online platforms to bypass compliance, leaving the burden of ensuring product safety largely on EU e-commerce platforms. This situation continues to allow unsafe and illegal goods to enter the EU market unchecked.

Urgency for short-term measures

To address the regulatory challenges in the e-commerce sector, several key proposals have been put forward. First, there is a need for increased resources for customs and market surveillance authorities. These agencies must be adequately funded to handle the growing volume of non-compliant goods and better enforce EU regulations.

Collaboration among national market surveillance and customs authorities must be enhanced to address the regulatory gaps that currently exist. This cooperation will be essential in closing the enforcement gaps that allow unsafe goods to enter the market.

The establishment of additional testing facilities for e-commerce products would improve compliance with safety regulations, particularly for high-risk goods such as batteries and textiles. These facilities will help ensure that products meet safety standards before they enter the EU market.

The introduction of a Digital Product Passport (DPP) would allow for better tracking of e-commerce goods and ensure compliance information is available for pre-screening, particularly for high-risk products. This would help identify non-compliant goods before they enter the single market.

Member States should better utilise existing penalties and sanctions to deter economic operators from violating legislation. The draft report supports minimum harmonisation of infringements and non-criminal sanctions across the EU to close regulatory gaps and address e-commerce challenges effectively, but stresses that exact penalty levels should not be standardised due to varying legal frameworks of Member States.

Need for Regulatory Reforms

The revision of the EU Customs Code is essential to better manage e-commerce imports. The draft report supports the Commission’s push for swift negotiations with the Parliament and Council, recognising the need for timely customs reform to enhance EU competitiveness and consumer protection.

The establishment of a new EU Customs Authority and the EU Customs Data Hub will enhance coordination and provide vital support to national authorities in managing e-commerce-related imports. This initiative will equip customs authorities with the necessary tools to effectively monitor goods entering the EU, improving overall market oversight.

A key reform is removing the customs duty exemption for goods under EUR 150, which will enhance consumer protection and boost EU competitiveness.

Equally important is the ‘deemed importer’ concept, which holds economic operators accountable for the compliance of goods sold online from outside the EU. This ensures all e-commerce actors meet product safety standards and that platforms offering non-compliant goods are responsible for customs-related issues, further safeguarding consumers.

The draft report also stresses the importance of simplifying and aligning the ‘deemed importer’ concept with existing legislation to ensure greater clarity and effectiveness.

Leveraging Technology for Enhanced Enforcement

The integration of advanced technologies such as AI, blockchain, and IoT is essential for improving e-commerce regulation and market surveillance. These technologies can enhance the ability of customs and market surveillance authorities to monitor product listings, automate inspections, and perform risk assessments. However, the high costs of implementing such technologies, especially for low value goods, remain a barrier. Overcoming these challenges will be critical to improving the effectiveness of compliance checks without overburdening businesses.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he received input from the following entities or persons in the preparation of the draft report:

Entity and/or person

BEUC - The European Consumer Organisation

Ecommerce Europe

Amazon

Lighting Europe

Adevinta

Orgalim

Wolt

Nordic Commerce Coalition

Shein

Toy Industries Of Europe

EuroCommerce

Allegro

Together Against Counterfeiting (TAC) Alliance

Geopost

Alibaba

Directorate-General for Economic Inspection of Belgian FPS Economy (CPC network)

Market surveillance of Baden-Württemberg Ministry of Environment, Climate and Energy

Permanent Representation of the Netherlands to the EU

European Express Association

Markenverband e.V

EBay

European Tech Alliance

Cdiscount

European Commission (DG GROW, DG TAXUD, DG CNECT, DG JUST)

Cabinet of Commissioner Maroš Šefčovič

Cabinet of Executive Vice President Henna Virkkunen

The list above is drawn up under the exclusive responsibility of the rapporteur.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that he has submitted to the natural persons concerned the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.