The European Commission has launched an investigation into whether Chinese e-commerce company AliExpress sells illegal products such as fake drugs and pornography

REUTERS

The European Commission issued a press release saying AliExpress does not strictly adhere to consumer terms and conditions that prohibit products harmful to consumer health, such as fake medicines and health supplements, and has begun investigating whether they violate the Digital Services Act (DSA). The terms and conditions mentioned regarding consumer protection also include a ban on products that are particularly harmful to minors, such as pornography.

The EU has pointed out the lack of effective mechanisms to prevent manipulation and promotion of illegal products through ‘hidden links’ and ‘affiliation programs’.

An EU official told Reuters, “We have not yet discovered AliExpress’s violation of the law. We are just doubting if there are elements that the company does not follow.” AliExpress said it respects both the relevant regulations and laws in the market it operates in.

The commission said it will continue collecting evidence by requesting additional information, saying it will start official procedures based on preliminary investigations such as AliExpress’ answers to questions sent in November last year and January this year. AliExpress has 104.3 million monthly active users in the EU as of April last year. It is designated as a VLOP according to the DSA.

The EU introduced the DSA in August last year to prevent online false information and harmful content. Since July 17, the EU has expanded its regulations to most online platforms except for some small and medium-sized companies. “The DSA is a law designed to eliminate not only hate speech, false information, and cyberbullying but also illegal or unsafe products sold on e-commerce platforms,” said EU Commissioner for Domestic Market Thierry Breton. “Al-Express should strictly comply with the DSA and take measures against products that are dangerous to consumer health and minors.”

JULIE KIM

US ASIA JOURNAL

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