THE WHAT? The European Commission has fined Alibaba-owned AliExpress €550 million (US$629 million) for failing to adequately prevent the sale of illegal, unsafe and counterfeit products on its marketplace under the Digital Services Act (DSA).
THE DETAILS The Commission concluded that AliExpress had failed to properly assess and mitigate the risks associated with illegal products, including counterfeit goods, unsafe toys and dangerous cosmetics. Regulators also found shortcomings in the platform’s product moderation, advertising and recommendation systems, as well as weaknesses in its brand authorisation programme and enforcement against repeat offenders. AliExpress has said it will appeal the decision, arguing that it has implemented significant improvements to its risk management framework. The company has until October to propose additional remedial measures or face further regulatory action.
THE WHY? The ruling reinforces the EU’s tougher enforcement of online marketplace regulations and increases pressure on e-commerce platforms to strengthen product safety, anti-counterfeiting measures and marketplace governance, with significant implications for beauty and cosmetics brands selling through third-party platforms.
Source: Reuters
