DIN Consumer Council

2024-01-30

Consumers wish for clear labelling for online marketplaces – study by the DIN Consumer Council: “Online marketplaces from the consumers’ perspective: problems, barriers and solutions”

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Online shopping has long ceased to be attractive only to digital natives. In 2022, 91 per cent of Germans placed orders online (Bitkom study 2022, in German). Are you always aware of whether the online retailer is a marketplace or a purely online shop? No – was the finding of the newest study ‘Online marketplaces from a consumer perspective: problems, barriers and solutions’, which was carried out on behalf of the DIN Consumer Council by ConPolicy – Institute for Consumer Policy – and published in December 2023.

The survey showed that consumers often do not know whether an online retailer is a marketplace or a standalone online shop. For example, only around 10 % of respondents knew that Douglas, Decathlon and H&M are online marketplaces. In the case of the marketplace provider Amazon, however, over 50 % of respondents were certain. What is concerning is that the majority of consumers surveyed do not have a clear understanding of the division of responsibility between online marketplaces and third-party sellers, and generally overestimate their own knowledge of these characteristics. Fewer than half of those surveyed answered the question about the roles of online marketplaces and third-party sellers correctly. Only 26 % correctly stated that the third-party seller becomes the customer’s contractual partner once the sales contract is reached. Furthermore, only 18 % are aware that third-party retailers must ensure that the products they sell comply with legal requirements. 88 % of survey respondents would like to see clear labelling on websites that sell products from third-party sellers, and expect online marketplaces to take responsibility both in terms of the transparency of their business model and in preventing unethical business practices. Consumers encounter various problems when making transactions via online marketplaces, with the quality of the products delivered, the protection of consumer interests and customer service provided by online marketplaces and third-party sellers being the main concerns.

In addition to the online survey and a comprehensive literature review, recommendations for consumer policy and standardisation were formulated.

Recommendations for action for consumer policy:

  • Before making a decision for purchase, consumers should be clearly informed that it is not the online marketplace but the third-party retailer who is the contracting party and, as such, the party to whom any right of withdrawal or warranty claims should be addressed.
  • From the consumer’s point of view, it makes sense for online marketplaces to have a general fallback liability that applies whenever consumers suffer harm in the course of transactions facilitated by the marketplace with third-party traders, and whenever the third-party trader cannot be held liable.

Recommendations for action for consumer-oriented standardisation

  • Standardisation can help to clarify the terminology used in relation to online marketplaces, ensure clear communication regarding the division of responsibilities between online marketplaces and consumers, and define in greater detail the design and inspection obligations of online marketplaces – either through specific standards for online marketplaces or by amending the general standards for online trade.

The research study can be downloaded and used free of charge.

The German Federal Ministry for Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) and the DIN Consumer Council released a joint press statement on the 03.01.2024 on this topic (Press statement in German).

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