E-commerce has revolutionized global retail, offering both opportunities and challenges for businesses and consumers alike. However, the increasing volume of direct-to-consumer imports within the European Union (EU) has highlighted significant legal, environmental, and market fairness challenges. To address these concerns, the European Commission has published a comprehensive communication titled “A Comprehensive EU Toolbox for Safe and Sustainable E-Commerce.”[1] This strategic document lays out a series of initiatives aimed at mitigating emerging risks, ensuring that the EU’s e-commerce sector remains both competitive and compliant with European laws. These initiatives are part of the European Commission’s goals for the 2024-2029 term, and complement ongoing investigations, including a recently launched inquiry under the Digital Services Act (DSA) into the e-commerce platform Shein, as well as a coordinated investigation by the EU’s Consumer Protection Network into the e-commerce platform Temu.[2]
This blog post provides an overview of the Commission’s communication, with a specific focus on the key legal measures proposed and their implications for businesses, legal professionals, and consumers.
E-Commerce: A Double-Edged Sword
E-commerce has undoubtedly revolutionized retail, enabling consumers to access products from across the globe at the click of a button. In the EU alone, 70% of consumers regularly buy goods online, and 76% of consumers expect online shopping to become even more integral by 2030.[3] This growth, particularly on online marketplaces, has been accompanied by a sharp rise in imports of low-value (below EUR 150) products from non-EU countries, often bypassing traditional regulatory checks. While this has democratized access to goods, it has also posed significant risks to consumers, businesses, and the environment, which will be detailed below.[4]
- Safety and product compliance: The rise of non-compliant and dangerous products in the EU market threatens consumer safety, particularly for vulnerable groups like children. Counterfeit goods, often sold online, bypass regulations and can harm health, from hazardous chemicals in toys to fake medicines. E-commerce also facilitates the distribution of illicit goods, such as drugs and firearms, raising security concerns.
- Environmental impact: E-commerce’s rapid growth has a significant environmental footprint, which is becoming increasingly clear.[5] Low-cost goods often neglect the environmental costs of production, shipping, and disposal. These products, typically of poor quality, create waste, increase carbon emissions, and lack proper recycling or waste management, exacerbating environmental harm.
- Unfair competition: Non-compliant e-commerce sellers, avoiding EU regulations, gain a competitive edge by cutting costs, undermining law-abiding businesses that adhere to product safety and environmental laws.[6] Intellectual property infringement, particularly counterfeiting, also leads to significant losses for industries like fashion and cosmetics, further disadvantaging legitimate companies.
A Holistic Approach: The EU’s Regulatory Response
The Commission’s response to these challenges is both comprehensive and multifaceted, acknowledging that e-commerce’s growing complexity requires a coordinated legal and regulatory approach. The following key actions are central to the Commission’s strategy:[7]
1) Structural reforms and coordination among authorities
The Commission stresses the need for a unified regulatory framework that combines national and EU-level efforts. One of the core proposals is a Customs Reform that would enhance the EU’s ability to supervise and control the influx of low-value goods. The introduction of a non-discriminatory handling fee for imports is also part of the proposal, aimed at providing resources for customs and improving enforcement capacities. However, there are concerns[8] that the implementation of this handling fee could lead to increased costs for consumers. Since the fee would likely be passed on to the end buyer, it could make imported products more expensive compared to products sold by EU-based retailers. This could raise questions about whether the fee could be perceived as a protective measure for EU businesses, potentially limiting competition from non-EU online marketplaces.
On the environmental front, the Commission is pushing for the Ecodesign for Sustainable Products Regulation and updates to the Waste Framework Directive, designed to ensure products sold within the EU meet high sustainability standards, reducing the environmental impact of low-cost imports.[9]
2) Stronger coordinated controls for imported goods
The Commission calls for coordinated enforcement to tackle non-compliant products entering the EU via e-commerce platforms, including creating a Customs Priority Control Area for high-risk third-country products. However, with up to 12 million low-value non-food products entering the EU daily, the practicalities of product testing remain unclear.[10] While „ultra-fast delivery” is a key selling point for non-EU online sellers, product testing could significantly delay delivery times. Existing regulations like the Market Surveillance and General Product Safety Regulations give authorities the power to issue take-down orders for non-compliant goods, impacting online trading practices.
The European Commission is investigating e-commerce platform Shein under the Digital Services Act (DSA), requesting detailed documents on risks related to illegal content, non-compliant goods, and transparency of its recommender systems.[11] This investigation is part of a broader effort to ensure compliance with EU consumer protection and safety laws, alongside a parallel inquiry by the Consumer Protection Cooperation (CPC) Network, focusing on Shein’s adherence to regulations on consumer safety, data protection, and algorithm transparency.
Similarly, in November 2024, the Consumer Protection Cooperation (CPC) Network, working with national authorities, targeted the e-commerce platform Temu for non-compliance with EU consumer protection laws. The investigation covers issues such as misleading discounts, pressure selling, and forced gamification.[12] Temu has been urged to address these practices or face potential fines. This action is separate from ongoing investigations by national authorities[13] in Hungary, Poland, and France, as well as from the European Commission’s proceedings under the DSA and future product safety enforcement.
3) Enhanced enforcement to protect consumers online
The European Commission continues to prioritize enforcement of the Digital Services Act (DSA) to ensure that online marketplaces comply with regulations. This includes intensifying supervisory actions and reinforcing partnerships with EU agencies like EUIPO. Member States are encouraged to appoint competent authorities and create e-commerce task forces to enhance enforcement efforts. The Commission will provide support to these efforts through DSA officers and coordination under the European Board for Digital Services.[14] It will also focus on evaluating how the DSA interacts with other legal frameworks, supporting the Consumer Protection Coordination Network (CPC) with tools like the eLab toolbox, and reviewing the Consumer Protection Cooperation Regulation.
Furthermore, the Commission advocates for the swift adoption of the revised Alternative Dispute Resolution (ADR) Directive, ensuring effective dispute resolution for consumers.[15] In addition, the Commission will prioritize enforcement of the Digital Markets Act (DMA), particularly concerning the impact of digital gatekeepers on e-commerce.
4) Leveraging digital tools for supervision
The Commission is enhancing market surveillance by prioritizing digital tools. Key to this effort is the implementation of the Digital Product Passport (DPP),[16] which will track product lifecycle data and sustainability. A first action plan for DPP will be adopted by April 2025. The Commission is also working to streamline existing databases into an interoperable system, beginning with the Safety Gate and the Customs Risk Management System (CRMS2). To combat recurring dangers, market surveillance authorities will continue to receive the e-Surveillance WebCrawler, which detects dangerous products, along with a new web crawler to identify newly listed non-compliant items.[17]
5) Empowerment and information sharing through international cooperation
The Commission recognizes the importance of global cooperation to tackle non-compliant goods entering the EU, particularly from third countries like China. To address this, the Commission will support campaigns through the European Consumer Centres Network (ECC-Net) to raise awareness about EU product safety rules, especially for non-EU traders.[18] It will also support the training of consumer professionals through the ConsumerPRO programme to offer personalized advice to consumers. The Commission calls for the swift adoption of the proposed CountEmissions EU regulation and continues to incentivize voluntary cooperation among online marketplaces and stakeholders through initiatives such as the Product Safety Pledge+, the Memorandum of Understanding against Counterfeit Products, and the EU Internet Forum.
Conclusion: Navigating the Future of E-Commerce Regulations
The European Commission’s “Comprehensive EU Toolbox for Safe and Sustainable E-Commerce” represents a pivotal step in reshaping the regulatory framework for the e-commerce sector. With a clear focus on consumer protection, sustainability, and fair competition, these regulatory initiatives will fundamentally change how e-commerce operates within the EU. As non-compliant and unsafe products increasingly flood the market, the EU’s response aims to ensure that both businesses and consumers can thrive in a safer, more sustainable digital marketplace. However, issues related to the practical implementation of the strategy remain and will need to be addressed in the coming years. Ultimately, businesses must stay ahead of these changes to avoid legal and financial risks, while those that embrace early compliance will gain a competitive advantage.
[1] European Commission. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: A Comprehensive EU Toolbox for Safe and Sustainable E-Commerce. COM(2025) 37 final, 5 Feb. 2025, https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52025DC0037, hereinafter: Toolbox for Safe and Sustainable E-Commerce.
[2] Norton Rose Fulbright. “European Commission Clarifies Its Consumer Protection Agenda for E-Commerce.” Norton Rose Fulbright, February 2025, www.nortonrosefulbright.com/en/knowledge/publications/7e59292c/european-commission-clarifies-its-consumer-protection-agenda-for-e-commerce.
[3] Toolbox for Safe and Sustainable E-Commerce.
[4] Ibid.
[5] Sirimanne, Shamika N. „Addressing the Environmental Footprint of E-Commerce.” Trade and Sustainability Review, A Focus on Digital Trade, Oct. 2024, International Institute for Sustainable Development, 30 Oct. 2024, www.iisd.org/articles/policy-analysis/e-commerce-environmental-footprint.
[6] Toolbox for Safe and Sustainable E-Commerce.
[7] Ibid.
[8] See for example: FratiniVergano. „Rising Costs for Purchases on the Temu and Shein Online Marketplaces? The EU Intends to ‘Curb the Import of Non-Compliant Products and to Protect the Environment.'” Lexology, 24 Feb. 2025, www.lexology.com/library/detail.aspx?g=b50b2605-5b78-4c26-8b64-e9c602d36391.
[9] Toolbox for Safe and Sustainable E-Commerce.
[10] FratiniVergano, 2025.
[11] European Commission. “Commission Requests Information from Shein on Illegal Products and Its Recommender System.” 6 Feb. 2025, https://digital-strategy.ec.europa.eu/en/news/commission-requests-information-shein-illegal-products-and-its-recommender-system.
[12] Ibid.
[13] Ibid.
[14] Toolbox for Safe and Sustainable E-Commerce.
[15] Ibid.
[16] European Union. “EU’s Digital Product Passport: Advancing Transparency and Sustainability: How to Leverage Open Data for Clearer Product Insights and Improved Environmental Practices.” EU Open Data Portal, 27 Sept. 2024, https://data.europa.eu/en/news-events/news/eus-digital-product-passport-advancing-transparency-and-sustainability.
[17] Toolbox for Safe and Sustainable E-Commerce.
[18] Ibid.
