The European Commission has conducted an investigation into online traders of second-hand goods. A majority of the companies involved in the so-called sweep may be in breach of European consumer rights and will be further investigated.
The European Commission announced that 185 out of the 356 examined companies (52 percent) are potentially violating regulations. The investigation was coordinated by the European Union’s executive body and carried out by national consumer protection authorities in 25 member states, as well as in Norway and Iceland. These authorities screened online sellers of second-hand goods, including clothing, electrical equipment, and toys.
Right of withdrawal
Two out of five investigated traders failed to clearly inform consumers about their right of withdrawal, such as the right to return products free of charge within 14 days without providing a reason. An even larger group failed to comply with the legal one-year warranty period for second-hand goods at the time of the investigation.
The legal one-year warranty period is often ignored
The researchers also frequently encountered misleading or insufficiently substantiated environmental claims. Additionally, 8 percent of the traders did not display total prices, and 5 percent provided incorrect information about their identity.
Unfair commercial practices
“Traders’ obligations with regards to consumer information are covered by the Consumer Rights Directive and the e-Commerce Directive”, the European Commission stated. It continued: “Traders’ commercial practices must not mislead consumers and must comply with the Unfair Commercial Practices Directive.”
National consumer authorities will now decide whether to take action against the 185 traders selected for further investigation, following their national procedures.
Recommerce on the rise
Online second-hand sales are growing rapidly, attracting both established retailers such as H&M and Ikea as well as dedicated second-hand platforms like Vinted and Rebuy. The European recommerce market is estimated to be worth over 100 billion euros and is growing faster than the overall retail market. For Amazon, European second-hand sales are already a billion-euro business.
