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Foreign webshops must also comply with European consumer law when selling to EU consumers. The ACM forced AliExpress to amend its terms of sale: consumers must be able to go to a court in their own country, have the right of withdrawal and a statutory warranty of at least two years, and must be properly informed.
The Authority for Consumers & Markets (ACM) reprimanded AliExpress because the terms of sale did not comply with European consumer law — partly following an action by the Consumers' Association, among others. It shows that even a giant like Alibaba must comply with European rules.
Which rules did AliExpress violate?
- Mandatory arbitration in Hong Kong. The terms and conditions forced buyers to go to an arbitration institute in Hong Kong in the event of problems. This is not permitted: European consumers must have access to a court in their own country, so Dutch consumers must go to a Dutch court.
- No right of withdrawal. The terms and conditions excluded withdrawal. In principle, consumers may withdraw their purchase free of charge and without giving reasons, with a refund of the purchase price (including shipping costs). There are exceptions, and the seller may charge the return costs to the buyer, but a general prohibition is not permitted.
- No information regarding the warranty. Information was not provided regarding the statutory warranty period of at least two years. Furthermore, sellers have a duty to provide information: for instance, it must be clear when a seller has paid to rank higher in search results, or when additional costs apply.
Consumer law also applies to foreign sellers
European consumer law applies when consumers in the EU purchase goods or services. The fact that AliExpress is part of the China-based Alibaba Group changes nothing in this regard. AliExpress has since adjusted its terms and conditions so that customers have a right of withdrawal and a two-year warranty. Had the company not done so, the ACM could have intervened with fines that could amount to up to 900,000 euros.
Frequently Asked Questions
Do European consumer rules also apply to a Chinese webshop?
Yes. If a foreign webshop sells to consumers in the EU, it must comply with European consumer law, including the right of withdrawal and the statutory warranty.
Is a webshop allowed to exclude the right of withdrawal?
No, a general ban on withdrawal is not permitted. However, specific legal exceptions do apply, and return costs may be charged to the buyer under certain conditions.
May a webshop refer disputes abroad?
No. In the event of a dispute, a consumer must retain access to a court in their own country; mandatory foreign arbitration in the terms and conditions is not permitted.
Have your webshop screened
European consumer law is non-negotiable. Are you unsure whether your webshop complies with all regulations — for example, regarding information, right of withdrawal, and warranty? The legal experts at MKB Juristen review everything and make suggestions for improvement. View our expertise in contract law or contact us.
