"The DSA requires marketplaces to verify sellers' identities before allowing them to offer goods to E.U. consumers. Sellers provide: Business registration documents, VAT or tax identification numbers, Physical address, Email and phone contact details, Self-certification confirming that products comply with E.U. law. Marketplaces must: Suspend noncompliant sellers until they submit the required information."
"The law imposes penalties on marketplaces of up to 6% of global annual sales for non-compliance, giving strong incentives to verify sellers and remove problematic listings promptly. Trusted flaggers play an important role in detection. Regulators recognize these organizations, which include trade associations, consumer protection groups, and intellectual property enforcement bodies."
"Across all intermediaries - marketplaces, ecommerce sites, social media platforms, app stores - E.U. authorities in 2023 seized 152 million illegal items worth €3.4 billion ($3.9 billion), versus 66 million and €1.5 billion in 2020, demonstrating dramatic growth in illegal product seizures."
The Digital Services Act, enacted by the European Commission in 2022 and enforceable since February 2024, establishes strict requirements for online marketplaces to combat illegal products. Sellers must provide business registration documents, tax identification numbers, physical addresses, and contact details, with marketplaces required to verify this information before allowing sales to EU consumers. Marketplaces must display verified seller details to consumers and suspend noncompliant sellers immediately. The law imposes penalties up to 6% of global annual sales for non-compliance. Trusted flaggers including trade associations and consumer protection groups assist in detecting illegal products. EU authorities seized 152 million illegal items worth €3.4 billion in 2023, compared to 66 million items worth €1.5 billion in 2020, demonstrating the scale of the problem.
Read at Practical Ecommerce
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