Shopify promises to tackle unreliable webshops more effectively

What went wrong?

According to the European rules, webshops must meet certain requirements. Not all webshops that were created via Shopify met these requirements. Many complaints regarding fake webshops came in to European Consumer Centres, particularly during the COVID-19 pandemic. Examples of commonly occuring illegal practices:

• A lack of information about the vendor
  Such as a lack of contact information. Consumers cannot contact the vendor if something goes wrong with their order.
• A lack of information about consumer rights
  Such as information about the right of return.
• A lack of information about dropshipping
  Dropshipping companies often give the impression they are based within the country, but actually send products directly from a warehouse in China. In such cases, consumers often don't know how long they have to wait for their orders.
• False information
  Such as fake discounts or creating a false sense of scarcity (‘Note: only 2 left!’)
• Fake products
  Such as counterfeit products and products that do not comply with safety standards.
• Non-delivery
  The products ordered never arrive.
   

What has Shopify promised now?

The European Commission and national authorities for consumer protection (such as the ACM in the Netherlands) entered into discussions with Spotify in 2021. The platform promised to make webshops safer for consumers and to follow the European rules set forth. 

• Shopify amends templates
  This means that pages now have standard fields to, for example, enter contact details, terms and conditions, privacy policies and return terms and conditions.
• Shopify requires businesses to provide information
  Shopify's terms and conditions now require webshops to provide contact details. Webshops must also provide information about their returns policy and delivery times.
• Shopify helps tackle fraudulent webshops
  Webshops that are reported by national authorities are either removed by Shopify or blocked until they comply with the rules. If a national authority requests information about a webshop, Shopify will provide the information.
• Shopify gives businesses better guidance
  (New) businesses get better support and guidance about European consumer rights.

What complaints did ECCs receive about Shopify?

The Shopify webshops about which European consumers complained were based mainly in the United Kingdom and the Netherlands. Most complaints came from Belgian and French consumers. Most complaints in Europe were about Shopify webshops selling ladies clothing, pet products and shoes. More than half of all complaints concerned an ordered product that did not arrive. In addition, ECCs heard many accounts from consumers who experienced difficulties returning products, received faulty products, or products that were not as promised.

In the Netherlands, consumers complained primarily about Shopify webshops that sold games, shoes, clothing and personal care products.