A recent EU-wide screening of online marketplaces, conducted by the European Commission, revealed that about half of online traders selling second-hand goods fail to properly inform consumers about their return rights, as required by the Consumer Rights Regulations. This lack of transparency may leave consumers unaware of their legal entitlements when buying pre-owned items.
Michael McGrath, the EU Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, emphasised that second-hand goods are vital to a circular economy, underscoring the importance of ensuring that all traders, including those dealing in second-hand items, respect consumer rights. However, Commissioner McGrath noted that the results of the recent sweep indicate that this is not always the case and urged affected traders to make sure their practices are fully compliant with EU consumer law.
The European Commission led a coordinated effort together with 25 EU consumer protection authorities, including Malta, as well as authorities from Iceland and Norway. The findings in Malta were largely consistent with the broader EU results, with many flagged traders failing to provide information on the legal and commercial guarantees, as well as consumers’ right of withdrawal.
In total, the 27 authorities examined 356 online traders selling second-hand products, such as clothing, electronic devices and toys. The findings revealed that 185 traders (52%) were potentially in violation of EU consumer protection laws, raising concerns about compliance and transparency in the second-hand market.
The screening revealed that 40% of the online traders failed to clearly inform consumers about their right of withdrawal, which allows them to return a purchased product within 14 days without providing any justification or incurring additional costs. This lack of transparency may mislead consumers into believing they do not have this right when buying second-hand goods.
The findings in Malta were largely consistent with the broader EU results
Additionally, 45% of traders did not inform consumers about their legal right to return faulty products or items that do not match their description or function as advertised.
The screening also examined the accuracy of environmental claims made by online traders. Among the 34% of traders who advertised their products as environmentally friendly, 20% failed to provide sufficient evidence to support their claims, while 28% were found to be manifestly false, deceptive or likely to qualify as unfair commercial practices. This highlights concern about greenwashing, where businesses mislead consumers by making unverified or exaggerated sustainability claims.
Other breaches identified by the screening concerned the lack of transparency regarding the traders’ identity and pricing information. Specifically, 5% of the traders assessed failed to provide essential details such as their name, business address or contact information, making it difficult for consumers to reach them in case of issues or disputes. Furthermore, 8% of traders did not clearly display the total price of the product, including all applicable taxes, which could mislead consumers about the actual cost of their purchase.
As a result of this screening, consumer protection authorities found that at least 52% of the websites examined may be in violation of the Consumer Rights Directive. This directive mandates that consumers must be provided with clear and essential information when buying goods or services, both online and offline, to ensure they can make informed purchasing decisions.
In light of these findings, the national consumer enforcement authorities will determine whether to take further action against the traders identified for additional investigation. They will assess the situation and, if necessary, initiate proceedings to request compliance with the relevant consumer protection regulations, in accordance with the procedures established by their respective national authorities.
Sweeps are coordinated by the European Commission and executed simultaneously by national enforcement authorities within the Consumer Protection Cooperation Network. These sweeps follow a two-step process. The first step involves screening websites to identify potential breaches of consumer law within a specific online market. The second step is enforcement, where national authorities require traders to take corrective action to ensure compliance.
Sweeps have been conducted annually since 2007, focusing on various areas of consumer protection. In the last five years, these sweeps have targeted: consumer scams related to the COVID-19 pandemic (2020); misleading sustainability claims (2020); consumer credit (2021); online consumer reviews (2021); car rental intermediaries (2022); Black Friday sales (2022); dark patterns (2022); influencers (2023); and second-hand goods (2024).
Odette Vella is director, Information and Research Directorate, MCCAA.