Acm.nl uses cookies to analyze how the website is used, and to improve the user experience. Read more about cookies

ACM fines dropshipper for unclear information about deliveries and returns

Summary

  • ACM has imposed a fine on a dropshipper for unclear information about returns and delivery.
  • It is important for consumers to know that their orders come directly from China, and that any returns need to go there too.
  • ACM has imposed a fine of 90,000 euros on the owner of the online store. The violations have already been ended.

The Netherlands Authority for Consumers and Markets (ACM) has imposed a fine on the owner of the website wolffashion.de, which has its products shipped directly from China. This is called dropshipping. The fact that the products came from China and also had to be returned to China had not been mentioned on the website in a clear and easy-to-understand manner. This is required however, as this information is important to consumers. With online sales in particular, companies must inform consumers in a clear and timely manner to prevent any false expectations and, consequently, any disappointments.

The website wolffashion.de targets German consumers. Since the owner of the website, the company GT Ecom, is located in the Netherlands, the German regulator asked ACM to take enforcement action against the company. ACM has reduced the fine to 90,000 euros, because the company fully cooperated with the procedure, and has already ended the violations.

Martijn Ridderbos, Member of the Board of ACM, says: “Dropshipping in itself is not prohibited. However, businesses that choose to engage in dropshipping need to understand that they must comply with the rules that protect consumers. For example, prior to making a purchase, consumers must know that the order will be shipped directly from China. And, consumers also need to know at that point where orders can be returned to. Companies that do not comply with these rules harm consumers’ confidence in online markets.”

What is dropshipping?

More and more online stores use dropshipping. This means that they sell products that they do not have in stock, but that a third party (often in China) ships these directly to the customer. This is allowed, but dropshippers do need to be clear about this process. Dropshippers also have to comply with the rules for online sales, such as:

  • If the product is shipped by a different company from another country, this information must be given in a clear and easy-to-understand manner before the consumer buys the product;
  • The actual delivery time must be presented clearly;
  • It must be indicated in a clear and easy-to-understand manner where the consumer must send the product to if they wish to cancel their purchase.

For more information about what you as a consumer can do if you are dealing with a dropshipper, please visit ACM’s Consumer Information Portal ACM ConsuWijzer (in Dutch).

More information

Back to top