Online store Ortho-relief is closing down, will refund harmed consumers following ACM action

Over the past few months, the Netherlands Authority for Markets and Consumers (ACM) has received many complaints about dropshipper Ortho-relief. These complaints were about the quality of the products (orthopedic shoes that were shipped directly from China), the delivery time, poor reachability of customer service, and refunds. After ACM had confronted the website’s owner, they decided to stop accepting new orders, and to close down the online store on 1 November. In addition, the owner also started refunding harmed consumers. ACM advices consumers that are still owed refunds to contact the online store as soon as possible since it will close down on 1 November.

Edwin van Houten, Director of ACM’s Consumer Department, adds: “Dropshipping is allowed if it is done according to the rules, and if consumers receive clear information. Unfortunately, this was not the case here. Dropshippers that cause problems are confronted by ACM with their practices. In this case, this has led to harmed consumers being refunded and to the website closing down.”

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) directly delivers to the customer. This is allowed, if dropshippers are clear about this process, and if they comply with the rules for selling online, such as:

• the actual delivery time must be presented clearly;
• If the product is delivered by another company from another country, this must be mentioned with the product.
• Online stores based in the Netherlands must state a return address in the Netherlands. If the online store is based outside the Netherlands, consumers must be informed of the return address prior to the purchase. Also, it must be stated in advance who pays for the return costs.

What can consumers do?

There are many dropshipping websites, and new ones are launched all the time. In order to prevent you from getting tempted into making purchases you will regret afterwards, you would be best advised to check several things before clicking on that ‘purchase’ button:

• Check reviews posted by other consumers before making a purchase, preferably reviews on sites other than the seller’s website. Reviews on the seller’s website are not always reliable.
• Check the information about costs, the return address and return fees, and delivery times. If key information is missing, ask yourself what risks you are willing to take;
• Check whether the website displays contact details, a number from the Netherlands Chamber of Commerce (in Dutch: KvK-nummer) and/or a tax number from the Dutch Tax Administration (in Dutch: btw-nummer). After all, you want to know where you can go to if you wish to return an item or if you have any other issues;
• Many dropshippers run ads on social media such as Facebook and Instagram. If you click on a link in a social-media post or ad that takes you to a product page, please check on the website to see if all of the above information is there.

This information and more can be found on ACM’s consumer information portal ACM ConsuWijzer (in Dutch).