Distribution
The Digital Sector Targeted by the DGCCRF in 2023
In 2023, more than ever, the digital sector is at the heart of the DGCCRF's concerns.
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In 2023, more than ever, the digital sector is at the heart of the DGCCRF's concerns.
75% of the French population now shops online, a trend that is particularly pronounced among 12-17 year-olds.
Against this backdrop, the Directorate General for Competition, Consumer Affairs and Fraud Control (DGCCRF) has decided to step up its oversight of the digital sphere.
These issues are an opportunity to review their practices and to ensure a safe and fair online environment for consumers.
Cracking down on dropshipping abuses
Dropshipping, an online sales method in which the seller is responsible solely for marketing and selling the product, often leaves much to be desired when it comes to transparency.
A number of sellers fail to provide adequate pre-contractual information, and problems of product unavailability or failure to deliver are common, which may amount to commercial practices that are criminally punishable under consumer law.
In 2022, the DGCCRF inspected 217 dropshipping websites and found that more than 54% of them were not compliant with the applicable regulations, hence the renewal of this investigation for 2023.
For websites engaged in dropshipping, I can help you ensure that your practices are transparent and respectful of consumers and of the regulations.
Combating unfair practices by influencers
Influencers are increasingly present in digital commerce, and their actions can have a considerable impact on consumers.
However, some of them do not fully comply with the rules of the Consumer Code.
The DGCCRF targeted and inspected more than 60 influencers in 2022, highlighting irregularities in their practices, including the failure to disclose the commercial nature of their posts and the promotion of risky products or services.
As a lawyer specialising in digital law, I can assist you in ensuring that your influencer marketing practices are ethical and compliant with the regulations.
I invite you to read the latest news on the regulation of influencer practices in my attached article: see HERE
Penalising deceptive practices on websites that monetise administrative procedures
The digitisation of administrative procedures has opened the door to commercial websites that offer to help carry out these procedures for a fee.
Unfortunately, some of these websites resort to deceptive practices, misleading users who confuse them with official websites.
In 2022, the DGCCRF inspected 32 of these websites, and 41% of them were not compliant with the regulations.
Avoiding imbalances between platforms and the businesses that use them
The relationships between online marketplaces and the businesses that use them to sell their products can sometimes be unbalanced.
The P2B Regulation (EU) No 2019/1150, which came into force in July 2020, aims to promote fairness and transparency in these relationships.
In 2022, the DGCCRF investigated several marketplaces and found breaches of the rules, leading to corrective proceedings.
If you are a digital platform dealing with businesses, I can assist you as a lawyer specialising in digital law in order to review your documents and ensure your legal compliance.
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Regulating the digital sector is more than ever a priority in 2023.
Digital players have an opportunity to play an active role in this regulation by putting in place respectful and fair practices.
To support you in this process, I am at your disposal.
Together, we can build a safer and fairer digital environment for everyone.
To learn more
Why is the DGCCRF targeting the digital sector?
Because 75% of the French population shops online, a trend that is pronounced among 12-17 year-olds. Against this backdrop, the DGCCRF has stepped up its oversight of the digital sphere in order to ensure a safe and fair online environment for consumers.
Is dropshipping under particular scrutiny?
Yes. The DGCCRF is targeting dropshipping for its frequent lack of transparency: insufficient pre-contractual information, product unavailability, failures to deliver. In 2022, it inspected 217 websites and found that more than 54% were non-compliant, hence the renewal of the investigation.
What breaches does the DGCCRF identify in dropshipping?
Mainly the absence of adequate pre-contractual information and problems of unavailability and failure to deliver. These breaches may constitute misleading commercial practices, which are criminally punishable under consumer law. Transparency is the weakness most frequently identified.
Are influencers monitored by the DGCCRF?
Yes. The DGCCRF targeted and inspected more than 60 influencers in 2022, because some do not fully comply with the Consumer Code. The influencer sector is among the priority targets of fraud control in the digital sphere.
What does an e-commerce website risk if inspected by the DGCCRF?
In the event of a breach, the website is exposed to administrative penalties, and even criminal penalties for misleading commercial practices. Beyond the penalty, an inspection revealing non-compliance can harm the website's reputation. Preventive compliance limits this risk.
How can you prepare for a DGCCRF inspection?
By auditing your practices: complete pre-contractual information, transparency on delivery times and the origin of products, compliance of the GTC and of commercial communications. Correcting breaches in advance allows you to approach a possible inspection with peace of mind and to avoid penalties.
Is dropshipping therefore prohibited?
No. Dropshipping remains legal, but it must comply with the rules on distance selling: pre-contractual information, right of withdrawal, delivery conditions and fairness of practices. It is the failure to comply, not the model itself, that the DGCCRF penalises.
How can you legally secure your digital business in the face of the DGCCRF?
By ensuring the compliance of your sales journeys, documents and communications with consumer law, and by correcting the weaknesses identified. Legal support helps to anticipate inspections and to avoid practices likely to be penalised.
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