Consumer protection: Second-hand platforms put to the test

Information on warranty rights often inadequate

Frau kauft online Kleidung am Laptop ein.Click to enlarge
Warranty and withdrawal rights also apply to clothing from second-hand platforms.
Source: Gorodenkoff / Adobe Stock

In accordance with European law, online retailers must inform consumers about their rights and refrain from misleading advertising promises. The German Environment Agency (UBA) examined second-hand sales platforms as part of an EU-wide investigation by the European Consumer Protection Cooperation Network (CPC). The findings showed that almost half of the scrutinised platforms do not adequately inform consumers of their warranty rights.

UBA President Dirk Messner stated: “From a sustainability⁠ perspective, I welcome the second-hand trend as a counter-movement to fast-fashion. However, the CPC network's survey has shown that there is still action needed in order to improve consumer protection in the second-hand sector.  What is most important is that the environmental benefits of second-hand shopping are presented in a realistic way and that consumers are informed about their rights.”

A sweep by the Consumer Protection Cooperation Network (CPC) is an EU-wide coordinated investigation to find evidence for any subsequent legal enforcement proceedings. The sweep provides information, but stops short of issuing legally binding infractions. In this sweep, 356 second-hand sales platforms were probed. The sweep examined not only the clothing sector, but also other platforms such as those selling electrical goods, books and vehicle parts. In particular, the participating authorities and associations wanted to know whether the platforms were fulfilling their duties under European law to appropriately inform consumers and whether advertising with misleading environmental claims (known as “greenwashing”) was being used.

The findings showed that around 45 per cent of the websites examined in the sweep contained indications that consumers are not made aware of their statutory warranty rights, i.e. the rights to which they are entitled if the purchased goods are defective. The initial assessment was that around 40 per cent do not provide clear enough information about the right of cancellation, i.e. the right to cancel a contract completed online within 14 days. According to the Consumer Rights Directive, online retailers must provide consumers with this information in a clear and comprehensible manner. 

Additionally, 34 per cent of the websites reviewed made environmental claims. According to the Unfair Commercial Practices Directive, advertising with misleading environmental claims is prohibited, i.e. if a business suggests an environmental benefit that does not actually exist or if essential information is withheld without which consumers cannot assess actual environmental impacts. On the positive side, the sweep classified only around 20 per cent of all identified environmental claims as potentially misleading. 

In Germany, the German Environment Agency (UBA) coordinated with the Federation of German Consumer Organisations (vzbv) and the Centre for Protection against Unfair Competition (Wettbewerbszentrale) in the sweep.  

The investigation of the anomalies identified in the sweep is the responsibility of the national competent authorities and bodies, which take measures to eliminate the identified infringements within their respective fields.

Further information

The UBA advocates for the collective interests of consumers across borders. However, it does not enforce the individual claims of particular consumers. Rather, these consumers benefit collectively from the discovery und subsequent remedy of abuses and violations by companies operating throughout Europe.

The sweep is not a representative study of the entire second-hand sector. However, the coordinated investigations are helping to improve European-wide compliance with consumer law and identify offences against shared consumer interests.

Umweltbundesamt Headquarters

Wörlitzer Platz 1
06844 Dessau-Roßlau
Germany

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 fashion  fast-fashion  clothing industry  clothing  consumer protection