AliExpress hit with record $625M fine after failing to make EU-ordered fixes



Yesterday, the European Commission slapped AliExpress with the largest fine yet under the Digital Services Act (DSA), exceeding $625 million.

In a press release, the EC said that AliExpress failed to “diligently assess and mitigate risks relating to the sale of illegal, unsafe, or counterfeit products on its e-commerce platform.”

Officials found that AliExpress not only failed to staff teams dedicated to removing counterfeit and dangerous items from the platform, but it also made it easy for bad actors to evade detection.

Staff was so limited that some content moderators were sometimes given just “tens of seconds” to evaluate if a flagged product met EU standards, The Guardian reported. The result, the EC said, was that it “found millions of products that reappeared online” after being flagged for removal, “which sometimes stayed for longer than a month.”

Bad actors can easily skirt AliExpress safeguards, the EC said. All some sellers had to do to circumvent automatic takedowns was miscategorize their products so that fewer checks were required before posting dangerous goods.

For shady sellers, the risks of detection appeared low. The e-commerce site’s mandatory brand authorization system was also ineffective and understaffed, the EC found, and AliExpress did not penalize traders for selling illegal products as its policy claims it would.

Making things worse, AliExpress “inadequately assessed how its recommender and advertising systems exacerbate the spread of illegal products,” the EC said. So rather than remove illegal products, AliExpress was recommending them to consumers and helping to maximize exposure. Talking to the press, the European Union’s tech chief, Henna Virkkunen, noted that one in five Europeans shop monthly at retail sites like AliExpress, Temu, and Shein.

AliExpress also relied on a single quantitative metric to gauge how effectively its systems were working to weed out illegal products. And that metric did not properly measure the extent of the harm. EC testing found that “a high volume of illegal products”—including unsafe toys and dangerous cosmetics—“continued to circulate despite AliExpress’ moderation efforts.”



Source link

  • Related Posts

    FCC Plans To Ban Companies Selling DJI Products Under Other Brands

    The proposed ban includes re-shelled versions of old DJI products. Sjo/Getty Images The Federal Communications Commission (FCC) wants to ban products from companies suspected to be selling rebranded…

    Today’s NYT Connections Hints and Answers for July 21, #1136

    Today’s NYT Connections puzzle was a stumper for me. I saw “Tube,” “Gram” and “Book” and thought maybe they referred to the second part of various social media programs —…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    5 drown after several enter Ohio’s Scioto River to rescue struggling swimmer

    5 drown after several enter Ohio’s Scioto River to rescue struggling swimmer

    FCC Plans To Ban Companies Selling DJI Products Under Other Brands

    FCC Plans To Ban Companies Selling DJI Products Under Other Brands

    Donkey Kong Arcade LEGO Set Official Images Surface, Already In-Store

    Donkey Kong Arcade LEGO Set Official Images Surface, Already In-Store

    LVMH Launches VIP Champagne and Culinary Experience at F1 Belgian GP

    LVMH Launches VIP Champagne and Culinary Experience at F1 Belgian GP

    Many Christian voters in the US see Trump as ‘chosen’ by God to lead | Donald Trump News

    Many Christian voters in the US see Trump as ‘chosen’ by God to lead | Donald Trump News

    As Russia deploys jet-powered Shaheds, companies turn to faster interceptor drones

    As Russia deploys jet-powered Shaheds, companies turn to faster interceptor drones