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EU to Hold E-commerce Platforms Liable for Unsafe Goods, Targeting Temu, Shein, and Amazon

The European Union is moving forward with plans to hold e-commerce platforms like Temu, Shein, and Amazon Marketplace responsible for dangerous or illegal products sold on their websites, according to a report by the Financial Times on Saturday. The new proposal includes customs reforms that would require online platforms to provide detailed data on products before they reach the EU, giving customs authorities more control over inspections and the ability to better track and regulate goods.

Under current rules, consumers who purchase goods online within the EU are considered the importers for customs purposes. However, the new reform would shift this responsibility to the e-commerce platforms themselves. Platforms like Amazon, Shein, and Temu would be required to ensure that products comply with EU safety standards, collect the relevant customs duties and VAT, and provide detailed product information before goods are shipped to the EU.

The EU also plans to create a new central customs authority, the EU Customs Authority (EUCA), which will pool customs data from the 27 member states. This new body will be tasked with screening goods and identifying potential risks before the products are even loaded for transport or physically arrive within the EU, as per the draft proposal seen by the Financial Times.

Currently, Amazon, Shein, and the EU have not commented on the matter, and Temu could not be reached for a statement. The new rules are expected to provide stronger oversight and improve consumer safety in the rapidly growing e-commerce sector.

 

Amazon Increases Ad Spending on Elon Musk’s X Despite Past Concerns

Amazon is reportedly ramping up its advertising spend on Elon Musk’s social media platform X, according to the Wall Street Journal. This marks a significant shift from the e-commerce giant’s decision to pull much of its advertising from the platform over a year ago due to concerns about hate speech.

The move follows a period of decreased ad spending on X by other major companies, including Apple, which removed its ads in 2023. However, Apple has since engaged in discussions about testing ads on the platform again. Other advertisers, including tech and media companies, also suspended their campaigns after Musk’s endorsement of an antisemitic post, which falsely accused Jewish people of inciting hatred against white people.

Since Musk’s acquisition of the platform, formerly known as Twitter, in October 2022, X has seen a sharp decline in monthly U.S. ad revenue—dropping at least 55% year-over-year each month. Musk has acknowledged the risk of a prolonged advertising boycott, admitting that it could potentially bankrupt the platform.

 

Lawsuit Accuses Amazon of Secretly Tracking Consumers Through Cellphones

Key Points:

  • Amazon is facing a class action lawsuit filed in San Francisco federal court, accusing the company of secretly tracking consumers’ movements and selling the collected data.
  • The lawsuit claims Amazon used its Amazon Ads SDK code to allow app developers to collect geolocation data from users’ phones without their consent, revealing sensitive information such as religious affiliations, sexual orientations, and health concerns.
  • The complaint is led by Felix Kolotinsky, a California resident, who alleges that Amazon collected his personal data through the Speedtest by Ookla app.
  • The plaintiffs seek unspecified damages for millions of affected California consumers. The lawsuit cites violations of California state law related to unauthorized computer access and penal law.

Broader Implications:

  • The case highlights growing concerns about companies profiting from user data without proper consent, a trend that has sparked multiple lawsuits and regulatory inquiries in recent years.
  • The lawsuit comes amid other similar cases, such as a recent suit filed by Texas against Allstate for tracking drivers through cellphones.