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Regulation, Economics

Prediction: Online marketplaces will face increased scrutiny under proposed legislation

Regulation, Economics
Product Safety, Liability and Recall
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Prediction

Online marketplaces will face increased scrutiny over the coming year as authorities look to prevent the sale of defective, harmful and possibly illegal goods. Despite the obvious attraction of inexpensive products, there are significant concerns over the safety of many items sold. A current lack of clarity over the responsibilities resting with online marketplaces has prompted calls for regulation. In the UK, the Product Regulation and Safety Bill will seek to address this issue, identifying 'online marketplaces' as services on websites, mobile apps or other platforms used to market products, highlighting the varied nature of eCommerce. The draft Bill provides that regulations may impose product safety requirements on persons who control access to or the contents of online marketplaces, or those who act as intermediaries for those persons. The successful passing of this legislation should result in greater equity between physical and online retailers, as well as the expectation of greater enforcement and corrective measures to prevent the sale of unsafe products.

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