Online retailer AliExpress has been fined €550 million (£470 million) by the European Union for failing to enforce checks preventing the sale of illegal and unsafe goods.
In a statement, the European Commission said “AliExpress fell short of its obligation under the Digital Services Act to diligently assess the risk of dissemination of illegal, unsafe, or counterfeit products through its services in multiple ways.” Among the company’s shortcomings were understaffing their human moderators responsible for removing illegal products, failing to prevent illegal products being advertised to customers, and failures to monitor the efficacy of their own moderating system.
The decision could have a major impact on the e-bike industry in the UK, which relies heavily on Chinese imports, both directly and via the EU. In 2023 Suffolk Trading Standards, which manages the Port of Felixstowe, warned that thousands of unsafe e-bikes and e-scooters were being seized for failing to meet the requirements for marking, instructions, and essential safety documentation.
> Thousands of unsafe e-bikes and e-scooters are being seized at UK ports
Several makes were found without a fuse meaning they had no means of cutting out in the event of a fault in the supply lead, and increasing the fire risk. In recognition of the country of origin of many of these imports, guidance for importers was also issued in simplified Chinese.
AliExpress has now been given until mid-October to detail to the EU it’s plans to comply with the Digital Services Act, with the company facing further fines if it does not do so. However, the €550 million fine is based on the company’s risk assessment reports from 2023 and 2024, leaving the door open to further punishment. But in response, AliExpress said it would appeal the fine whilst China’s Commerce Ministry accused the EU of abusing its powers to discriminate against Chinese enterprise.
More recently, AliExpress and its parent company Alibaba, have claimed credit for clamping down on counterfeit goods, including cooperating with Chinese authorities to arrest manufacturers of fake Specialized, Pinarello and Cannondale bike parts.
The UK has taken similar steps to the EU to tighten its e-commerce regulations. Last year, the government passed the Product Regulation and Metrology Act into law. The act is intended to “preserve the UK’s status as a global leader in product regulation, supporting businesses and protecting consumers,” and has been welcomed by the British bike industry for improving safety standards.
More recently, the e-bike industry in Britain launched a trademark, E-bike Positive, intended to reassure customers of verified, trustworthy brands and retailers. The campaign has the backing of several major companies and sees tags attached to safe products, stickers in shop windows and in-store information posters.
