Ultra-cheap online retailers must be banned from operating in the EU

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JEF Finland demands that ultra-cheap online retailers be banned from operating in the EU. These operators have violated EU legislation flagrantly and extensively, meaning they have no legal grounds for continuing their operations.

Ultra-cheap online retailers distort markets, channelling profits elsewhere while the risks remain in Europe. Unregulated products pose a risk to consumer safety, for example in terms of fire safety. Most crucial, however, is the harmful impact on the environment: the flood of parcels and mass production cause unreasonable emissions without bringing genuine added value to the consumer. Ultra-cheap online retailers promote overconsumption at a time when it should instead be curbed. 

As a result of the tightened tariff policy of the United States, China is directing its supply to Europe in ever greater volumes. Shipments from Chinese ultra-cheap online retailers to the EU have indeed grown explosively: according to Finnish Customs, 28.2 million shipments arrived in Finland from outside the EU in 2024, and the number is estimated to rise to as many as 50 million in 2025. At EU level, an estimated 4.6 billion parcels arrived last year.

Chinese ultra-cheap online retailers evade customs duties, fail to comply with European safety and labour obligations, and repeatedly violate consumer protection. This is unfair competition that comes at the expense of European industry and jobs. At the same time, the lack of regulation makes consumers vulnerable, as products may be dangerous and there is no chain of accountability. Particular concern has been raised by the chemicals found in these products, some of which have been found to be toxic. The temptation created by cheap goods is part of these companies’ strategy, but in the long run it proves costly for both the individual and society. Poor-quality products withstand use badly, which means a short or almost non-existent lifespan. The products rarely have any meaningful resale value, which easily leads to the immediate disposal of a newly bought item.  

Within the Union, the operations of ultra-cheap online retailers have raised widespread concern. The 2024 report of the European Parliament’s Committee on the Internal Market and Consumer Protection states unambiguously that, through their current operations, ultra-cheap online retailers violate not only internal market obligations but also those of the World Trade Organization (WTO). The report led to a committee recommendation demanding stronger intervention against operators that circumvent regulation and the removal of their tax exemptions. Member states were given a specific recommendation to restrict high-risk operators near critical infrastructure and border areas.

JEF Finland demands that the European Union must prevent operators that circumvent regulation from accessing the market and strengthen customs controls as part of the upcoming customs reform. Individual fines imposed by member states are not enough when facing a billion-euro business model. The true price of ultra-cheap online retailers is paid in Europe through adverse climate impacts and weak consumer safety. It is time for Europe to stand behind its own values: for fair competition, responsible consumption and a sustainable future.

Further information:
Nea Baarman

President

[email protected]

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