E.U. Marketplace Rules Crackdown: What Sellers Need to Know Before It’s Too Late

Ever wondered what it takes to sell on an E.U. marketplace these days? Spoiler alert: It’s no stroll in the park anymore. With the Digital Services Act kicking in as of February 2024, online sellers now face intense identity checks, tighter contract disclosures, and the looming threat of suspension if they slip up. Why the crackdown? Because the flood of illegal products moving through platforms is staggering—152 million seized items worth a whopping €3.4 billion last year alone. Marketplaces are now the gatekeepers, legally responsible for who gets to sell what, making seller verification a make-or-break hurdle. And just when you thought it couldn’t get more complex, the General Product Safety Regulation starts flexing its muscles this December, tightening grip on product safety and accountability. If the idea of selling online felt breezy before, welcome to the age where transparency and fine print rule the digital shelves. Ready to dive into the nitty-gritty? LEARN MORE.

Sellers on E.U. marketplaces face heightened identity checks, contract disclosures, and suspension risk. The changes stem from the Digital Services Act, enacted by the European Commission in 2022 and enforceable as of February 2024, governing how online “intermediaries” handle illegal products.

The growth of such products is dramatic. Across all intermediaries — marketplaces, ecommerce sites, social media platforms, app stores — E.U. authorities in 2023 seized 152 million illegal items worth €3.4 billion ($3.9 billion), versus 66 million and €1.5 billion in 2020 (PDF).

Seller Verification

The DSA requires marketplaces to verify sellers’ identities before allowing them to offer goods to E.U. consumers. Sellers provide:

• Business registration documents
• VAT or tax identification numbers
• Physical address
• Email and phone contact details
• Self-certification confirming that products comply with E.U. law

Marketplaces must:

• Suspend noncompliant sellers until they submit the required information. In practice, incomplete documentation during onboarding can trigger immediate suspension.

• Display to consumers certain details of verified sellers. Most platforms now show seller contact information on public profile pages, typically including the business name, address, and an email or phone contact.

Enforcement

The law imposes penalties on marketplaces of up to 6% of global annual sales for non-compliance, giving strong incentives to verify sellers and remove problematic listings promptly.

Trusted flaggers play an important role in detection. Regulators recognize these organizations, which include trade associations, consumer protection groups, and intellectual property enforcement bodies. Marketplaces must process the flaggers’ reports with priority.

Regulatory investigations increasingly target large marketplaces.

• In July 2025, the European Commission said Temu had breached the DSA for failing to assess the risk of illegal products on its platform adequately.

• AliExpress faced scrutiny in 2025 and agreed to improve trader verification and product monitoring.

• Shein received regulatory information requests regarding illegal goods and consumer protection practices.

Such investigations focus on the platforms, but the operational response often affects sellers first.

GPSR Too

Marketplace sellers are also required to comply with the E.U.’s General Product Safety Regulation, effective December 2024.

The law focuses on product safety and supply-chain accountability, including product traceability and the identification of responsible economic operators.

Together, the regulations create a dual compliance framework:

• DSA governs platform responsibilities and enforcement procedures.
• GPSR governs product safety and legal accountability for goods sold to consumers.

Since they now bear legal responsibility for illegal listings, marketplaces must carefully verify sellers and respond quickly to violations. Regulatory pressure often drives the marketplaces’ verification policies.

For merchants, the requirements are straightforward: Maintain current registration, tax, and compliance documents, and ensure the contact information displayed on marketplace profiles is accurate.

Selling through E.U. marketplaces increasingly entails the same discipline as a regulated retail environment.

In short, verification and transparency are becoming routine for marketplace selling.