The rise of e-commerce has made it easier than ever for counterfeit goods to circulate across Europe. In response, the European Union introduced the Digital Services Act (DSA)1 — a powerful legal framework aimed at increasing accountability for online platforms and strengthening consumer protection. Among its many objectives, the DSA plays a crucial role in combating counterfeit products sold online.
The regulation already made some progress: the EU has launched formal proceedings against the Chinese shopping website Temu amid concerns it is failing to halt the sale of illegal products online2; the European Commission designated Shein, Temu, Tik Tok as well as some other online platforms as a Very Large Online Platform under the DSA3. This classification requires companies to implement stricter measures to combat illegal and harmful content, including counterfeit goods4.
Meanwhile, Temu expressed interest in joining the Memorandum of Understanding (MoU) on the Sale of Counterfeit Goods on the Internet, a voluntary agreement facilitated by the European Commission. Current signatories include major platforms like Amazon, Alibaba, and eBay, as well as brands such as Adidas and Nike5.
Here's how the DSA tackles the problem, based on its key legal provisions:
1. Verifying Sellers (Article 30 – Know Your Business Customer)
The DSA obliges online marketplaces to collect and verify essential information about third-party sellers before they are allowed to offer goods. This transparency measure makes it significantly harder for counterfeiters to operate under false identities.
2. Fast Reporting and Removal of Fakes (Article 16 – Notice and Action Mechanism)
Platforms must provide an accessible and efficient system for users to notify them of illegal content — including counterfeit goods. Once notified, the platform is required to act swiftly to remove the infringing listings.
3. Prioritizing Trusted Flaggers (Article 22)
Organizations with proven expertise in identifying illegal content, such as brand protection associations or intellectual property rights holders, can be designated as "trusted flaggers." Their reports are treated with priority, ensuring faster action against counterfeits. For example, in Finland, the Copyright Information and Anti-Piracy Center (CIAPC) has been officially designated as a trusted flagger under the DSA.
4. Blocking Repeat Offenders (Article 23)
Platforms must take measures against users who repeatedly post illegal content. This includes the suspension of persistent counterfeit sellers, helping prevent recurring abuse of the platform.
6. Transparency Obligations (Articles 15, 24, 42)
Digital platforms are now required to publish regular reports on how they moderate content, including statistics on the removal of illegal goods. This transparency increases pressure on platforms to take active steps in combating counterfeits.
7. Clear Consumer Information (Article 6(3) and Article 26(2))
Buyers must be informed whether they are purchasing from a professional trader or a private individual. This clarity helps consumers make better-informed decisions and avoid unknowingly buying fake goods.
Conclusion
The Digital Services Act (DSA) provides a robust and forward-looking legal foundation for addressing the widespread issue of counterfeit goods in the online environment. With the explosive growth of e-commerce and third-party marketplaces, counterfeiters have found new avenues to mislead consumers and profit from intellectual property (IP) theft. The DSA directly responds to these challenges by introducing a series of concrete obligations for online platforms, including enhanced seller transparency, efficient notice-and-action mechanisms, and increased accountability for illegal listings.
By requiring platforms to verify business users, act swiftly on reports of infringing content, and suspend repeat offenders, the DSA not only improves enforcement but also helps deter bad actors from abusing digital services. Moreover, mandatory transparency reporting sheds light on how platforms handle illegal content, reinforcing public trust and enabling regulators and rights holders to monitor progress effectively.
Importantly, the DSA acknowledges that regulatory tools alone are not enough. The collaboration between digital platforms and intellectual property rights (IPR) owners plays a pivotal role in strengthening enforcement and ensuring swift detection and removal of counterfeits. By sharing data, improving product authentication technologies, and recognizing "trusted flaggers," platforms and IPR holders can work together to build a safer and more trustworthy digital marketplace, where consumers can shop with confidence and innovation is protected.
In this way, the DSA marks not only a legal shift but also a cultural transformation in platform responsibility, laying the groundwork for a digital ecosystem that prioritizes fairness, transparency, and consumer safety across the European Union.
Footnotes
2 https://ec.europa.eu/commission/presscorner/detail/en/ip_24_5622
3 https://digital-strategy.ec.europa.eu/en/policies/dsa-vlops
4 https://ec.europa.eu/commission/presscorner/detail/en/ip_24_2326
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