A French administration in command of shopper rights and fraud has investigated on Wish, the cellular e-commerce platform that recently filed to go public. Whereas the corporate generated $1.9 billion in income in 2019, the French administration believes Want may very well be promoting merchandise, equivalent to sneakers and perfumes, with photos incorrectly displaying the logos of well-known manufacturers.
Along with these wrongly labeled merchandise, the administration says Want pretends merchandise are on sale whereas they aren’t. The platform may very well be displaying -70%, -80% or -90% on some merchandise despite the fact that the unique worth is totally made up.
The administration in command of the investigation is the path générale de la concurrence, de la consommation et de la répression des fraudes (DGCCRF), an administration that experiences to the French Ministry for the Economic system and Finance. They’ve transmitted the report to a courtroom in Paris.
Now, it’s as much as the courtroom to resolve whether or not the allegations are proper or unfounded. “The courtroom can subpoena Want or provide to plead responsible. We should always know within the coming days,” France’s digital minister Cédric O advised me.
On Twitter, Cédric O highlighted one case particularly. “Want already stood out throughout the first lockdown by promoting facemasks that don’t meet security requirements. French people who find themselves utilizing the app to seek out low-cost merchandise ought to know that they’ll principally discover scams,” he tweeted.
If Want is discovered responsible, the corporate may danger as much as 10% of its annual income in France. Particularly, it’s going to be fascinating to see whether or not Want is answerable for merchandise bought by third-party retailers.
The timing of the case is a bit odd as Europe’s upcoming Digital Companies Act ought to overhaul the e-commerce directive from 2000. All eyes are on content material moderation, however the Digital Companies Act also needs to deal with counterfeit sellers, the legal responsibility of marketplaces and extra.