Observed Signal · Nov 4, 2020 · Regulation · Source: OnlineMarketing.de · Impact: 2/5 · Sentiment: Neutral
Germany pushes for Amazon and eBay transparency
Germany's Federal Ministry of Justice published a draft law proposing new transparency requirements for online retailers and marketplaces. The draft would obligate platforms like Amazon and eBay to disclose essential information about how product rankings are determined on their sites and to codify future contractual terms with e-commerce platforms. It follows an EU directive to be transposed into German law. The ministry argues that users should be able to see whether offers come from businesses or private individuals, especially on marketplaces like eBay, to increase transparency. The plan also includes an update obligation for pricing, enabling users to understand the pricing algorithm and to be notified when prices are adjusted by automated decisions. In a second measure, Justice Minister Christine Lambrecht indicated that consumer rights should extend into the digital space, requiring sellers to provide free security updates and functional app updates, though the duration of the obligation is not specified.
Regulatory draft affecting e-commerce platforms and pricing transparency
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Key Takeaways & Evidence Grounding
- Draft law proposed by the German Federal Ministry of Justice to increase transparency for online retailers and marketplaces
- Legislation would require platforms like Amazon and eBay to disclose ranking criteria and inform whether offers come from businesses or private individuals
- German law would implement an EU directive governing transparency in product rankings and pricing
- Pricing transparency would allow users to understand pricing algorithms and receive notices if prices change due to automated decisions
- A second draft aims to extend consumer rights to the digital space, mandating free security updates and maintenance updates for software/apps, without specifying duration
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