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UK may impose direct liability on marketplaces over unsafe goods

EUROS Newsroom · 1h ago · 2 min read
UK may impose direct liability on marketplaces over unsafe goods

The discovery of 150 unsafe baby products across eight major online marketplaces has triggered UK government warnings that platforms could soon face direct legal liability for third-party seller goods.

Which? identified 150 recalled or officially warned-against baby products listed by third-party sellers across eight major online marketplaces. The platforms included Amazon, eBay, Alibaba, AliExpress, Etsy, TikTok, OnBuy and Wish.

The items comprised 59 sleeping bags with hoods or without armholes, 37 newborn sleep pillows, and dozens of self-feeding bottle devices. These feeders included 33 with long straws and 21 pillow bottle-holders designed to fasten around a baby's neck, all carrying an obvious choking hazard.

For investors and executives, the core significance lies in the regulatory fallout. The findings escalate pressure on the UK government to deploy its new Product Regulation and Metrology Act to make digital marketplaces directly liable for third-party goods.

"The government must urgently use the new powers it has under the Product Regulation and Metrology Act to impose a clear legal duty on online marketplaces for ensuring the safety of products sold through their third-party sellers, with tough enforcement for those that fall short," said Sue Davies, head of consumer protection policy at Which?.

The Department for Business and Trade signalled it is aligned with this stricter interpretation. "It's not enough for companies to act when such products are flagged - they have an obligation to proactively stop unsafe products making their way onto their sites in the first place," a spokesperson said.

Shifting from a reactive takedown model to proactive legal liability would fundamentally alter the risk profile for e-commerce platforms. It threatens to substantially increase compliance costs and limit the scalability of third-party marketplace networks that drive significant corporate revenues.

The platforms have moved quickly to contain the immediate reputational damage. Amazon, Alibaba, AliExpress, eBay, Etsy, TikTok and OnBuy all confirmed they removed the flagged listings. eBay noted it uses "technology, AI and expert teams" to police its site, while Amazon stressed it takes "swift action when alerted."

However, the fact that these 150 products remained listed despite prior Office for Product Safety and Standards alerts—some dating back to 2022—highlights the operational difficulty of policing vast seller networks. For the market, the investigation serves as a catalyst for long-awaited regulatory action that could reshape platform accountability in the UK.