ACM calls on online sellers and trade associations to check their rights in the P2B Regulation
The Netherlands Authority for Consumers and Markets (ACM) calls on business users that sell products or offer services through online platforms to check if those platforms are acting in accordance with the Platform-to-Business (P2B) Regulation. Trade associations, too, could remind their members of the P2B Regulation more often. According to an ACM study, two in three online business users are not familiar with the rights laid down in this regulation. For instance, online platforms must be transparent and use clear general terms and conditions, so that business users know what they can expect in the online environment.
The P2B Regulation already entered into force in 2020, and it should provide more clarity and transparency for business users about the behavior of online platforms and online search engines. The P2B Regulation forces online platforms to apply clear general terms and conditions, which, moreover, must be easy-to-find and easy-to-understand.
ACM is the regulator-designate for the P2B Regulation. In preparation for its oversight, ACM has conducted a study into what business users currently experience regarding general terms and conditions of online platforms and how these platforms handle complaints. The study shows that two in three business users are not aware of the regulation at all, and are therefore also unaware of their rights and how they can exercise these. At the same time, the study shows that business users have actually had experiences that are not in line with the regulation.
For instance, online platforms must explain in their general terms and conditions what the reasons are for, for example, terminating a business account or suspending products or services offered by a trader. Moreover, when terminating or suspending an account, platforms must explain to the trader in question why it did so. Also, they have to indicate what the most important factors are that determine the ranking on their platforms. And if business users do not agree with the platforms’ choices, they must be able to file complaints easily.
Study suggests that not all platforms are in compliance
ACM’s study was held among 400 business users that offer services or sell products on four platforms. It revealed that, in many cases, it is going well, and that most business users are satisfied about the way they are treated by the platforms. On the other hand, ACM has also identified several bottlenecks.
For instance, one in four business users indicate that they are dissatisfied or very dissatisfied with the way they are treated by the platform. Furthermore, 27% of business users that have experienced suspension, restriction, or termination at least once in the last two years had never received any explanations from the platforms in advance about the reasons why. Also, after reading the general terms and conditions, 20% of business users found it unclear or very unclear what these terms and conditions meant for them.
In the meantime, it is also revealed that not all business users are aware that they are able to use complaints-handling systems or go to a mediator. The larger online platforms are required to offer these options.
That is why ACM calls on business users to check what the P2B Regulation can mean for them, and what online platforms have included in their general terms and conditions. Trade associations, too, could remind their members of the P2B Regulation more often. If business users believe that the P2B Regulation is not properly complied with, they can file a report with ACM, so that ACM, with all of these reports, is able to prepare itself properly for its role as regulator when ACM is officially granted that power.
Business users that wish to know more about their rights laid down in the P2B Regulation may contact ACM for more information during the Webwinkel Vakdagen (trade show for online stores) on 23 and 24 January 2024.