Etsy is advising business sellers that a new consumer protection directive passed in the European Union may impact their business on the marketplace.
This directive requires professional sellers who ship to the EU to identify themselves to buyers as “traders.”
Under EU law, traders are required to provide the right to withdraw to their consumers (also known as “right of withdrawal”). Some exclusions apply, such as customized, made-to-order, and digital items.
Etsy sellers who set up their shop as a business when they registered for Etsy or Etsy Payments, may be considered a “trader” under the directive.
The definition of a “trader” under this directive may vary depending on which country in the EU the seller ships to.
Etsy recommends that sellers reach out to a legal advisor if they have questions regarding their classification or how each country’s rule may apply to them.
Sellers which buyers in the EU, and are considered a professional seller (or trader), should take the following steps to comply with EU laws if they wish to continue to sell in the EU:
- Adjust return policies in the Settings section of the Shop Manager to offer a minimum of 14-day returns to adhere to the “right to withdrawal.”
- Add contact information in the seller details section underneath return policies. By doing so, Etsy will automatically display “trader” status and the required contact information on the seller’s listings.
- If a seller set up their Etsy shop up as a business when registered for Etsy or Etsy Payments, the marketplace will automatically add “trader” status to all their listings. Sellers may switch off “trader” status if they don’t believe these regulations apply to them.
For sellers who are unable to comply with these regulations, Etsy recommends they adjust their shipping profiles to no longer ship to buyers in the EU.
Etsy Sellers can learn more about the EU Omnibus Directive here
Etsy New EU Regulations FAQ
Etsy has provided the following FAQ to help sellers with the most common questions regarding this new directive.
Q: Who does this apply to?
A: This law applies to any “traders” that ship to the EU, which may include, but is not limited to, business sellers, professional sellers, or incorporated businesses. If an Etsy user set their Etsy shop up as a business when they registered for Etsy or Etsy Payments, they may be considered a “trader” under EU laws.
This is an EU directive and Etsy will try and help sellers navigate their Etsy shop, but if sellers have any legal questions or concerns about whether this applies to them, they should contact a legal advisor.
Q: How do I know if I’m a professional seller or “trader”?
A: The definition of a trader under this directive may vary depending on which countries in the EU a seller ships to. If unsure, Etsy recommends reaching out to a legal advisor.
Q: What if I want to sell to EU consumers but can’t offer a 14-day return policy?
A: The EU Omnibus Directive has gone into effect. As a result, all eligible businesses are required to offer EU buyers a 14-day “right of withdrawal” in the form of a returns policy.
While EU law requires that businesses offer returns, how sellers process them is up to them. For example, sellers can ask buyers to cover the cost of returns and exchanges if applicable.
Q: What types of items are excluded?
A: This directive excludes made-to-order and customized items, digital items, certain perishable goods, and goods that can’t be reused for health or hygiene reasons and are unsealed after delivery.
Q: What kind of information will be shown to buyers?
A: As part of this directive, traders are required to display information to buyers, such as their name, location, and contact information. Only buyers in EU countries will be able to see these details on a trader’s shop page.
Q: How is my information protected? How can Etsy minimize abuse of my contact info?
Etsy says it respects the privacy of sellers. The company will not disclose a seller’s name, email address, or other personal information to third parties without their consent, except as specified in this policy. Sellers can learn more about the company’s privacy information here: https://www.etsy.com/legal/privacy
Note: This directive has passed and is supposed to be in force since May 28, 2022. Sellers should act on this information ASAP to avoid any issues.
German Packaging Law
In addition to this new EU Directive, Germany has also implemented a new packaging law that will impact non-EU sellers starting on July 1, 2022.
Sellers who plan to continue to sell to Germany should read through this information and the links provided within to understand their responsibility to comply with these regulations.
Connect with us: Head over to our Facebook Group for Small Business Sellers and interact with other small business owners.
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