Bargain hunters beware: the dangers of online shopping on cheap platforms

Consumers should always be aware that low prices, whether in online or brick-and-mortar shopping, often come with problems in terms of quality, safety, data protection and transparency. To minimize risks, it is advisable to get comprehensive information before buying, to read reviews from other buyers and, if necessary, to fall back on trustworthy, established platforms or branded products. A clever shopping strategy not only takes the price into account, but also the quality and safety of the products, as well as the supplier.

1. Quality issues

One of the most obvious disadvantages of low-cost platforms is the quality of the products. Many items offered at very low prices do not meet European safety and quality standards. The greatest danger comes from poor quality resulting from savings in materials and workmanship. If, for example, the cables in electrical products are too thin, the casing insufficiently insulated and the fixings inadequately secured, these defects can lead to life-threatening electric shocks, overheating or fires.

2. Data protection and security risks

Another risk is the insecurity in the handling of personal data. Platforms like TEMU store a large amount of sensitive information, including names, addresses and bank details. It is not always clear exactly how this data is stored and processed. There are concerns about data protection, especially since many of these platforms come from countries where data protection laws are less strict than in the EU. This increases the risk of data misuse, identity theft or phishing attacks.

3. Unclear return and warranty conditions

A common problem with low-cost platforms is the complexity and lack of transparency when it comes to return and warranty conditions. If a product does not meet expectations or is already defective when it arrives, the return process is often lengthy and difficult. In many cases, the buyer is dependent on international shipping, which can result in high costs and long waiting times. Likewise, the guarantee is difficult to enforce in many cases, since many of the providers are based outside the EU and do not always recognize European consumer rights.

4. Customs duties and hidden costs

An often-overlooked aspect of buying products on low-cost platforms is possible customs duties and additional shipping costs. Many of the products offered on these platforms come from Asia or other countries outside the EU. This means that additional costs may be incurred that only become apparent after purchase. Customs duties, taxes and shipping fees can significantly increase the final price and negate the supposed bargain.

5. Fraud and counterfeit products

Another danger that should not be underestimated is the risk of fraud and counterfeit products. Since the platforms sell large quantities of items, it is possible that you will receive counterfeit products or goods that differ greatly in description from actual quality and functionality. Often, these scams are difficult to prove because the sellers are based in countries where it is difficult to take legal action.

6. Poor working conditions and environmental pollution

Many products offered at low prices come from production facilities in countries with low wages and poor labor standards. Reports of poor working conditions, exploitation and environmental pollution in the manufacturing of cheap goods are not uncommon. By shopping on these platforms, you could unknowingly support companies that disregard human rights and environmental regulations.

7. Counterfeits and trademark infringement

Another problem with low-cost platforms is the sale of counterfeits or products that violate trademark rights. There are numerous reports of consumers buying items on TEMU or similar platforms that are supposedly branded products.  In reality, however, they are copies or counterfeit goods. This particularly affects fashion, electronics and cosmetic products. Buying such items can not only be disappointing, but also have legal consequences.

8. Unclear origin of products

With low-cost platforms, it is often not clear where the products really come from. While the items are usually advertised as ‘new’ and ‘high quality’, there is little information about whether they are actually new or whether they come from unsafe sources. Sometimes they are residual items, rejects or returned items that are sold at a significantly reduced price.

The often higher purchase price of branded products results not only from the use of high-quality materials and good workmanship, but also from the independent confirmation of safety and quality by an externally commissioned and independent testing institute. For electrical products, the VDE mark is a special distinction and an important component of consumer protection. Relevant neutral organizations recommend the VDE mark as an indication of safe products that can be used without hesitation. By investing in testing and certification, all parties involved – manufacturers, processors, importers, distributors and consumers – can be sure that the product is safe, with low liability risk, few follow-up costs, a high competitive advantage and independently verified quality. We would like to take this opportunity to emphasize once again that the CE mark is not a safety mark! With this mark, the manufacturer merely declares independently that their product meets the requirements of the European directives – this may or may not be true.

Over the past few years in our consumer protection work, we have observed the growing realization that you get what you pay for, as well as the growing need for safety and transparency. The trend for consumers to increasingly turn towards imported cheap products is also sure to change. Because even the biggest bargain hunter will realize soon enough that cheap appliances that have to be bought again and again due to their short lifespan will ultimately end up costing more than the one-off purchase of a more expensive but higher quality product. And in such a case, independent safety marks have an important role to play.

VDE Verband der Elektrotechnik Elektronik Informationstechnik e.V. and its affiliated companies (hereinafter each “VDE”) provide non-binding information on consumer protection topics. These publications are intended solely to raise general awareness of consumer protection in relation to electrotechnical products and issues. They expressly do not constitute professional or technical advice. The information is provided the best of one's knowledge and belief without having evaluated the actual conditions at a specific location or of a specific product.

While VDE makes every reasonable effort to ensure that the information is correct and complete, it cannot assume liability nor any warranty (neither explicitly nor implicitly) for the correctness, completeness or topicality of the content of the information provided.

The information may only be applied with the understanding that VDE cannot be held liable for any direct or indirect damage or loss of any kind. The use of the information provided does not release the user from the responsibility for his/her own actions and is therefore at his/her own risk.

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