AliExpress fined over $625M for failing to remove unsafe products

The European Commission has imposed a fine exceeding $625 million on AliExpress, marking the largest penalty to date under the Digital Services Act (DSA). The Commission found that the e-commerce platform failed to diligently assess and mitigate the risks associated with the sale of illegal, unsafe, or counterfeit products.

An investigation revealed that AliExpress lacked sufficient staff dedicated to removing dangerous items, and its existing content moderators were given very limited time to evaluate flagged products. This resulted in millions of items reappearing online after being flagged, sometimes remaining for over a month. The platform's safeguards were easily circumvented by sellers who miscategorized products to avoid mandatory checks. Furthermore, AliExpress's mandatory brand authorization system was found to be ineffective and understaffed, with inadequate penalties for traders selling illegal goods.

The Commission also noted that AliExpress inadequately assessed how its recommender and advertising systems amplified the spread of illegal products, effectively recommending them to consumers. European Union's tech chief Henna Virkkunen highlighted that a significant portion of Europeans shop monthly on such retail sites. AliExpress relied on a single metric to track its efforts against illegal products, which did not accurately measure the extent of harm caused by the continued circulation of unsafe toys and dangerous cosmetics.