Committee publication · Correspondence · 30 June 2026
Additional evidence from Chartered Trading Standards Institute relating to Consumer protection
From: Business and Trade Committee
Inquiry: Consumer protection
Summary
The Chartered Trading Standards Institute (CTSI) submits written evidence to the Business and Trade Committee detailing regulatory requirements for online marketplaces to protect consumers. CTSI proposes a comprehensive legal framework imposing duties on marketplaces to verify sellers, monitor and remove unsafe products, cooperate with regulators, maintain UK representation, and face substantial financial penalties for non-compliance.
Key findings
- Marketplaces must obtain, verify, and regularly update seller information, preventing listings until verification is complete and bear responsibility for verification failures
- Legal duty required for proactive monitoring and rapid removal of unsafe products, with risk-based systems and prevention of relisting of dangerous items
- Establish statutory minimum baseline of obligations applying to all marketplaces, avoiding vague terms like 'due care' and replacing guidance-only approaches with enforceable legal duties
- Regulators need substantial enforcement powers including fines up to 10% of global turnover, ability to suspend marketplace categories, and require destruction of non-compliant products at marketplace cost
- Marketplaces must establish UK presence or appoint UK-based legal representative with clear accountability; critical safety information must remain on physical product packaging, not digital only
Tone
ProceduralTopics
Key actors
Chartered Trading Standards Institute (CTSI), Business and Trade Committee, Trading Standards Officers, Online marketplaces, All-Party Parliamentary Group on Consumer Protection
Notable line
“Marketplaces should be responsible if they fail to verify seller information • Marketplaces must contact affected consumers directly where necessary Proactive …”
Key Quotes
“… legal requirement for marketplaces to: o Obtain, verify, and regularly update seller details o Prevent sellers from listing unless verification is complete o Monitor recalls and product …”
“Avoid reliance on vague terms such as "due care" or "within the limits of their activities" • Use guidance only to …”
“Acknowledge that similar products may carry the same risks as those that have been found unsafe until verified.”
“Critical safety information remains on the product or packaging o Digital information is an additional layer only • Safeguards for: o Vulnerable …”
“Regulators must have powers to: o Issue substantial fines (e.g. up to 10% of global turnover) o Quickly remove listings and suspend sellers o Require corrective action and system improvements o Require fulfilment centres …”
“To enable Trading Standards Officers to work from a single, coherent framework – as fragmented legislation”
Source · parliament.uk record ↗