Chapter 3|Due Diligence Obligations - Online Marketplaces|📖 9 min read
1. The Commission, in cooperation with the Member States, shall design and put in place a database containing information on traders for which data has been obtained pursuant to Article 30, which shall be accessible to all providers of online platforms allowing consumers to conclude distance contracts with traders and to the Commission and Member States' authorities with competences relating to the requirements of this Section.
2. In accordance with paragraph 1, providers of online platforms allowing consumers to conclude distance contracts with traders shall transmit to that database, on a periodic basis and through electronic means, all information referred to in Article 30(1) which they hold for each trader. They shall also transmit without undue delay any updates to that information and any suspensions imposed pursuant to Articles 23 and 30(4), including the reason for the suspension.
3. The information made available in the database shall be used only for the purposes of ensuring and monitoring compliance by traders with Union law applicable to the sale of products or the provision of services, and for the sharing of information among providers of online platforms allowing consumers to conclude distance contracts with traders and the competent national authorities. Any information made available in the database shall be stored for a period not exceeding six months following the suspension, withdrawal or termination of the provision of intermediary services by the provider of online platforms to the trader concerned.
4. The Commission shall adopt implementing acts laying down the detailed arrangements for the functioning of that database, including the specific technical specifications for the transmission of information, the updates and suspensions referred to in paragraph 2, the data structure, the authentication and access rights, and the arrangements for cooperation with Member States for the use of that database. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 88(2).
Understanding This Article
Article 32 creates the digital infrastructure backbone for EU-wide marketplace enforcement - a centralized database connecting Articles 30-31's individual platform obligations into a cross-platform trader accountability system. This is the DSA's answer to the 'platform hopping' problem: when Amazon suspends seller for dangerous products, that seller shouldn't simply move to eBay or Etsy and continue selling. The database enables all marketplaces and authorities to see trader verification status, compliance history, and suspension records.
Paragraph 1 mandates Commission establishment of the database 'in cooperation with Member States', containing Article 30 information (trader names, addresses, contacts, IDs, payment accounts, trade registrations, compliance certifications). The database must be 'accessible to all providers of online platforms allowing consumers to conclude distance contracts with traders' - meaning every marketplace can query it. It's also accessible to Commission and national authorities with enforcement competences.
Paragraph 2 establishes marketplace reporting obligations. Platforms must transmit to database: (1) all Article 30 trader information 'on periodic basis and through electronic means' (likely automated API submissions), (2) updates to trader information 'without undue delay', and (3) any suspensions imposed under Article 23 (measures against misuse - serial violators) or Article 30(4) (verification failure) 'including the reason for suspension'. This creates real-time suspension tracking - when Amazon suspends seller for counterfeit products, that suspension immediately appears in database, visible to all other marketplaces.
Paragraph 3 defines permitted uses and retention: database information 'shall be used only' for ensuring/monitoring trader compliance with EU product and service laws, and information sharing among platforms and authorities. The use limitation protects against function creep - database can't be used for unrelated purposes like marketing analytics or general surveillance. Data retention is limited: information stored maximum 6 months after 'suspension, withdrawal or termination' of platform-trader relationship. This mirrors Article 30's 6-month retention requirement while acknowledging suspension records need brief retention for cross-platform enforcement.
Paragraph 4 delegates technical implementation to Commission implementing acts: detailed database functioning arrangements, technical specifications for data transmission, data structure, authentication and access rights, cooperation arrangements. This recognizes Article 32 establishes policy framework, but technical specifications (API protocols, data schemas, security measures) require separate detailed regulation.
Article 32 transforms marketplace oversight from isolated platform-by-platform enforcement to connected EU-wide system. Pre-DSA, dangerous seller suspended by Amazon could immediately register on eBay, Etsy, or smaller platforms under same or different identity. Post-DSA Article 32, that suspension is recorded in database, enabling other platforms to: (1) see trader's suspension history before onboarding, (2) receive alerts if currently-verified trader gets suspended elsewhere, (3) coordinate enforcement with other platforms and authorities. This is 'network effect' for compliance - the more marketplaces participate, the more effective trader accountability becomes.
Key Points
Commission must establish EU-wide database containing Article 30 trader verification information
All marketplaces must submit trader data to database periodically (electronically)
Must report trader suspensions (Articles 23, 30) including reasons
Database accessible to: all marketplaces, Commission, Member State authorities
Purpose: ensure trader compliance with EU laws, share information across platforms
Data stored maximum 6 months after trader relationship ends
Enables cross-platform enforcement - bad actors can't evade by switching platforms
Commission to adopt implementing acts with technical specifications
Practical Application
For Commission (Database Operator): Commission must build centralized EU database system ('EU Trader Compliance Database' or similar) with: (1) Secure API endpoints accepting trader data submissions from marketplaces (standardized JSON/XML format); (2) Authentication system verifying marketplace identity and permissions; (3) Data structure accommodating Article 30 fields: trader name, address, contact, ID documents, payment accounts, trade registration, compliance certification; (4) Suspension tracking module recording Article 23/30 suspensions with reasons, dates, and resolving platform; (5) Query interface enabling marketplaces to check trader status before onboarding; (6) Authority access portal for national regulators to monitor compliance and investigate traders; (7) Automated retention enforcement: delete trader records 6 months after relationship termination; (8) GDPR compliance measures: encryption, access logging, data minimization, breach notification; (9) Multilingual support for 24 EU languages; (10) Technical documentation and integration guides for marketplaces. Build phase: 2023-2024. Launch coordinated with DSA enforcement timeline February 2024.
For Amazon (Large Marketplace Integrating): Amazon must integrate with EU database: (1) Build API client submitting all EU trader verification data on periodic basis (daily or weekly automated uploads); (2) Real-time integration: when seller completes Article 30 verification, submit data to database; when seller suspended, immediately report suspension with reason; when seller information updated, push update; (3) Pre-onboarding database query: before activating new seller account, check EU database for suspension history - if trader suspended on eBay for dangerous products, flag for enhanced review or deny onboarding; (4) Ongoing monitoring: receive database notifications when currently-active seller gets suspended on other platform, trigger investigation; (5) Seller dashboard transparency: inform traders that verification information shared with EU database and other platforms; (6) Data quality assurance: validate data before submission, ensure consistency between Article 30 records and database entries; (7) Security: encrypt data in transit, use certificate authentication, log all database interactions; (8) For 2+ million EU traders, initial bulk upload of existing verification data, then incremental daily updates. Integration investment: significant engineering resources for API development, testing, security, ongoing maintenance.
For eBay (Established Marketplace): eBay faces transition challenge - existing 17+ million sellers need retroactive verification and database submission. Phased approach: (1) Implement database integration: API client, automated submissions, suspension reporting; (2) Prioritize high-risk categories: electronics, toys, cosmetics sellers verified first and submitted to database; (3) For new seller onboarding, query database checking suspension history across other platforms - if applicant was suspended by Amazon for counterfeits, require additional verification or deny; (4) Re-verification program for existing sellers: gradually require Article 30 verification for legacy accounts, submit to database once verified; (5) Cross-platform collaboration: when eBay identifies dangerous seller, suspension reported to database makes that seller visible to Amazon, Etsy, Vinted, all other platforms; (6) Authority cooperation: when French regulator requests information about specific seller, provide not just eBay data but suggest querying database for seller's activity across multiple platforms; (7) Seller notification: update terms explaining data sharing with EU database and other marketplaces. Database transforms eBay from isolated enforcement to EU-wide network participant.
For Etsy (Artisan Marketplace): Etsy's 5+ million global sellers include many EU-based artisans and non-EU sellers targeting EU consumers. Database integration approach: (1) Identify EU-scope sellers: those located in EU or selling to EU consumers - submit these to database; (2) Build database API integration with Etsy's existing seller verification systems; (3) Pre-onboarding checks: query database when new shop opens - if artisan previously suspended by other marketplace for unsafe handmade products (e.g., children's toys with choking hazards), flag for review; (4) Suspension coordination: when Etsy suspends seller for REACH non-compliance (e.g., jewelry with illegal nickel levels), report to database alerting other platforms; (5) Seller education: inform artisans that compliance records shared across EU marketplaces, incentivizing quality and safety; (6) Small seller consideration: ensure database integration doesn't impose disproportionate burden on micro-business artisans - automate data submission, minimize seller-facing complexity; (7) Legitimate business building: positive compliance history in database could become 'compliance credential' - artisans with clean records can leverage this when joining new platforms. Transform database from enforcement tool to trust infrastructure.
For Vinted (Peer-to-Peer Secondhand Platform): Vinted's model focuses on consumers selling used items, with smaller professional trader population. Database approach: (1) Trader classification system identifying professional sellers (vs occasional consumer sellers) - only professionals subject to Article 30 and database submission; (2) Submit professional trader verification data to database; (3) Query database when user crosses into professional seller threshold (e.g., >50 monthly listings) - check for suspension history on other platforms; (4) Suspension sharing: if Vinted suspends professional seller for repeatedly selling counterfeit designer clothing, report to database; (5) Consumer protection: occasional sellers NOT included in database (would be disproportionate privacy intrusion for person selling used baby clothes); (6) Cross-platform patterns: database enables identifying traders operating across multiple platforms - e.g., person selling counterfeit luxury goods on Vinted, eBay, and Etsy simultaneously can be identified through database cross-referencing. Balance between marketplace openness and accountability.
For AliExpress (Cross-Border Platform): AliExpress's Chinese-seller-to-EU-consumer model creates unique database considerations: (1) All sellers targeting EU consumers must be verified per Article 30 and submitted to database, regardless of seller location; (2) Enhanced verification for non-EU traders: request additional documentation, verify through international databases; (3) Database query before onboarding: check if Chinese seller previously suspended by other EU marketplaces for non-compliant products; (4) Customs integration opportunity: database could coordinate with EU customs systems identifying high-risk traders before products enter EU; (5) International enforcement cooperation: when AliExpress suspends Chinese seller for dangerous electronics, database makes this visible to all EU marketplaces, preventing that seller from accessing EU consumers through other platforms; (6) Language challenges: ensure Chinese seller verification documents properly translated and formatted for database; (7) Geopolitical dimension: Article 32 database represents EU asserting regulatory jurisdiction over global commerce - non-EU platforms must comply with EU information sharing to access EU market. Transform cross-border commerce from regulatory arbitrage opportunity into compliance obligation.