A French administration in charge of consumer rights and fraud investigated Wish, the mobile e-commerce platform that recently filed for an IPO. While the company generated $ 1.9 billion in revenue in 2019, the French administration believes Wish could sell products, such as sneakers and perfumes, with images incorrectly showing the logos of famous brands.
In addition to these mislabelled products, the administration claims that Wish claims the products are on sale when they are not. The platform may show -70%, -80% or -90% on some products even though the original price is fully compounded.
The investigating authority is the Directorate-General for Competition, Consumer Affairs and Fraud Control (DGCCRF), administration attached to the Ministry of the Economy and Finance. they transmitted The report before a Paris court.
Now it is up to the court to decide whether the allegations are founded or not. “The court can subpoena Wish or offer to plead guilty. We should find out in the next few days, ”the French digital minister, Cédric O, told me.
On Twitter, Cédric O highlighted one case in particular. “Wish has already stood out during the first containment by selling masks that do not meet safety standards. French people who use the app to find cheap products should know that they will mostly find scams, ”he tweeted.
If Wish is found guilty, the company could risk up to 10% of its annual revenue in France. In particular, it will be interesting to see if Wish is responsible for products sold by third party merchants.
The timing of the case is a bit odd, as the next EU digital services law is expected to revise the 2000 e-commerce directive. All eyes are on content moderation, but the digital services law should also focus on counterfeit sellers, market liability and more. .