Proliferation of e-store fraud
A few days ago the Ministry of Development proceeded to impose a fine of 120,000 euros on an online store based in Larissa and at the same time suspended the operation of the store in question, as this possibility is now provided for by consumer protection legislation.
Still, even if the fraud becomes widely known – first mainly through related reports on special consumer forums or forums for technological products – or even if the ministry imposes a fine and shuts down the operation of the online store, fraudsters are not deterred. They immediately set up another one, or rather have it ready by the time the negative reviews on social media begin. Usually the new store appears to be under a different owner and with a similar brand name. In the last identified occurrence, that in Larissa, the same owner, same headquarters and a similar brand name have appeared.
Based on the new European Union regulation on the single market for digital services, the possibility of intervention is estimated to be even faster, as the competent authority will be mandated directly.
The big explosion of fraud cases, and indeed of this type, happened at the same time as the explosion of electronic sales in 2020-2021. In 2020, the Ministry of Development imposed fines of more than €1.7 million on 15 online stores, while in that year the relevant reports to the Consumer Ombudsman constituted about 25% of the total, having more than doubled compared to 2019.
In 2022, according to the Consumer Ombudsman's latest report, there were a total of 3,004 reports on consumer goods (22.5% of the total), of which 27.2% were related to the delivery of the goods (or rather their non-delivery). Notably, about 18.04% of the reports were related to e-commerce.
The reports mainly concerned, according to the Ombudsman, websites that display branded products at unusually low prices. In this case, there are two possible frauds: Either the customer places an order and does not receive it, or the product he receives is an imitation of the original brand he has paid for.