Dropshipping often gets bad press from the media and consumers. The reason? A number of dropshippers who wanted to use this online sales system without respecting the regulations in force. To put an end to the misconceptions about dropshipping, HAAS Avocats answers all your questions in this exclusive interview about legal dropshipping.

HAAS Avocats is specialized in e-commerce. With its experience as a member of the GESICA network since 1999, HAAS Avocats offers a dedicated service to its international clients concerning the law applicable to e-commerce, new technologies and e-marketing. The GESICA network counts no less than 220 law firms spread all over the world. What to have a clear and precise vision of the development of dropshipping in France and in the rest of the world…

Is dropshipping legal?

Nothing prohibits dropshipping, but this activity is regulated by the French Consumer Code, which specifies the legal framework of distance selling.

As such, it is reminded that no unfair commercial practice (misleading or aggressive) should be committed by the dropshipper.

What is an unfair commercial practice? It is any practice that could deceive the consumer. It can be, for example, false information about the quality of the product sold. It can also be a practice that alters the free consent of the consumer to purchase a product, such as a false promotion.

Concerning dropshipping, there are multiple complaints of deceptive business practices. This is where the problem lies. Indeed, a certain number of unscrupulous dropshippers have given in to the siren song of easy selling, with the application of a very high commercial margin for the sale of poor quality products presented as revolutionary.

In other words, some e-commerce sellers offer poor quality products from China for sale at far too high prices on their online store. With a high price, the consumer can legitimately think that the product he is buying is of good quality.

However, a number of consumers have felt aggrieved when they realized the very large gap between the real estimated value of the product they received and the price they paid to the dropshipper.

Other e-commerce sellers pay influencers to present low-quality products in their best light, by embellishing the real merits of these products. On this point, it is also a question of commercial practices misleading the consumer, which are consequently illegal.

In order to avoid criminal sanctions, a dropshipper must be as transparent as possible with his customers. In other words, it is not advisable to sell poor quality products at a high price.

As dropshipping is a completely legal way of marketing, the e-commerce seller has every interest in carefully choosing his suppliers to guarantee his customers quality products. The dropshipper will thus be able to gain the full confidence of his customers while applying a reasonable commercial margin.

Another important point: it is advisable to warn customers of the delivery times which are often longer for products shipped directly from China. Thus, a consumer will not be able to blame a dropshipper for misleading him on the estimated delivery time or on the origin of the product shipped.

What are the legal obligations of the dropshipper?

The dropshipper must respect all the obligations related to distance selling.

From the point of view of consumer law, the dropshipper must, for example

– join a consumer ombudsman and indicate the ombudsman’s contact details to his customers;

– implement the exercise of the right of withdrawal in accordance with the applicable legislation.

This information must be included in the general terms and conditions of sale (GTC) that must be presented to the customer who wishes to place an order.

Remember that the dropshipper is responsible for the execution of the sale, from the placing of the order to the delivery of the products. Indeed, the supplier’s or the deliverer’s failures do not exonerate the dropshipper from his responsibility towards his consumer customer.

Therefore, if there is a delivery problem between the country where the product is shipped and the customer’s address, it will be up to the dropshipper to provide customer service and to offer a refund to the customer who did not receive the product in time.

Moreover, the dropshipper will have to make sure to indicate on his website the mandatory mentions.