French Consumer Watchdog Targets Wish Over Counterfeit and Pricing Concerns
The French Directorate General for Competition, Consumer Affairs, and Fraud Control (DGCCRF) has launched an investigation into Wish, the mobile e-commerce platform that recently filed for an IPO. Despite generating $1.9 billion in revenue in 2019, the platform faces allegations of selling counterfeit products and employing deceptive pricing tactics.
Key Allegations Against Wish
Counterfeit Goods: The DGCCRF suspects Wish of listing products—including sneakers and perfumes—with misleading imagery that falsely displays logos of well-known brands.
Deceptive Discounts: The platform allegedly advertises steep discounts (e.g., -70%, -80%, or -90%) on items where the “original” prices appear fabricated, creating a false sense of urgency and value.
Legal Proceedings Underway
The DGCCRF, which operates under France’s Ministry for the Economy and Finance, has submitted its findings to a Paris court. The court will now determine whether Wish is liable for these violations.
French Digital Minister Cédric O stated:
“The court can subpoena Wish or offer a plea deal. We expect a decision soon.”
Previous Controversies Resurface
Minister O also highlighted Wish’s history of questionable practices, including the sale of non-compliant face masks during France’s first COVID-19 lockdown. In a Twitter post, he warned consumers:
“French users seeking low-cost items should know they’re likely encountering scams.”
Potential Consequences for Wish
If found guilty, Wish could face fines of up to 10% of its annual revenue in France. A critical aspect of the case will be whether Wish bears responsibility for third-party sellers on its platform.
Broader Implications for E-Commerce
The investigation coincides with the upcoming EU Digital Services Act, which aims to modernize e-commerce regulations. While much attention has focused on content moderation, the case underscores the need for stricter oversight of counterfeit goods and marketplace accountability.
Why This Matters: As Wish prepares to go public, these allegations could impact investor confidence and prompt tighter scrutiny of global e-commerce platforms.
For further details, refer to the DGCCRF’s official report.
