The company will change the design of its templates to include fields for company information and contact details.
It has also pledged to provide clear guidance to traders on relevant European Union (EU) consumer laws, as well as company details regarding any EU trader when requested by national consumer authorities.
In addition, Shopify has agreed to take down web shops that are engaged in breaches such as fake scarcity claims, pressure selling and trading counterfeit goods.
The retailer will also provide all relevant company details.
Last July, Shopify began a dialogue with the European Commission (EC) and the network of national consumer protection (CPC) authorities to address the illegal practices of some traders on its platform.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
In a statement, the EU said that the CPC will monitor the implementation of this commitment and other complaints from consumers.
Further actions at a national level may also be taken to ensure that EU standards are being respected and that all platforms are following the same rules.
EU Justice Commissioner Didier Reynders said: “Almost 75% of internet users in the EU are shopping online.
“This is a huge market for scammers and rogue traders to exploit, and they will continue to do so unless we act.
“We welcome Shopify’s commitment to ensure that traders operating on its platform are aware of their responsibilities under EU law and are taken down if they break the rules.”
Based in Ottawa, Shopify provides services such as payments, marketing, shipping and customer engagement tools for e-commerce traders.
In July this year, the company decided to reduce its workforce by 10% as it faced slower growth after a surge in demand due to the Covid-19 pandemic.