Exploratory study of consumer issues in online peer-to-peer platform markets: final report

Abstract

This study explores consumer issues in five online peer to peer platform markets: (Re)sale of Goods; Sharing/renting of goods, Sharing/renting accommodation; Sharing/hiring rides; and Odd jobs. The study estimates that 191m citizens across the EU-28 spend EUR 27.9 billion per year on online P2P platforms. Of this total, an estimated EUR 10.61 billion consists of platform revenues and revenues of third parties. The study defines three main peer-to-peer platform business models: (a) hosting of listings where platforms do not get involved in the peer to peer transaction (b) active management of transactions where platforms foster trust among peers to facilitate a larger number of transactions and (c) platform governed peer transactions where the platform sets one or more contractual terms for the peer-to-peer transaction and exercises control over the performance of the transaction. The study identifies five key consumer issues that emerge from this new kind of economy: (1) transparency and clarity regarding the nature of transactions concluded through online P2P platforms, applicable consumer rights and obligations, the applicable legal framework and its enforcement; (2) reliability of peer review and rating systems and accuracy of identity information provided on the platform; (3) discrepancy between exclusion of platform responsibility and liability for the performance of online P2P transactions and platform practices; (4) access to redress for peer consumers and peer providers; and (5) data use and data protection issues.