The regulation of social media commerce under the DSA: A consumer protection perspective

Social media commerce, defined as the direct selling of goods and services through social media, is emerging as a prominent business model in the platform economy. As social media platforms introduce e-commerce features, they are becoming what I call social marketplaces: a new category of online platforms found at the intersection of social networks and online marketplaces. This article examines how the Digital Services Act (DSA) protects consumers in relation to social media commerce, and what specific obligations it imposes on social marketplaces to increase transparency in online transactions. While the DSA does not explicitly address social media commerce, it indirectly applies through Section 4 which imposes obligations on ‘online platforms allowing consumers to conclude distance contracts with traders'. I argue that because social marketplaces fall within this category of online platforms, they are subject to the obligations laid down in Section 4 DSA, namely Article 30 DSA (traceability of traders), Article 31 DSA (compliance by design), and Article 32 DSA (right to information). This article critically analyses the application of these provisions to social marketplaces and examines their interaction with EU consumer laws. Based on the analysis, it identifies three shortcomings in the DSA’s approach to protecting consumers on social marketplaces: (i) regulatory complexity due to overlaps with the EU consumer acquis , (ii) interpretative ambiguity, as the DSA was not designed with social marketplaces in mind, and (iii) an enforcement gap specific to social media commerce. Rather than calling for new legislation, this article concludes that effective consumer protection on social marketplaces requires clarifying the interaction between legal instruments, interpreting existing provisions in light of evolving platform practices, and ensuring coordinated enforcement across relevant actors.