Legal services for online sellers of luxury sneakers and collectibles

What has changed in e-commerce in recent years

The key regulations that will affect you as a luxury goods seller include, in particular, the new EU General Product Safety Regulation (GPSR), the Digital Services Act (DSA) and the GDPR.

In practice, the situation is complicated by the fact that the individual regulations build on each other and their interpretation is refined by the case law of courts and regulators. The Czech legal team at ARROWS advokátní kancelář deals with these issues on an ongoing basis and can help you set up a system that will stand up in the future as well.

Luxury brands and selective distribution – what you can and cannot do

One frequent legal topic is which online platforms you are allowed to use to sell luxury goods. Decisions of EU courts have confirmed that manufacturers may restrict the sale of their luxury goods on certain online platforms in order to protect the brand’s image.

If you are an authorised distributor of a luxury brand, you cannot automatically sell the goods via online marketplaces if the distribution network terms prohibit it.

In practice, ARROWS advokátní kancelář also handles situations involving small entrepreneurs who purchase goods and resell them. Here it is necessary to distinguish whether so-called exhaustion of trademark rights has occurred. The attorneys at ARROWS advokátní kancelář can help you assess the risks associated with reselling goods.

Intellectual property, counterfeits and trademarks – the biggest risks

In the luxury sneaker and collectibles segment, trademark infringement is a major risk. The seller’s liability in civil law is strict, so it does not matter whether you knew the item was counterfeit. Selling counterfeits infringes the rights of the owner and may lead not only to civil disputes but, in serious cases, also to criminal prosecution in the Czech Republic for trademark infringement.

A real-life case shows that even an unknowing purchase of high-quality counterfeits can lead to an inspection, seizure of goods and court proceedings. The outcome is often an obligation to compensate the brand owner for damage and the loss of the goods. Trademark registration is the foundation for effective protection against copying if you are building your own brand.

Authenticity checks and their legal consequences

When selling luxury goods, verifying authenticity is crucial. Using authentication services can serve as evidence of your good faith, although it does not fully relieve you of civil liability towards the buyer under Czech law.

The attorneys at ARROWS advokátní kancelář recommend having the verification process contractually covered and keeping documentation on the origin of the goods.

GDPR, cookies and personal data protection

Operating an e-shop involves processing personal data, which is subject to strict GDPR rules and the Czech Act on the Processing of Personal Data. The most common shortcomings relate to cookies, information duties and contracts with processors. Cookie banners with pre-ticked consents or access to a website conditional on consent are contrary to the regulations.

You must have a document that clearly and comprehensibly informs data subjects what data you collect, why, and what rights they have. You must also enter into a data processing agreement with each external party that has access to the data.

You must be able to respond to requests for erasure, rectification, or access to data within the statutory deadline. ARROWS, a Prague-based law firm, carries out e-shop audits and prepares documentation to reflect the current practice of the Czech authorities.

Related practical GDPR questions

1. Do I need GDPR consent from every customer?

You do not need consent to process an order because you process data on the basis of performance of a contract. Consent is typically required for sending newsletters or for marketing cookies.

2. What if a customer wants their data erased?

You must comply unless there is another legal basis for retention, such as archiving tax documents under Czech legislation. However, you must delete any data that is not necessary for that purpose.

3. What fine can be imposed for a GDPR breach?

It depends on the severity. In the Czech Republic, fines for small and medium-sized businesses typically range in the tens of thousands, but they may be higher in cases of systematic misuse of data.

GDPR and personal data protection

DSA – the Digital Services Act and content on your website

If you operate an e-shop that allows user-generated content to be posted, obligations under the Digital Services Act (DSA) apply to you. This regulation applies across the entire European Union. You must publish contact details for communication with authorities and users and enable easy reporting of illegal content.

You must also clearly state the rules for content moderation and, if you use automated tools, inform users accordingly. You must handle notices of illegal content without undue delay. You must clearly state the rules for content moderation and, if you use automated decision-making tools, inform users accordingly.

There are certain exemptions for small and micro-enterprises, such as an exemption from the obligation to publish annual transparency reports. However, the basic content reporting mechanisms must still be in place.

Related practical DSA questions

1. What should I do if someone reports a fake review?

You are required to assess the notice. If the content is illegal or breaches your terms, you should remove it and inform both the notifier and the content author of the action taken.

2. Do I have to deal with the DSA even if I do not have reviews?

If the website does not allow any third-party content to be posted, the impact is minimal. However, the obligation to designate a contact point and have transparent terms applies generally.

3. Am I at risk of a fine for breaching the DSA?

Sanctions can be significant and may reach a percentage of annual turnover. The supervisory authority in the Czech Republic is the Czech Telecommunication Office (Český telekomunikační úřad).

Consumer protection, returns, and complaints

When selling to consumers, you must comply with the Czech Civil Code and the Consumer Protection Act. These rules are mandatory and you cannot deviate from them to the detriment of the consumer. Before the contract is concluded, you must inform the consumer about the trader’s identity, the price, and rights arising from defective performance.

The consumer has the right to withdraw from a distance contract within 14 days of receiving the goods without giving any reason. You must refund the money within 14 days of withdrawal, but you may wait until the goods are returned. The consumer may claim a defect that becomes apparent within two years of receipt.

The attorneys at ARROWS, a Prague-based law firm, prepare terms and conditions and complaints procedures so that they comply with Czech law while also protecting the seller.

GPSR – the new General Product Safety Regulation

As of December 2024, the new General Product Safety Regulation (GPSR) is effective and applies to all non-food products. Your e-shop product listing must include the contact details of the manufacturer and the responsible person. If you sell goods originating from countries outside the EU, a responsible person established in the EU must be designated for each product.

You must also include any safety warnings in the language of the country where you sell. If you find that a product you sell is dangerous, you must inform the supervisory authorities. If you find that a product you sell is dangerous, you must inform the supervisory authorities via the relevant gateway. 

Taxes, VAT, and One Stop Shop (OSS)

Selling online abroad comes with specific tax considerations. Mandatory VAT registration in the Czech Republic arises once you exceed the statutory turnover threshold, while for sales to the EU the limit is EUR 10,000. Mandatory VAT registration in the Czech Republic arises when turnover exceeds CZK 2 million over 12 consecutive months.

To avoid having to register separately in each EU country, you can use the One Stop Shop (OSS) scheme. When importing goods from third countries, it is then necessary to address customs duties and VAT.

When importing goods, it is necessary to address customs duties and VAT, with goods up to EUR 150 generally exempt from customs duty. Tax advisory is closely linked to the legal structuring of your business and the correct allocation of liability under Czech law.

Unfair commercial practices and "Dark Patterns"

Czech and EU legislation prohibits unfair commercial practices and manipulative design known as dark patterns. Prohibited practices include fake discounts, false urgency, gradual price increases, or manipulative buttons. A discount must be calculated from the lowest price at which the goods were sold in the 30 days prior to the discount.

The attorneys at ARROWS advokátní kancelář help clients review the purchasing process to ensure it is legally compliant in the Czech Republic.

Inspections and legal prevention

Conclusion of the article

Selling luxury sneakers and collectible goods is an attractive but legally demanding segment. European regulation is complex and mistakes can be costly, so it is not enough just to sell—you must comply with a range of obligations.

The Czech legal team at ARROWS advokátní kancelář has extensive e-commerce experience and will help you set up your business so that it is safe and compliant in the Czech Republic.

Do not rely on templates downloaded from the internet, because every e-shop is different. Email consultation@arws.cz to arrange a non-binding consultation.

Read also:

• GDPR inspections in practice: how investigations by the Office for Personal Data Protection are conducted
• Compliance audits: How to conduct an internal audit before the authorities arrive
• Operating Without a Licence in the Czech Republic: Legal Consequences Explained
• Czech Trade Licence (Živnostenské oprávnění): What Foreign Companies Must Know
• AI in a Game Studio: A Checklist for Contracts, Licensing, Data, and Liability