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UK business group applauds the removal of ‘crippling’ proposals from EU Consumer Rights Directive amendments

UK business group applauds the removal of ‘crippling’ proposals from EU Consumer Rights Directive amendments

 

A UK business group has welcomed the abandonment of European Union (EU) plans that would have made internet retailers trade across Europe – and pay postage costs for any returned items.

 

The European Parliament approved a final version of the EU’s Consumer Rights Directive, which aims to modernise and harmonise consumer rights law across Europe.

 

Crucially, for the Forum of Private Business (FPB), the Directive ultimately did not include two previous proposals, which it believes would have crippled web-based retailers in the UK.

 

One previously planned article would have obliged web-based independent traders to sell their products to almost every country in Europe. Meanwhile, another proposal would have forced businesses to pay the postage on any goods worth more than £35 when returned by the consumer, meaning British web traders could have faced extortionate bills to return goods from far-flung parts of the EU.

 

Protecting fledgling e-commerce businesses

 

The Forum lobbied against the proposals, arguing that they would have proved highly detrimental to small businesses in the UK’s thriving e-commerce sector. Highlighting widespread opposition to the ideas among web-based retailers, the Forum pointed out that many small to medium-sized enterprises (SMEs) in the ecommerce industry would have problems processing payments, avoiding falling victim to fraudsters and complying with additional local regulations in other European countries.

 

Additionally, many independent online retailers only have the expertise and the infrastructure to sell to the domestic market and some are only licensed to sell their products to customers in certain nations.

 

Phil McCabe, Forum spokesman, said: “These proposals were baffling and clearly ill-thought out from the start. When combined together, they would have had a devastating effect on small web-based retailers and it’s hard to see how they could possibly have benefitted genuine consumers.

 

“Thankfully, the legislators saw sense and we believe that the Directive is now largely unproblematic for e-commerce traders. However, it does extend the period within which consumers can return goods, without giving any reason, to 14 days - we think this is unnecessary and open to abuse.”

 

Two-week cancellation period remains

 

Forum member Hayley Chalmers was one of many small business owners who would have been affected by the previous proposals.

 

She recently started online fashion retail business Short Couture and believed that the Directive in its previous form could have spelled the death knell for fledgling e-commerce traders, branding it a “completely pointless, expensive, unenforceable, unworkable piece of red tape”.

 

Chalmers said she was relieved that proposals to force businesses to sell throughout the EU and pay for the postage costs of returned goods have been dropped. However, she said the extension to the cancellation period is ‘disappointing’.

 

She said: “This is a great relief – it was more unnecessary and very expensive legislation that many small businesses just couldn’t have coped with.

 

“But it’s very disappointing that the extension of the cancellation period to 14 days has remained. It’s a ridiculous and unnecessary level of ‘protection’ for the consumer. Nobody needs 14 days to decide if they want to keep or return something. Once again the biggest effect is on the micro and small businesses, but the European Parliament is only considering large companies.”

 

The Forum is continuing to campaign against unnecessary and over-complicated red tape affecting SMEs through its ongoing campaign, Get Britain Trading.

 

It also helps its members comply with both European and UK-specific legislation through a range of services including a comprehensive print and online Employment Guide, a Health and Safety Guide package and 24-hour legal helpline.