The catalogue and e-commerce industry is calling on Brussels to scrap proposed changes to the Consumer Rights Directive, which could force retailers to sell into all countries within the EU and offer free returns.
UK trade body the Catalogue Exchange (CatEx), which represents more than 220 companies – both large and small – in the sector, believes the changes would have a devastating impact on the industry. It is calling on the EU Parliament’s Internal Market & Consumer Protection (IMCO) committee to urgently consider the views of CatEx and the many other industry associations in Europe, which are strongly opposed to these changes.
CatEx is working with the British Retail Consortium to lobby against the amendment and to call for a further review. It is also calling on its members to lobby their MEPs, to ensure they are more aware of the wider impact of this legislation.
Many are supporting the amendments, as they have been presented to them as enhancing the rights of consumers, yet CatEx believes they could reduce consumer choice and lead to consumer confusion and frustration. It particularly alarmed by Article 17, which could force retailers to offer free returns.
Tim Curtis, CatEx deputy chairman and managing director, Northern Europe, of Lands’ End, said: “Unless our industry raises serious and loud objections, it could soon be mandatory to refund returns postage costs on any order over €40, from any EU country.
“We believe this change would both hinder the development of cross-border trade and disproportionately affect smaller direct commerce businesses, thereby reducing choice for the consumer and, in the longer term, creating upward pressure on prices. We believe this is counter to the spirit of the legislation and of the EU.
“We are also concerned about the impact on the profitability of our members in the UK market. Some of our members already offer free returns on all orders, but many only do this on selected products, or as a promotional offer, and certainly not to customers ordering from countries where they lack the scale or logistics for a low-cost returns service.”
CatEx believes such a policy would have wide-ranging consequences. For those lacking the volume and dedicated logistics arrangements of larger businesses, the ‘per order’ cost of returns postage from outside the UK is prohibitive, and would deter many members from trading cross-border, to the detriment of UK businesses and EU customers.
