Business News
14 Day Returns Policy and Delivery Charges could cost SMEs £8.8bn
Whilst this sounds extreme, this notion is a real threat to SMEs should new policy amendments to the Consumer Rights Directive be passed through parliament.
The most predominant changes propose that consumers would have the delivery cost of returns over 40 Euros (£35) covered by the business the item was going back to, and they would also have double the period within which to change their mind about their purchase increasing to fourteen days up from seven.
Quentin Pain, founder of accounting software firm Accountz, has voiced his deep concerns over the matter following support for the changes from MEPs at the changes aimed to protect shoppers making purchases online, offline, on the telephone and by post. Pain claims that the changes could have serious implications to SMEs by way of the extra risks, costs and complications that come with online purchasing.
"The proposed changes to the Consumer Rights Directive are absolutely crazy and will be extremely harmful to the recovery and growth of online trading," the entrepreneur commented. "The internet is key to the success of any SME; it enables small businesses to offer choice and price competitiveness.
"These amendments will go a huge way to deterring the growth of start-ups which in turn will have a huge ripple effect on the entire economic recovery. The European Parliament have really been ill-informed and have completely disregarded the thoughts and opinions of the retail community as a whole. It's EU legislation gone mad.”
The changes are not in force yet, as they will be subject to negotiation before becoming law between the European Parliament and the Council of Ministers; however Pain has highlighted the issues concerned with a view that this could seriously affect small businesses and online retailers to the tune of £8.8bn in delivery charges alone.
It is yet to be seen whether these changes will pass through to law, but SMEs should take heed and prepare for an upheaval in the law for consumers.
