UK Direct Commerce Trade Body CatEx Fights Catastrophic Changes to EU Directive

Wednesday, 1 June 2011

  UK trade body the Catalogue Exchange (CatEx) is calling on the EU to amend or abandon proposed changes to the Consumer Rights Directive, which could see retailers forced to sell into all countries within the EU and offer free returns.

As the UK’s trade association for small and medium sized direct commerce businesses, CatEx represents more than 220 companies in the sector.  It’s extremely concerned about the devastating impact these changes could have on the industry. It’s calling on the EU Parliament’s Internal Market and 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.

The CatEx Advisory Board is working in partnership with the British Retail Consortium to lobby against the amendment and to call for a further review. It’s 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 it could well reduce consumer choice and lead to consumer confusion and frustration. It’s particularly alarmed by Article 17, which could force retailers to offer free returns.

Tim Curtis, CatEx deputy chairman and Managing Director, Northern Europe, of apparel cataloguer Lands’ End, says: “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 run, creating upward pressure on prices.  We believe this is counter to the spirit of the legislation and of the Union. 

“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 there would be many challenges in implementing such a policy. For those lacking the volume and dedicated logistics arrangements of larger businesses, the ‘per order’ cost of returns postage from outside the UK is significant. To be obliged to do this would deter many members from trading cross-border, to the detriment of UK businesses and EU customers.

ENDS

For further information and interview opportunities, please contact:

Naomi Dymond, CatEx Head of Communications
Email: naomi@catalogueexchange.co.uk / Tel: 0871 8555 545

THE CATALOGUE EXCHANGE
CatEx is the first trade body of its kind in the UK to be established with the specific aim of supporting businesses in all areas of the catalogue and online retail community. It was set up seven years ago by business owners who felt their interests were not fairly represented and who wanted to give themselves and others in the industry a voice. The organisation primarily exists to facilitate vital networking between its members. It currently has more than two hundred and twenty client-side and supplier-side companies on board, including Scotts & Co, Boden, Lands' End, Joules Clothing, House of Bath, Handpicked Collection and the British Heart Foundation. For more information please visit www.catalogueexchange.co.uk.