Welcome to the April 2021 edition of our Retail & Consumer monthly news round-up
This newsletter focuses on key news and updates for retail and consumer-facing businesses around the world, including our latest briefings on the COVID-19 pandemic and its impact on the sector. You can find all our COVID-19-related updates for retail and consumer businesses on our dedicated InFocus page here.
At the end of the newsletter, you can find details of our recent news and events, which we think might be of interest to you and your team.
Please get in touch or visit our webpage for more information about Bird & Bird's Retail & Consumer Group.
In this newsletter:
London & the Consumer
The pandemic has upended UK consumers’ lives over the past year as lockdowns and tiered restrictions have limited the activities that are core to consumer spending. Yet consumers have shown themselves to be resilient in getting out and about again when restrictions permit. What will life be like for consumers on the ground in London? Will shopping habits adopted during lockdowns stick? And how will consumer-facing businesses adapt to the future consumer landscape?
Spain: The use of influencers in Spanish marketing
On 1st January 2021, a new Code of Conduct, developed by AUTOCONTROL and the Spanish Association of Advertisers (AEA) and applying only to Spain, entered into force and established much-needed guidelines governing the relationship between social media networks and the advertising of goods and services, in particular, by so-called “influencers”.
Read more >
Competition
France: A sandwich cartel case, or how leniency can get you out of a pickle
The French Competition Authority recently fined the three main French manufacturers of sandwiches for mass retail distribution for having implemented a volume and customer allocation plan over a six-year period and agreed on the price level to be offered to their customers. All of them applied for leniency and obtained substantial reductions in fines.
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Sweden: Competition on the market for digital platforms
In February 2021 the Swedish Competition Authority (“SCA”) published a report which covers the increasing influence of digital platforms within the field of competition law.
In its report, the SCA has analysed five markets along with the SCA´s previous decisional practice (concerning digital markets) in order to assess whether and in what way impediments to effective competition exist on digital platforms. Furthermore, in its report the SCA considers whether it is possible to exercise effective enforcement within the existing competition rules, or if there is a need for regulatory reforms or supplementary regulation to effectively enforce competition law in relation to digital platforms.
Read more >
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Czech Republic: E-commerce is preparing for new obligations in doing business with consumers
EU Member States are obliged to implement the Digital Content Directive (Directive (EU) 2019/770) and the Sale of Goods Directive (Directive (EU) 2019/771) by 1 July 2021. The Czech Government has thus prepared the implementing bill that will amend the Civil Code (Act No. 89/2012 Coll., as amended) with the aim of strengthening legal certainty for consumers and businesses. We provide a brief overview of the proposed changes.
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Australia: Menulog to trial employment model for food delivery service
As an industry-first in Australia, Menulog has announced that it is reassessing its current independent contractor model, and trialling the engagement of its delivery drivers as employment relationships.
Menulog, along with industry rivals such as Uber and Deliveroo, is a household name in the ever-expanding gig economy. Each has previously maintained that the engagement of delivery drivers as independent contractors means that the drivers have flexibility in their hours and days of work. On the flipside, unions would say the key drawback of this is that as contractors, the drivers are not entitled to industry minimum wages and other protections.
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The new age brand strategy: Trends, opportunities and challenges
The turn of the decade has been eventful, to say the least. The global crisis has threatened all we once took for granted, and radically changed the way we as individuals live, work and play. For many businesses, it has also been a struggle to stay afloat. Although some may lament the mass retail apocalypse caused by the pandemic, this new climate has equally revealed opportunities to reinvent the brand by capitalising on current innovations and trends.
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Pass the mustard: Incorrect advice found in a newspaper regarding a horseradish herbal remedy is not a "defective product" under the EU Product Liability Directive (AG's opinion)
An Austrian case, being considered by the Court of Justice of the EU (CJEU), has been reviewed by Advocate General Hogan (AG) – who has given his opinion that inaccurate health advice in a hardcopy newspaper was not a defective product under the Product Liability Directive (85/374/EEC) (PLD).
The PLD contains a strict liability regime for persons that suffer personal injury or damage to non-commercial property as a result of defective products. The PLD is implemented into English law by the Consumer Protection Act 1987 (CPA) and the CPA continues to apply in respect of the UK’s strict liability regime (even though the UK has now left the EU). This opinion, and the CJEU’s forthcoming subsequent decision, may provide a useful indication of how an English court will interpret the meaning of a ‘product’ under the CPA should a similar claim arise here.
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UK: Softening the cliff-edge - what next for COVID-19 related debt recovery
Since COVID-19 restrictions on businesses were first imposed in March 2020, the UK Government has repeatedly extended their schemes to protect debtors from both insolvency and property enforcement action by their creditors. The Government has now launched a consultation on what should come next when those schemes are scheduled to expire on 30 June 2021.
Read more >
Tax
UK: Logistics, fulfilment and VAT
Despite the challenges posed by Brexit and COVID-19, there has been an increase in interest in the urban warehousing market in response to an increased demand for storage space. This presents major opportunities for the logistics sector, and investors in logistics and industrial real estate are alert to the possibilities. This article highlights the impact of some fundamental post-Brexit UK VAT developments, which may increase interest in warehouse fulfilment offerings but will also bring new responsibilities.
We are delighted to announce our firm's best results ever in the Legal 500 EMEA 2021 directory
Bird & Bird has been recognised as a top-tier firm in 44 practice areas and is recommended in 112 more, including:
Retail (top tier in Italy and Spain; ranked in the Netherlands), Luxury Goods (ranked in Italy), Food (top tier in Belgium; ranked in Italy, Spain and the Netherlands), and EU Regulatory: Food (ranked in Belgium).
Many thanks to our clients who have provided feedback and helped us to achieve these rankings.
Have you seen our new videos?
We have recently created three videos to provide a snapshot of our Retail & Consumer sub-sector expertise. Click on the links to watch our videos for the Food & Beverage; Luxury, Fashion & Retail; and Hotels, Hospitality & Leisure sectors.