The amended directive could cripple small to medium-sized internet businesses Sunday May 1,2011 BRUSSELS is planning to force online retailers to sell to all EU countries and pay for free international returns, costing the industry an extra £8.9 billion a year in delivery charges. The Internal Market and Consumer Protection Committee recently voted in favour of the draft amendments to the Consumer Rights Directive (CRD), to be implemented in 2013. While spelling good news for consumers, the amended directive will cripple small to medium-sized internet businesses, according to industry body, the Forum of Private Business (FPB). Sole traders who sell through eBay and Amazon will be among those affected by the laws. The goal of redrafting the directive is to have a single rule book for all 27 EU countries. This would make it easier for businesses to trade without the expense of ensuring they comply with local regulations in each EU country they trade. However, amendments to two CRD articles have sparked fear among small online business holders. Under Article 22a of the CRD, web-based independent traders could soon be obliged to sell their products to almost every country in Europe. And under Article 17, businesses would be forced to pay the postage costs if a customer decides to return goods worth more than £35 within up to two weeks of purchase. FPB chief executive Phil Orford said: “Being obliged to sell to every single country in the EU may not be a problem for multi-national companies, but it could sound the death knell for countless SMEs in the e-commerce industry. “Many independent online retailers only have the expertise and the infrastructure to sell to the domestic market, or to a select few overseas countries. “Some have built themselves up around one particular product which they are only licensed to sell in a certain national market.” E-commerce trade body IMRG estimates that the draft amendments to the CRD will cost online retailers across Europe an additional e10 billion (£8.9 billion) per year in delivery charges amounting to 4 per cent of the estimated worth of the e-commerce industry. Online multi-national auction site eBay is largely supportive of the amendments. An eBay spokesman said: “eBay has been campaigning for the harmonisation of consumer rights for many years. “Improving consumer confidence would give a welcome boost to the many online businesses looking to trade internationally via eBay.”
EU BLOW FOR WEB TRADERS
By Emma Vickers
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Read more: http://www.express.co.uk/posts/view/244072/EU-blow-for-web-tradersEU-blow-for-web-traders#ixzz1L5UXbdj5
Sunday 1 May 2011
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