Times are tough enough without the extra burden of not knowing what’s coming around the corner. This horizon scanner provides clarity on what legal and regulatory changes lie ahead for retail and consumer businesses so that you can plot your course with confidence. It identifies over 35 issues that may impact your business throughout 2021 and beyond, including sustainability, digital consumer engagement, managing your real estate
and the future of employment.
Addleshaw Goddard is a tier one ranked Retail and Consumer
law firm, advising over 450 retail and consumer businesses.
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Prioritisation of climate resilience and adaptation to within retail and consumer operations is key. Is your business both operationally and financially resilient in the face of climate change?
Sustainability
DIGITAL CONSUMER
FUTURE OF EMPLOYMENT
ADAPTING BRICKS & MORTAR
INTERNATIONAL SNAPSHOT
SCOTLAND
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The UK Environment Bill 2019-21 is to be introduced, with the view to enhance wildlife, tackle air pollution, transform resource and waste management, and improve the resilience of water supplies.
Scotland’s Deposit Return Scheme is anticipated to reduce the £46 million spent each year on litter removal.
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Shaping trends
ESG
DIGITAL CONSUMER
FUTURE OF EMPLOYMENT
managing BRICKS & MORTAR
GERMANY
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The draft Mobile Working Act intends to give employees the legal right to
a ‘home office workplace’.
The Due Diligence Act introduces requirements for European companies to meet certain minimum standards of due diligence to reduce environmentally destructive practices across their supply chains.
DUBAI
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Law No.17 of 2020 on the Non-discriminatory Minimum Wage will take effect in 2021. This introduces the requirement for a national minimum wage to be set by the Minister and reviewed annually.
The requirement for non-Qatari citizens to obtain a 'No-Objection Certificate' from their employer to be able to transfer to a new employer is also removed by Law No.17. This could increase greater competition in the labour market.
The Dubai international financial centre (DIFC) has enacted data protection law DIFC law no. 5 of 2020 (DPL) to regulate the processing of personal data in the DIFC. The DPL brings the DIFC's data protection regime in line with global data protection standards.
CHINA
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China recently stated its aim to achieve carbon neutrality before 2060 through adoption of vigorous policies and measures.
Group buying: Only five years old, Chinese e-commerce platform Pinduoduo reported that more than $163bn of goods flowed across its platform in a year. By sharing Pinduoduo’s product information on social networks users can invite their contacts to form a shopping team to get a lower price for their purchase.
The Discrimination Legislation (Miscellaneous Amendments) Ordinance 2020 came into immediate affect in June 2020, providing a number of additional protections covering: harassment in the workplace; race discrimination; breastfeeding employees; and intention to discriminate..
HONG KONG
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Analysis from PWC shows that COVID-19 has opened up new opportunities for online-based consumption in Hong Kong where it was previously thought it was too convenient for this to be a necessary strategic focus for retailers.
The Hong Kong Government is reviewing the Personal Data (Privacy) Ordinance (“PDPO”) aiming to strengthen the protection for personal data.
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2-minute takeaway
Climate Change
Pressure continues to increase on measuring sustainability across all aspects of the supply chain and ensuring that this is done so transparently.
Sustainable supply chains
Minimising waste, sophisticated recycling and extending the value
of products will become even more important for retailers, as focus shifts to creating a circular economy.
Circular economy
In line with consumer and regulator interest, investor engagement with corporates is already becoming much more proactive and demanding. To meet this change in demand retailers must embed sustainability into corporate and risk management approaches.
Reporting
The covid-19 pandemic brought about the acceleration
of many digital trends already in motion within the retail sector. Fast tracking digital strategies and optimising existing platforms create a unique set of legal challenges to navigate.
Turbo Charged Transformation
The interaction and analytics of payments, loyalty
and customer behaviour are vital elements of retailers'
sales strategy (notwithstanding the difficulties of GDPR
and PCI compliance).
Big Data
With many retailers embarking on innovative ways
to connect and engage with customers businesses must be
clear on the benefits and risks associated with using influencers, programmatic advertising and POS marketing.
Digital Marketing
The introduction of regulations to protect
against anti-competitive practices of big tech such
as self-preferencing continues to be key focus
of the CMA and European Commission.
Regulating Big Tech
Increased transparency in the workplace, whether through analysis of working practices, the approach to furlough, health and safety, pay transparency or diversity all have the potential to have a significant and long term reputational impact for businesses if they do not take the right approach.
Transparency
Whether through the use of technology to develop alternative workforce models, through the impact of new working practices on working time and therefore compliance with National Minimum Wage obligations or as a result of the impact of Covid 19 and the eventual end of the furlough scheme, all R&C businesses will need to address the impact of the new working normal on their business.
The new working normal
Whilst international mobility may not seem such a key issue in the midst of dealing with Covid 19, when we do eventually see businesses open up the changes to the immigration rules as a result of Brexit will see businesses reliant on overseas labour needing to adopt a very different approach as a result of the end of free movement from the EU.
Brexit, Immigration & international mobility
The Covid-19 pandemic has forced retailers to re-think
the shopping experience and how digital interacts with
the physical store.
Evolution of the high street
Will the financial impact of the pandemic also bring
about fundamental changes to the basis on which retailers
lease their stores?
Structural changes to leases
The Government has tried to encourage greater
collaboration between landlords and tenants to see them
through the Covid-19 crisis, but is it happening?
Collaboration between landlords and tenants
The importance of a strong distribution network has only
increased with the challenges of 2020 and it remains
an attractive asset class for investment.
Logistics and distribution
LEGAL CHANGES
LEGAL CHANGES
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The Deposit and Return Scheme
for Scotland
Climate change: greener contracts
Electric vehicle charge point
requirements
Plastics Packaging Tax
The Environment bill 2019-21
LEGAL CHANGES
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Digital markets - Competition
& Markets Authority (CMA) report
International data sharing in flux Schrems II & Brexit
SCA (strong customer authentication) payments standard
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Immigration and Social Security Co-ordination (EU Withdrawal) Bill
Reforms to the operation of the IR35 regime in the private sector
Confidentiality clauses and non-disclosure agreements
New Employment Bill
Whistleblowing: compliance with new EU directive
Work-life balance for parents and carers
LEGAL CHANGES
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Improving Minimum Energy Efficiency Standard (MEES)
(MEES) consultation
Government consultation on
greater transparency on terms
of land agreements
Business rates review
Jan 21
Apr 21
Sep 21
Oct 21
Dec 21
2022
2023
The year ahead and beyond
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Food and drink: Labelling and origin
rule changes
UKCA
safety markings
The impact on commercial contracts
Jurisdiction/
enforcement
of judgments
Immigration and Social Security Co-ordination (EU Withdrawal) Bill
Replacement
of the Financial Reporting Council
Apr 21
01 January 2021
Changes to the use of organic logos, food origin labelling and a new health and identification mark are to be introduced on Brexit day.
01 January 2021
01 January 2021
01 January 2021
01 January 2021
01 January 2021
New provisions take effect in Great Britain that introduce the UKCA Safety Markings.
Businesses are largely still working in the dark in terms of any future trade arrangements between the UK and the EU and their likely impact on the subject matter of commercial contracts.
The Brexit deal does not include provisions on enforcement of judgments. The UK will accede to the 2005 Hague Convention on 31 December 2020.
In light of the UK- EU trade agreement, businesses should consider the potential impact on future supply arrangements and look to revise if necessary.
The Financial Reporting Council (FRC) is to be replaced by
a new regulator called the Audit, Reporting and Governance Authority (ARGA).
Reforms to the operation of the IR35 regime in the private sector
April 2021
Changes to the off-payroll rules have been delayed until April 2021 due to the covid-19 pandemic.
SCA (strong customer authentication) payments standard
14 September 2021
SCA is a new standard that is to be applied when a customer accesses their payment account online, undertakes any other action which may imply a risk of fraud, or initiates an electronic payment, brought in by the second payment services directive (PSD2).
The Food Information (amendment) (England) regulations 2019 / ‘Natasha’s Law’
01 October 2021
In the UK new allergen labelling requirements take effect on
1 October 2021 extending the duty to label to pre-packed food for direct sale products.
Whistleblowing: compliance
with new EU directive
17 December 2021
The Whistleblower Protection Direction provides protection for those individual workers in both the private and public sectors where they seek to expose breaches of EU law in several policy areas.
Plastics
Packaging Tax
April 2022
This will apply
to plastic packaging produced in, or imported into the
UK that does not contain at least 30%
recycled plastic.
Omnibus Directive - EU review of consumer law directives
28 May 2022
A number of Directives are currently progressing though
the EU legislative process concerning
the rights of consumers when buying goods
and digital content.
May 2022
Vertical Agreements Block Exemption Regulation (VBER) review
Following a re-examination of the VBER, the European Commission have concluded that whilst the vertical guidelines remain relevant for vertical agreements, they do not adequately cover the later developments such as online platforms.
The Deposit
and Return Scheme
for Scotland
July 2022
To promote and secure an increase in recycling of materials, the Scottish Government have introduced legislation that establishes a deposit return scheme.
Work-life balance
for parents and carers
This directive is a further step towards promoting equality and the sharing of care responsibilities between women and men across the EU.
August 2022
Improving Minimum
Energy Efficiency Standards
(MEES) consultation
01 April 2023
From 1 April 2023, none
of a business's investment portfolio or operational leasehold estate can be let if it has an EPC rating of F
or G as a result of changes.
ESG
DIGITAL CONSUMER
FUTURE OF EMPLOYMENT
managing BRICKS & MORTAR
LEGAL CHANGES
LEGAL CHANGES
LEGAL CHANGES
LEGAL CHANGES
LEGAL CHANGES
LEGAL CHANGES
LEGAL CHANGES
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