Talking Shop January 2024
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Welcome to the January 2024 edition of Talking Shop.
This edition includes consumer law updates from Australia and Sweden; a summary of a recent decision important for franchisors with long-term contracts with their franchisees; an exploration of the implications of the European Accessibility Act; and much more. We are also introducing our new podcast, Retail Therapy. Find out more in the News & Events section below, and listen to the first episode here.
Please get in touch or visit our webpage for more information about Bird & Bird's Retail & Consumer Group.
In this edition:
Competition
Poland: “Drip pricing” and aggressive marketing under scrutiny
The Polish Competition Authority has recently taken action against two companies operating in the Polish market - Dr Smile and eBilet. Dr Smile has been accused of using a marketing practice that violates the collective interests of consumers. Meanwhile, two decisions have been taken against eBilet, one of which concerns the so-called “drip pricing” practice.
Consumer Law
Australia: Bed, bath & contravening the Australian Consumer Law
For a retailer looking to expand the domain of its offerings, it may be logical to look to the existing retailers who are already succeeding for achieving commercial success. However, a retailer must take particular care when doing so, as going too far can amount to misleading or deceptive conduct in contravention of the Australian Consumer Law and passing off.
Sweden: Clarity on price transparency - new guidance on price indication
On average, 7 out of 10 traders do not comply with the rules on price indication during sales and promotions. A precise application of the rules is particularly important given the Swedish Consumer Agency’s focus on price indication, having recently conducted a sweep of the sector and provided new guidelines. So, what are the key points for traders and how does it impact future sales and promotion signage? Here are our key takeaways.
Franchising
UK: The Body Shop’s recent failure to successfully terminate a long-term franchise agreement has important practical consequences for similar contractual arrangements
The English High Court has recently looked at whether cosmetics retailer, The Body Shop, could terminate on reasonable notice its agreements with a franchisee which had been in place for some 40 years, in the absence of explicit termination rights. The Court’s decision could be difficult reading for franchisors. In this article, we look at the High Court’s findings in the recent case of The Burke Partnership -v- The Body Shop International Limited and its implications for franchisors with existing or proposed long-term contracts with their franchisees.
Regulatory
European Accessibility Act: Is it time to update your websites, products and services to meet Europe’s accessibility requirements?
From 28 June 2025, new requirements will apply across the European Union concerning the accessibility of some products and services for persons with disabilities. Directive (EU) 2019/882 (the European Accessibility Act or EAA) introduces these changes with the aim of harmonising accessibility requirements for consumers across the EU's internal market. It follows the ratification of the EU and all Member States of the United Nations Convention on the Rights of Persons with Disabilities. The EAA has significant implications for businesses in a range of sectors, including online retail.
Supply Chain
Germany: Provisional agreement reached on European supply chain law
A provisional agreement on the Corporate Sustainability Due Diligence Directive (CSDDD) was reached in the trilogue negotiations between the European Parliament, European Commission and European Council on 14 December. What are the contents of this agreement and what should companies be aware of?
Sustainability
The new ecodesign framework in the European Union
On 4 December 2023, the European Parliament and the Council of the European Union reached provisional agreement on the text of the European Commission's proposal for Ecodesign for Sustainable Products Regulation, which will replace the current Directive 2009/125/EC. The new Regulation is intended to enable the placing on the market and putting into service within the European Union of products designed and manufactured according to sustainability criteria, in terms of durability, reliability, reusability, upgradeability, reparability, recyclability and ease of handling concerning maintenance.
Australia: Navigating greenwashing - the ACCC’s definitive guide for businesses making sustainability claims
In July 2023, the ACCC published its draft guidance to improve businesses’ environmental claims. The draft guidance was subject to public consultation in the second half of 2023, and in December the ACCC released its final guidelines for businesses titled “Making environmental claims”. The ACCC received feedback on the draft guidelines from over 150 stakeholders and incorporated some changes to the final guidelines. However, the 8 principles espoused in the draft guidelines remain unchanged in the final version.
Finland: Consumer Ombudsman calls for accuracy in environmental marketing
The Finnish Competition and Consumer Authority, the supervisory authority in Finland for compliance with consumer law, has recently required multiple companies to stop using misleading environmental claims in marketing. In the latest decisions, the Director of Consumer Division of the Finnish Competition and Consumer Authority, the Finnish Consumer Ombudsman examined misleading environmental claims on the websites of Marimekko Corporation and Stockmann Plc.
Sweden: The Green Claims Directive - challenges for the Swedish food industry
Claims that appeal to consumers’ environmental awareness and their concern about climate change are soon to be subject to a new regulatory framework as the European Commission has proposed the Green Claims Directive. This article discusses the potential challenges of the proposed Directive to the Swedish food industry, an industry often associated with sustainability-driven innovation.
News & Events
UK: Our top ten predictions for 2024 in the cosmetics, beauty and fragrance industries
The cosmetics, beauty and fragrance sectors are competitive and demand flexibility and dynamism in light of changing consumer preferences, legal and regulatory developments, economic instability, political unrest, sustainability concerns, and technological innovations. We’re about to enter a new era of cosmetics, beauty and fragrance, and our report provides a forward-looking trend projection for 2024. The key theme is that, despite persistent challenges, these sectors are expected to show more resilience in the years to come, with the global beauty industry achieving significant growth.
Retail Therapy: A Bird & Bird podcast for the Retail & Consumer sector
In our podcast, Retail Therapy, we give a Bird’s eye insight into the trends, challenges and opportunities in the Retail & Consumer industry. We’ll discuss a wide range of topics, drawing on Bird & Bird’s extensive knowledge of the Retail & Consumer sector, across our global network of lawyers. We’ll also be interviewing industry experts and thought leaders to share their valuable perspectives into the world of retail.
The first episode explores the key themes of our UK Predictions Report for the Cosmetics, Beauty & Fragrance Industries, mentioned above. Tune in to stay up-to-date on the latest developments, and reach out to continue the conversation!
Webinar: Protecting your trade secrets and IP in a global workplace
8 February, 16.00 GMT
In a competitive global market, losing talented staff, customer contacts, confidential information and other company property can all be very damaging. It is vital for international employers to understand the relevant legal framework and practical steps required to protect their businesses from competitive threats before and after employees leave.
Join our International Employment and Intellectual Property experts on Thursday 8 February, as they share key learning points for identifying and protecting your trade secrets and intellectual property, including discussion on preventive measures, crisis response, and handling international disputes in this area.
Webinar: How to run successful prize promotions
20 February, 11:00 - 12:00 GMT, 12:00 - 13:00 CEST
22 February, 13:00 - 14:00 AEST, 10:30 - 11:30 SGT
Prize promotions can be a highly successful marketing technique to engage with customers, and brands are increasingly looking to run high profile prize promotions across a number of jurisdictions to showcase their products and services.
Understanding consumer law, advertising regulation and even gambling laws is critical to running successful prize promotions and avoiding legal and commercial challenges. We are running a multi-jurisdictional webinar to assist brands and agencies by exploring a number of key issues.
