On line retailers in the UK could be forced out of business if new EU legislation becomes law. The draft amendment to the consumer rights directive would mean that UK retailers would have to supply goods or services to any member state. Currently, on line retailers can choose where they ship their goods to - such as restricting sales to the UK. Under Article 22a the EU want to remove this right and enable anyone living in the European Union the right to not only purchase from any EU based retailer but for the retailer to pay the cost of returning unwanted or faulty goods valued at €40 or more (Article 17)
The new directive, which could come into force as early as 2013, is aimed at harmonising consumer protection law across all 27 members. However, for many UK E-tailers the new regulations could mean a complete change in their business model with the possibility that many thousands who currently trade on E-Bay or Amazon for example could be forced out of business.
The current Distance Selling Regulations allow merchants to refund the original transaction (including outward postage) with the consumer picking up the postage cost of returning the items. This means that the cost of a cancelled sale is shared between the retailer and the customer (both lose lose) Under the new legislation, the retailer will bear the cost of both way postage.
The new legislation could have a major impact for many on line retailers. The time taken to source international couriers who will collect from overseas customers (at reasonable cost), the increased cost of enhanced packaging and the knowledge that the goods could be returned at your total cost.