Small firms threatened by 'crazy' consumer rules change

Thousands of UK small businesses are at risk of being forced to close down if proposed amendments to EU consumer rights are passed, an entrepreneur has warned.

Quentin Pain, founder of accounting software firm Accountz, made the claim following the backing by MEPs of new rules aiming at protecting shoppers making purchases in a shop, on the phone, online or by mail order. 

In amendments to the Consumer Rights Directive, the amount of time a consumer can change their mind about a purchase would be doubled to 14 days, while businesses would be required to cover the cost of returns worth more than €40 (£35). In addition, retailers would be required to sell into any EU country.

Pain said the changes, which are subject to negotiation between the European Parliament and the Council of Ministers before becoming law, could have serious ramifications on small business growth due to the extra risks, complexities and costs associated with trading online.

"The proposed changes to the Consumer Rights Directive are absolutely crazy and will be extremely harmful to the recovery and growth of online trading," the entrepreneur commented. "The internet is key to the success of any SME; it enables small businesses to offer choice and price competitiveness.

"These amendments will go a huge way to deterring the growth of start-ups which in turn will have a huge ripple effect on the entire economic recovery. The European Parliament have really been ill-informed and have completely disregarded the thoughts and opinions of the retail community as a whole. It's EU legislation gone mad."

According to IMRG, the trade body for ecommerce companies, the draft amendments could cost online retailers around £8.8bn in delivery charges.