Report Retail - TLT - 2015 - Retail Risk Report

RETAIL RISK REPORT
Key legal and regulatory changes in 2015
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Contents
Foreword
Retail regulatory timeline
Key regulatory changes
Reform to EU Brussels Regulation on cross-jurisdictional disputes
Export sanctions update
Consultation on sentencing for H&S offences closes
Magistrates Court given power to impose unlimited fines for regulatory offences
Shared parental leave
Pension freedoms
New CDM Regulations come into force
Groceries Code Adjudicator granted power to fine supermarkets
Government tightens privacy laws for unsolicited marketing communications
Cap on interchange card fees
Northern Ireland prize promotions
10
New EU Consumer Product Safety Regulations expected
10
CAP Code consultation on sales promotions
11
EU consumer dispute resolution legislation
11
EU to pass new Cyber Security Directive
12
UK deadline for implementing collective redress principles
12
Restriction on backdated holiday pay claims
13
UK deadline for implementing EU cyber crime law
13
Tax-free childcare scheme to be introduced
14
Single use plastic bag charges
14
The Consumer Rights Act
15
Deadline for compliance with Energy Savings Opportunity Scheme (ESOS)
15
New EU Data Protection Regulation proposals to be passed
16
Zero hours contracts
16
About us
17
Foreword
In January 2015 we published our
second Retail Growth Strategies
Report, which provided a window
into the thinking and intentions of
100 top UK retailers. As part of that
report, we asked retailers about their
legal and regulatory concerns for
2015 and found that cyber security,
changes to consumer rights and data
protection came out on top.
Building on this research, we have
developed this Retail Risk Report,
which provides a single point of
reference to help retailers understand
the legal and regulatory changes
taking place in the year ahead.
The report also provides some
very practical guidance to help
you prepare for these changes.
So what should retailers be looking
out for in 2015? Well, the year
is already shaping up to be very
eventful, with lots of regulatory
changes due to come into force.
Consumer rights law remains a
particularly hot topic for retailers.
At the end of 2014, new information
requirements in consumer contracts
were introduced and consumers were
given the right to take civil action
against traders for misleading
trading practices.
In October 2015 the Consumer Rights

Act will come into force, which will
enhance the rights of consumers. We
are also expecting other changes to
the consumer protection landscape
including the UK implementation of
EU regulations governing consumer
dispute resolution and product safety.
We are also expecting new EU Data
Protection Regulation proposals to be
passed towards the end of the year.
Given the importance of data to most
retailers, this is likely to have a major
impact and its vital that you start
preparing as soon as possible.
There are also a number of major
employment-related regulatory
changes including the introduction
of new shared parental leave rules
and a cap on claims in respect of
retrospective holiday pay.
We hope you find this report helpful
as you plan for the year ahead. If
you have any questions about these
changes or would like help preparing
for them then please do get in touch.
Kerry Gwyther
Partner and Head of Regulatory, TLT
T 0333 006 0155
E kerry.gwyther@TLTsolicitors.com
Retail regulatory timeline for 2015

Click on the links below to find out more about each change.
JANUARY 2015
Reform to EU Brussels
Regulation on crossjurisdictional disputes
18 FEBRUARY 2015
Consultation on sentencing
for H&S offences closes
JANUARY 2015
12 MARCH 2015
Magistrates Court
given power to impose
unlimited fines for
regulatory offences
5 APRIL 2015
6 APRIL 2015
MID-LATE 2015
Pension freedoms
Northern Ireland prize

promotions
9 JULY 2015
6 APRIL 2015
EU consumer dispute
resolution legislation
MID-LATE 2015
New EU Consumer
Product Safety
Regulations expected
6 APRIL 2015
JULY 2015
Groceries Code Adjudicator granted

power to fine supermarkets
EU to pass new Cyber

Security Directive
MID-LATE 2015
CAP Code consultation
on sales promotions
6 APRIL 2015
JULY 2015
UK deadline for implementing
collective redress principles
4 SEPTEMBER 2015
UK deadline for implementing
EU Cyber crime law
JULY 2015
Restriction on backdated
holiday pay claims
Government tightens privacy

laws for unsolicited marketing
communications
APRIL 2015
SEPTEMBER 2015
Tax-free childcare scheme
to be introduced
1 OCTOBER 2015
OCTOBER 2015
DECEMBER 2015
Deadline for compliance
with ESOS
LATE 2015 OR EARLY 2016

New EU Data Protection Regulation
proposals to be passed
IMPACT ON RETAILERS
HIGH
MEDIUM
LOW
Key regulatory changes

Reform to EU Brussels Regulation on cross-jurisdictional disputes
TRADE
JANUARY 2015
IMPACT ON RETAILERS
Medium
What is changing?
What should retailers do to prepare?
The 2001 Brussels Regulation, which determines

matters of jurisdiction and enforcement of
judgments within the EU, was replaced by the
Recast Brussels Regulation on 10 January 2015.
F
amiliarise yourself with the revised Regulation
if your company is, or could be, involved in
any cross-border disputes.
The default rule under the 2001 Regulation

that defendants should be sued in their home
courts remains unchanged. However, there are a
number of key changes, including:
A
consumer from a non-EU country will
now have the choice of whether to bring
proceedings in the courts of that non-EU
country or in the courts of the domicile/place
of establishment of the trader.
B
e prepared for consumers and employers
to take advantage of the wider choice of
jurisdiction granted to them under the
Recast Brussels Regulation.
E
nsure that, where possible, the same
jurisdiction provisions are incorporated into all
related agreements with suppliers to avoid a
dispute about which countrys courts should
have jurisdiction to hear disputes arising out
of the agreements.
Edmund Fiddick
Partner
T 0333 006 0208
E edmund.fiddick@TLTsolicitors.com
E
mployees will also have a wider choice of
where to bring an action in cross-border
employment disputes.
A
Member State court judgment will be
immediately enforceable in another Member
State court without the need to obtain a
declaration of enforceability.

JANUARY 2015
TRADE
IMPACT ON RETAILERS
High
What is changing?
The US and EU have already imposed an array of

sanctions on Russian individuals and businesses
in response to the annexation of Crimea and the
crisis in eastern Ukraine.
The evolving sanctions position heightens the

need for any businesses with a direct or indirect
Russian nexus to monitor their overseas trade
relations closely in case they are caught by the
current regime or any changes.
In a tit-for-tat move, Russia has banned the

import of certain food products from the US, the
EU, Norway, Canada and Australia.
Both the US and the EU could impose additional
sanctions if the situation in the Ukraine continues
to deteriorate.
It is vital that exporters routinely screen their

current and potential trading parties against
sanctions lists. This includes a consideration of
whether parties are owned or controlled by
sanctioned entities.
Consider your supply chain how is it affected
by the sanctions, do you need to put in place
contingency measures now in case the situation
worsens, are you exposed contractually if you
cannot import/export due to the sanctions?
Emma Flower
Partner
T 0333 006 0264
E emma.flower@TLTsolicitors.com
Consultation on sentencing for H&S offences closes

18 FEBRUARY 2015
HEALTH & SAFETY
IMPACT ON RETAILERS
Medium
What is changing?
The way that companies are fined for breaching

health and safety laws is due to change in 2015.
When then the proposed guidelines are adopted they

will not change the law, just the way companies
are sentenced.
The draft sentencing guidelines cover health and

safety offences, corporate manslaughter and food
safety and hygiene offences.
The main change in the draft is that the level of
fines will be linked to annual turnover. This means
that larger companies can expect to pay much
higher fines than smaller companies for comparable
offences. It is also expected that the level of fines
will increase across the board.
The public Consultation closed on 18 February
2015, with the results to be published later
in spring.
However, retailers with large turnovers may wish to

re-assess the risks associated with health and safety
breaches given that the fines involved are now likely
to be much higher.
Under the new sentencing guidelines, the costs
of carrying out periodic health and safety audits
throughout your company are likely to be minor
compared to the costs if something goes wrong.
Duncan Reed
Associate
T 0333 006 0742
E duncan.reed@TLTsolicitors.com
The proposals are expected to be adopted, subject

to further amendments, later in 2015.
Magistrates Court given power to impose unlimited

fines for regulatory offences
12 MARCH 2015
REGULATORY
IMPACT ON RETAILERS
High
What is changing?
The upper limits on most fines that can be

imposed in the Magistrates Court have been
removed. The new rules apply to a number of the
main regulatory risks in the retail sector such as
consumer protection and product liability law.
Retailers need to be aware of the uncertainty created

by the new rules with regard to the level of sentencing
of many relevant regulatory offences. Until now,
organisations have known what the worst case scenario
would be in terms of fines in the Magistrates Court
because of the statutory cap on fines.
Previously, fine levels in the Magistrates Court

were controlled by five different statutory levels
(200, 500, 1,000, 2,500 and 5,000). In
some cases higher fines beyond this scale were
possible, for example 20,000 for some health
and safety offences and 50,000 for certain
environmental offences.
The changes mean that Magistrates now have the

power impose unlimited fines for breaches of the
following regulatory offences:
consumer protection law;
liability for defective products;
This has now changed. For all offences committed

after 12 March 2015, the limits on all fines of
5,000 and above have been scrapped.
waste management offences;
Any statutory limits on fines of below 5,000 for

less serious offences (ie levels 1-4 offences) will
remain in force.
a
ll health and safety law, including fire safety
and incidents where employees are injured
at work.
product labelling law; and
The change emphasises the need for retailers

to ensure legal compliance in these areas.
Duncan Reed
Associate
T 0333 006 0742

5 APRIL 2015
HR
IMPACT ON RETAILERS
Low
What is changing?
From 5 April 2015, parents are entitled to take

Shared Parental Leave (SPL). SPL is available
in respect of children whose expected week of
childbirth (EWC) begins on or after 5 April 2015.
The SPL scheme also applies identical provisions
to the adoption process.
The key is to get policies up to date and to ensure

that HR and managers are ready to deal with requests.
Employers operating enhanced maternity pay
schemes need to consider whether enhanced
shared parental pay will be offered.
Richard Brennan
A mother is able to end her maternity leave

and share the untaken leave with the other
parent. SPL can either be taken consecutively or
concurrently by parents. Parents can also request
periods of discontinuous leave.
Associate
T 0333 006 0684
E richard.brennan@TLTsolicitors.com
Parents are not obliged to take SPL and 52

weeks of maternity leave shall remain the default
position. However, additional paternity leave is
no longer available.
Eligible parents are entitled to statutory shared
parental pay which closely matches the
maternity pay scheme.
Pension freedoms
6 APRIL 2015
PENSIONS
IMPACT ON RETAILERS
Medium
What is changing?
From 6 April 2015, individuals over the age

of 55 are allowed full access to their defined
contribution (DC) pension pots.
Employers need to:
Previously, pensioners could only purchase

annuities from insurance providers or withdraw
limited sums from their savings each year.
Now:
P
rovided pension scheme documents allow the
flexibilities, individual members of DC schemes
can access all their savings at any time, subject
to taxation at their marginal rate. 25% of any
lump sum withdrawals will be tax free.
If increased flexibility isnt offered in a
members current scheme, individuals can apply
to transfer to a different scheme which does.
Decide how much flexibility to offer members.

C
heck current pension scheme arrangements
to consider:
if the scheme documents allow the new
flexibilities to be implemented; and
James Dean
whether

these documents need to be
amended to include these changes.
Partner
T 0333 006 0717
E james.dean@TLTsolicitors.com
D
ecide whether to allow any defined benefit
(DB) scheme members to transfer their
savings to a DC scheme to benefit from the
new flexibilities.
E
nsure DB scheme members with pots over
30,000 receive free independent guidance
before agreeing any transfers.
P
repare updated communications for members
and be ready to answer their queries.

6 APRIL 2015
HEALTH & SAFETY
IMPACT ON RETAILERS
Low
What is changing?
The amended Construction (Design and

Management) Regulations 2015 came into force
on 6 April 2015.
The requirements will be of note for any retailer

involved in construction projects.
T
he headline change is the decision to scrap
the role of CDM co-ordinator and replace it
with a newly defined role of Principal Designer.
T
he new regime will also apply for more shortterm projects, including many which would
have been deemed too small to trigger the
requirements under the previous
CDM Regulations.
In addition, there are enhanced duties under
the Regulations for Clients, which could
include retail developers.
If a retailer is heading-up a large project

(for example constructing a new retail premises),
it will need to consider the changes in rules
for the appointment of Principle Designers.
R
etailers for whom construction works are being
carried out should also consider their enhanced
duties as the Client under the Regulations.
Duncan Reed
Associate
T 0333 006 0742
E
ven if a retailer is carrying out a minor project
(for example a refurbishment or extension),
the CDM Regulations might be triggered under
the new rules if more than one contractor
is engaged.
Groceries Code Adjudicator granted power to fine supermarkets

6 APRIL 2015
SUPERMARKETS
IMPACT ON RETAILERS
Low
What is changing?
Legislation giving the Groceries Code Adjudicator

(GCA) the power to impose fines of up to 1% of
a supermarkets annual turnover (which could
amount to hundreds of millions of pounds) came
into force on 6 April 2015.
The major supermarkets have already been

taking steps to ensure compliance with the Code
including appointing a code compliance officer
and giving training to staff.
The GCA, which was set up in January 2013 to

ensure that the UKs 10 major supermarkets treat
their suppliers fairly, has previously only been
able to name and shame grocers that breach the
Groceries Supply Code of Practice (the Code).
There has been criticism that the legislation does
not act retrospectively (meaning years of trading
activity will go unchecked) and that the GCA
may not have enough resources to investigate
possible breaches of the Code properly.
Consequently, suppliers may decide that the
best way to seek redress against a retailer that
has breached the Code is by bringing their own
arbitration claim; however, suppliers appetite
to challenge retailers directly remains to be seen.
Moreover, the recent legislation and increased

public scrutiny may encourage supermarkets to
ramp up their compliance efforts.
Miles Trower
Partner
T 0333 006 0574
E miles.trower@TLTsolicitors.com
Government tightens privacy laws for unsolicited

marketing communications
6 APRIL 2015
DATA PROTECTION
IMPACT ON RETAILERS
Medium
What is changing?
On 6 April 2015 the Data Protection Act

1998 was amended to make it easier for the
ICO to impose financial penalties in relation
to unsolicited direct marketing calls, texts
and emails.
Retailers who send out mass electronic

communications to members of the public when
promoting products or sales need to think carefully
about the risks involved. Are you relying on consent
that has been legitimately obtained?
The previous legislation had been criticised by

privacy campaigners who said it was too difficult
for the ICO to fine organisations guilty of making
unsolicited marketing communications because
of the requirement to prove the conduct caused
substantial damage or substantial distress.
What the changes mean is that if a large number

of marketing communications are sent out without
valid consent, a retailer could be liable for
monetary penalties even if no harm or distress
is actually caused.
Under the amended legislation, this requirement

has been dropped.
In addition, the government has confirmed that
it will be looking at whether the powers the ICO
has to hold to account board level executives are
sufficient or whether more needs to be done.
Alison Deighton
Partner
T 0333 006 0160
E alison.deighton@TLTsolicitors.com
This should be understood in the context of recent

findings by the Nuisance Calls Task Force, which
highlighted that too many organisations are relying
on consents that have been illegitimately obtained,
for example because the consumer was confused
and did not know what they were signing up for.
Consents obtained through third parties without
checking whether or not they are valid is also
a problem.

APRIL 2015
PAYMENT SERVICES
IMPACT ON RETAILERS
Medium
What is changing?
The European Parliament voted in favour of

Regulation on multilateral interchange fees for
card-based payment transactions in March 2015.
Retailers need to check that the banks processing

their payments apply the new caps on interchange
fees appropriately.
The Regulation plans to introduce a cap on

interchange fees that banks charge retailers
to process payments. The cap is due to apply
to both cross-border and domestic card-based
payments.
At a European-wide level the expectation is that

this cap will result in significant cost-savings for
retailers. In conjunction with the prohibition
on surcharging on these types of card (as being
brought in under the Payment Services Directive
2), it is expected to lead in turn to cheaper goods
and services for consumers.
For debit card transactions the cap will be 0.2%

of the transaction value and for credit card
transactions the cap will be 0.3%.
The caps will take effect 6 months after the
Regulation comes into force.
However, the banks will have reduced revenue,

the shortfall of which may not be entirely offset
by the expected increase in payment volumes.
Consequently, the banks may look for other
potential revenue streams.
Dominic Gilmore
Associate
T 0333 006 1414
E dominic.gilmore@TLTsolicitors.com
Northern Ireland prize promotions

MID-LATE 2015
ADVERTISING AND PROMOTIONS
IMPACT ON RETAILERS
Low
What is changing?
Many retailers will be aware that running prize

promotions in Northern Ireland is complicated
by the countrys strict anti-gambling laws. The
rules prohibit entries into a prize draw that are
contingent on the entrant making a purchase.
Alternative free entry mechanics have to be
provided in Northern Ireland.
Although the changes have not yet been finalised,
However, following a public consultation,

Ministers have announced that this rule may be
changed to bring Northern Irish rules in line with
the rest of the UK.
it appears likely that the rules in Northern Ireland

will be relaxed.
This is good news for retailers who of course want
their prize promotions to have as broad a territorial
scope as possible. Assuming the proposed changes
go through, it will not be necessary to adapt the
entry mechanics used in England, Scotland and
Wales for Northern Ireland.
Duncan Reed
Associate
T 0333 006 0742
New EU Consumer Product Safety Regulations expected

MID-LATE 2015
PRODUCT LIABILITY
IMPACT ON RETAILERS
Medium
What is changing?
The Consumer Product Safety Regulations

(CPSRs) are currently going through the European
Parliament but are expected to come into effect
around mid-late 2015.
The CPSRs introduce certain requirements for

manufacturers, for example ensuring that products
are marked with a batch number and place of origin,
to assist with identification and traceability.
The new regulations will change the rules in

terms of product labelling and traceability.
However, these requirements will impact on

retailers too.
R
etailers will have to check that relevant markings
are present on the products they supply.
F
ocusing on your suppliers, are the products
your organisation buys compliant with the
CPSRs? Do you, and your suppliers, have
sufficient procedures in place to evidence this?
10
Duncan Reed
Associate
T 0333 006 0742
CAP Code consultation on sales promotions

MID-LATE 2015
ADVERTISING AND PROMOTIONS
IMPACT ON RETAILERS
Low
What is changing?
The Committee of Advertising Practice (CAP)

consulted on changing the rules for sales
promotions in December 2014. The amended CAP
Code is likely to come into force later in 2015.
Assuming the proposed changes are adopted,

they will make life easier for retailers when
running promotions involving limited stock.
The existing CAP Code places an onerous burden

on promoters in terms of ensuring they have
sufficient stock to meet demand before running a
promotion. At present, promoters not only have to
make a reasonable estimate of customer demand
before running a promotion, they also have to
show they are capable of meeting that demand.
However, CAP is likely to dilute this requirement
by enabling promoters to comply with the Code
by giving sufficient warning to customers about
limited availability.
However, if retailers are unable to accurately

predict what the level of demand will be, they
must make sure that the advertisement is
sufficiently clear as to the extent of availability
and likely demand of stock.
For example, the advertisement could include a
statement such as limited availability - less than
5,000 items available.
Kerry Gwyther
Partner
T 0333 006 0155
Broad statements such as subject to availability,

however, are unlikely to be enough to comply
with the CAP Code.
EU consumer dispute resolution legislation

9 JULY 2015
CONSUMER PROTECTION
IMPACT ON RETAILERS
Medium
What is changing?
On 9 July 2015 the new Alternative Dispute

Resolution (ADR) Directive comes into force in
the UK.
If you are a retailer, you need to check whether

your own consumer dispute resolution procedures
comply with the minimum requirements in the
ADR Directive.
This lays down the minimum standards for

consumer ADR schemes and proposes to create
a centralised system to resolve disputes if a
traders ADR scheme is inadequate.
It is also important to be aware of the Online
Dispute Resolution (ODR) Directive further on the
horizon. This is expected to come into effect in
January 2016.
The ODR Regulation aims to provide a free
EU-wide system for resolving disputes between
consumers and traders online.
11
Retailers that sell products online across Europe

also need to familiarise themselves with the
online dispute resolution mechanisms that will be
introduced through the ODR Directive next year.
Kerry Gwyther
Partner
T 0333 006 0155
EU to pass new Cyber Security Directive

JULY 2015
CYBER SECURITY
IMPACT ON RETAILERS
Medium
What is changing?
The EU Cyber Security Directive is expected to be

passed by the EU in July 2015.
Although the Directive is still at draft stage, the

requirement to have in place procedures to combat
cyber crime and report attacks to a regulator could
apply to retailers if a wide definition of e-commerce
platforms is adopted.
The Directive seeks to impose minimum

obligations on certain market operators to
harmonise and strengthen cyber security across
the EU. This could apply to energy suppliers,
e-commerce platforms and app stores.
Some of the obligations placed on market
operators include the requirement to take steps
to prevent cyber attacks and to report cyber
security breaches to a regulator such as the
Information Commissioners Office.
In addition, it is thought that the application of

the Directive to food supply chain operatives
could potentially bring supermarkets and other
food retailers within the scope of the new rules.
Once adopted, Member States will have 18 months
to enact national implementing legislation,
meaning the Directive is expected to come into
force in the UK around the beginning of 2017.
Alison Deighton
Partner
T 0333 006 0160
However, retailers should keep an eye on

developments now, especially if complying with
the Directive will involve upgrading network
security systems.
UK deadline for implementing collective redress principles

JULY 2015
CONSUMER PROTECTION
IMPACT ON RETAILERS
Medium
What is changing?
Back in July 2013, The European

Commission released a series of non-binding
recommendations requiring EU Member States
to introduce collective redress mechanisms to
enable large groups of consumers to bring group
damage claims against companies.
Under the Consumer Rights Act, if a consumer

brings an action against a company for breach of
competition law, all other consumers of the same
class will automatically be deemed a part of that
action (and therefore entitled to damages) unless
they expressly opt-out. This exposes companies
to much greater damages.
Duncan Reed
Consumers can still bring collective actions against

companies in other areas too, but only if they all
expressly opt-in to the claim.
Associate
T 0333 006 0742
Although the recommendations are non-binding,

they reflect a desire within the EU to encourage
collective redress.
We may see more development in this area,
but for the time being the only area the UK
government intends to enhance its collective
redress procedures is in the area of competition
law. These changes will come into force with the
new Consumer Rights Act in October (see below).
Nevertheless, the recommendations of the

European Commission appear to signal a trend
towards greater use of collective redress, which
could embolden consumers to bring more group
actions, for example if they have been sold
defective products. An emergence of US-style
class action cases would represent a
significant change.
Retailers should monitor this carefully.
12
Restriction on backdated holiday pay claims

JULY 2015
HR
IMPACT ON RETAILERS
Medium
What is changing?
Claims in respect of retrospective holiday pay will

be capped at two years.
Retailers need to correct holiday pay calculations

going forward. It will therefore be wise to undertake
a comprehensive review of pay practices to assess
potential financial liability.
This is an important development following some

recent case law which suggested that many
employers may have been incorrectly calculating
holiday pay. This is a particular problem for
retailers who may not have included overtime or
commission in holiday pay calculations.
The extent to which retrospective back pay
claims could be pursued remained an arguable
point.
Consideration should also be given to the

likelihood of back pay claims and the potential
liability. Many unions are raising the issue and are
seeking to negotiate back pay settlements. Care
should be taken before making any concessions to,
or deals with, the unions.
Richard Brennan
Associate
T 0333 006 0684
This is welcome legislation as it offers some

certainty to employers provided that the claims
are not submitted before 1 July 2015.
UK deadline for implementing EU cyber crime law

4 SEPTEMBER 2015
CYBER SECURITY
IMPACT ON RETAILERS
Medium
What is changing?
The European Commission passed a Directive in

August 2013 requiring Member States to tighten
up cyber crime laws at national level across
the EU.
The UK government has yet to announce how it

plans to implement the EU Directive, but there is
a possibility it could impact upon retailers cyber
security policies.
The UK has to implement the provisions of the

Directive by September 2015.
For example, the government may introduce

legislation requiring organisations to report cyber
security incidents to the authorities and ensure
that they have in place procedures to spot
suspicious activity by employees.
In order to comply with the minimum standards

set out in the Directive, the UK may need to
create new criminal offences, for example in
relation to illegal access to information systems,
illegal data interference and illegal interception.
While it is too soon to say the extent to which

the new rules will apply to retailers, the Bank of
England has recently advised the government
that cyber security breaches are one of the main
risks to the UKs economic stability, so there is still
a potential for the government to go beyond the
provisions of the Directive and bring in even
tougher cyber crime laws.
This is an area retailers should monitor closely.
13
Alison Deighton
Partner
T 0333 006 0160
Tax-free childcare scheme to be introduced

SEPTEMBER 2015
HR
IMPACT ON RETAILERS
Low
What is changing?
In autumn of this year the governments new

tax-free child care scheme is scheduled to
commence. An employee will be able to open a
childcare account to pay someone to look after
their child or children. It will operate like a bank
account but for every 0.80 an employee pays
into the account the government will top up an
extra 0.20.
Although employers are not required to play a

role in the tax-free childcare scheme they can,
for example, as part of their wider family friendly
policies, offer support including:
Unlike the existing employer-supported childcare

schemes, the tax-free childcare scheme does not
rely on employers offering it and any working
family can use it provided they meet the
eligibility criteria.
Existing employer-supported childcare schemes
will be closed to new entrants but will continue
to be available for employees registered with the
schemes for as long as the employer offers it or
until the employee decides to switch to the new
scheme. An employee will be required to give
three months notice to their employer if they
decide to switch to the governments
childcare scheme.
m
aking employees aware of the new scheme
and referring them to Gov.UK for advice in tax
free childcare (for example, when an employee
is going on or returning from parental leave);
and/or
m
aking payments into an employees childcare
account direct using their net pay (payments
cannot be made from the employees gross pay)
or as additional payments. All additional
payments will be classed as earnings and,
therefore, will be subject to tax and National
Insurance Contributions
Richard Brennan
Associate
T 0333 006 0684
Employers will also need to decide whether to

continue offering schemes for employees already
registered.

1 OCTOBER 2015
ENVIRONMENTAL
IMPACT ON RETAILERS
Medium
What is changing?
In October, Parliament will implement EU law

introducing a mandatory 5p charge for single use
plastic bags. This law is already in force in Wales
and Scotland.
The charges are mainly targeted at supermarkets,

but will apply to any retailer that provides single
use plastic bags.
Organisations found to breach the new

regulations can be fined.
D
oes your company want to go down the route
of cutting out plastic bags altogether, as some
have done, or will you introduce the charges?
S
taff will need to be trained and informed about
the consequences of breaching the regulations.
14
Kerry Gwyther
Partner
T 0333 006 0155

OCTOBER 2015
CONSUMER PROTECTION
IMPACT ON RETAILERS
High
What is changing?
The Consumer Rights Act will become the

centrepiece of UK consumer protection
legislation. It will:
If you are a retailer you need to:
o
utline more clearly what a consumers rights
are in terms of quality of goods or services and
delivery of goods;
c odify the unfair terms that will be
unenforceable in business to consumer
contracts;
o
utline consumer remedies for defective
products, including when a customer is able to
demand a repair, replacement, price reduction
or full refund;
c reate new consumer rights in terms of digital
content that is defective or not as described;
and
introduce new powers for consumers to bring
large-scale class action claims for damages
against companies that are found to have
breached competition law.
B
e prepared for customers to assert their rights
citing the new legislation.
C
heck customer return, refunds and repairs
polices. Do they comply with the remedies laid
down in the Act?
Kerry Gwyther
T
rain customer service teams so that they
understand the new legislation before the Act
comes into force.
Partner
T 0333 006 0155
B
ear in mind that consumer damage claims
arising out of breaches of competition law are
likely to be much higher than before as the new
laws will make it easier to assemble huge
classes of consumer litigants.
If your business sells digital content online, you
need to be aware of consumer rights in this area,
including the right for consumers to claim
compensation for damage to devices and/or lost
data after using or installing defective
digital content.
Deadline for compliance with Energy Savings

Opportunity Scheme (ESOS)
DECEMBER 2015
ENVIRONMENTAL
IMPACT ON RETAILERS
Medium
What is changing?
5 December 2015 is the deadline by which an

organisation that falls within the scope of the
ESOS energy audit has to report its compliance
to the Environment Agency.
Large retailers that fall within the scope of ESOS

will have to:
m
easure their total energy consumption over
a 12 month period;
c onduct an energy audit to identify cost-effective
energy efficient recommendations; and
o
btain the necessary board level approvals
within the organisation.
The EA must be notified before 5 December once
the above requirements have been implemented.
15
Duncan Reed
Associate
T 0333 006 0742
New EU Data Protection Regulation proposals to be passed

EXPECTED LATE 2015 OR EARLY 2016
DATA PROTECTION
IMPACT ON RETAILERS
High
What is changing?
The new EU Data Protection Regulation will

harmonise data protection rules across the EU.
Crucially, they also strengthen data protection
rights for individuals and increase the regulatory
burden on businesses.
Retailers that have not yet started to think about

the new Data Protection Regulation need to do so
without delay.
The legislation has not yet been finalised, but key

changes are expected to include:
introducing much higher maximum fines for
organisations that breach data protection rules;
broadening the scope of personal data;
m
aking the appointment of a Data Protection
Officer (DPO) compulsory for larger
organisations; and
m
aking it a mandatory requirement for
organisations to notify a data protection
authority if it detects a data protection breach
(this would be the Information Commissioners
Office in a UK context).
The implication of the new laws are wide-ranging,

but the key points to be aware of are as follows:
A
full audit of data protection procedures should
be carried out to ensure that your organisation
is complying with the new laws. If you dont
have a DPO, should you have one? Is your
organisation processing personal data in line
with the new Regulation? Do you have
procedures in place for notifying the ICO
following data protection breaches?
Alison Deighton
Partner
T 0333 006 0160
O
rganisations are facing the prospect of
receiving fines of up to 100m or 5% of their
global annual turnover for serious breaches,
putting data protection fines on a par with
anti-trust and anti-bribery sanctions. This has
been described a game-changer: retailers who
ignore data protection rules do so at their peril.
Zero hours contracts

TIMESCALES UNCERTAIN
HR
IMPACT ON RETAILERS
High
What is changing?
The government proposes a prohibition on

employers restricting zero hour workers and
low income workers from working for other
businesses. It is also proposed that such
workers will have the right not to be subjected
to detriment as a result of working for other
businesses and there will financial penalties for
employers seeking to avoid the ban.
Retailers should review their practice to assess

the use of zero hours contracts.
This is clearly a political issue and we would not

be surprised to see further changes or proposals
following the election. For example, Labour
proposes limiting the use of zero hour contracts
to short periods (12 weeks) if it forms a
new government.
16
If retailers do still feel the need to prevent

workers undertaking work for other business then
alternative contract structures should be considered.
Richard Brennan
Associate
T 0333 006 0684
About us
Our multi-disciplinary team of retail lawyers has
a national reputation for advising on all aspects
of retail business and retail portfolio management.
TLTs understanding of the specific and varied
requirements of retailers allows our clients to
get ahead of the competition in this dynamic
and fast-moving industry.
Get in touch
Services for retailers

Advertising, marketing
and promotions
Brand management and protection
Competition issues
Construction, refits and capital
Health, safety and environmental

International partnering
Corporate structures, JVs,
Planning
Procurement of systems and
services, and outsourcing
Distribution, logistics and fulfilment
Product liability and recall
Employment and pensions
Supply chain disputes
Estate management, acquisitions
Technology and e-commerce
and development
your business or help you deal with

any legal or regulatory challenges
you face, please do get in touch.
distribution and product licensing

Labelling and packaging
Data protection and privacy
If we can support you in growing
arrangements, including franchise,
investment
acquisitions and disposals
17
Financial services regulation
Perran Jervis
Partner and Head of Retail, TLT
T 0333 006 0320
E perran.jervis@tltsolicitors.com
II
tltsolicitors.com/contact
BELFAST BRISTOL EDINBURGH GLASGOW LONDON MANCHESTER
No part of this publication may be reproduced

or stored in a retrieval system, in any forms
or by any means, electrical, mechanical
photocopying or otherwise without prior
consent of the publishers.
The view and forecasts presented in this report,
represent independent findings and conclusions
drawn from a study by Conlumino. Conlumino
can accept no responsibility for any decisions
made on the basis of this information or for any
omissions or inaccuracies that may be contained
in this report.
The views expressed in this report are the
views of third parties and do not necessarily
reflect the views of TLT LLP (TLT). TLT takes
no responsibility for the veracity of information
contained in third party narrative and no
warranties or undertakings of any kind, whether
expressed or implied, regarding the accuracy or
completeness of the information given.
TLT takes no liability for the impact of
decisions made, or not made, based on the
information contained and the views expressed
in any third-party guides or articles.
BACK TO TIMELINE
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Northern Ireland) operate under the TLT brand
and are together known as TLT. Any reference
in this communication or its attachments to
TLT is to be construed as a reference to the
TLT entity based in the jurisdiction where the
advice is being given. TLT LLP is a limited liability
partnership registered in England & Wales
number OC308658 whose registered office is
at One Redcliff Street, Bristol, BS1 6TP. TLT LLP
is authorised and regulated by the Solicitors
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RETAIL RISK REPORT

Key legal and regulatory changes in 2015

Retail regulatory timeline

Key regulatory changes

Reform to EU Brussels Regulation on cross-jurisdictional disputes

Export sanctions update

Consultation on sentencing for H&S offences closes

Shared parental leave

New CDM Regulations come into force

Groceries Code Adjudicator granted power to fine supermarkets

Government tightens privacy laws for unsolicited marketing communications

Cap on interchange card fees

Northern Ireland prize promotions

New EU Consumer Product Safety Regulations expected

CAP Code consultation on sales promotions

EU consumer dispute resolution legislation

EU to pass new Cyber Security Directive

UK deadline for implementing collective redress principles

Restriction on backdated holiday pay claims

UK deadline for implementing EU cyber crime law

Tax-free childcare scheme to be introduced

Single use plastic bag charges

The Consumer Rights Act

Deadline for compliance with Energy Savings Opportunity Scheme (ESOS)

New EU Data Protection Regulation proposals to be passed

Zero hours contracts

In October 2015 the Consumer Rights

Retail regulatory timeline for 2015

Northern Ireland prize

New CDM Regulations come into force

Groceries Code Adjudicator granted

EU to pass new Cyber

Government tightens privacy

LATE 2015 OR EARLY 2016

Key regulatory changes

What should retailers do to prepare?

The 2001 Brussels Regulation, which determines

The default rule under the 2001 Regulation

Export sanctions update

What should retailers do to prepare?

The US and EU have already imposed an array of

The evolving sanctions position heightens the

In a tit-for-tat move, Russia has banned the

It is vital that exporters routinely screen their

Consultation on sentencing for H&S offences closes

HEALTH & SAFETY

What should retailers do to prepare?

The way that companies are fined for breaching

When then the proposed guidelines are adopted they

The draft sentencing guidelines cover health and

However, retailers with large turnovers may wish to

The proposals are expected to be adopted, subject

Magistrates Court given power to impose unlimited

What should retailers do to prepare?

The upper limits on most fines that can be

Retailers need to be aware of the uncertainty created

Previously, fine levels in the Magistrates Court

The changes mean that Magistrates now have the

This has now changed. For all offences committed

waste management offences;

Any statutory limits on fines of below 5,000 for

product labelling law; and

The change emphasises the need for retailers

If a retailer is heading-up a large project