The impact of the levy has already been much reduced following lobbying by heavy industry, but BFA is aware that the footwear manufacturing industry is in no state to bear extra costs and invites members facing cost rises to contact us to consider a collective approach to Government. A new EU Directive on the Sale of Consumer Goods and Associated Guarantees is required to become UK law no later than January 2002. Many provisions are already a feature of UK law, but a new twist will see retailers required to prove that goods they sold to consumers were without fault at the time of delivery. This new requirement relieves consumers of the burden of proof, and will only apply for six months after delivery. Retailers are concerned that they will be responsible for advertising claims made by suppliers, and may seek to improve returns clauses in their contracts with suppliers.
Laws governing sales between suppliers and retailers are unaffected by the Directive.
Fees are split between retailers and customers, with the latter receiving a refund in the event they are proved correct. Sponsorship of the Code is under discussion with the Independent Footwear Retailers Association, who may choose to sponsor it themselves. The poor effect on customer loyalty of disputed returns is recognised in a new initiative from Denmark. Any dispute then takes place off-line between retailer and supplier. E-commerce with component suppliers With support from the EU funded Footprint project, a pilot website for order tracking between footwear manufacturers and component and leather suppliers has been created to encourage firms to think about the benefits and implications of electronic commerce further up the supply chain.