Posts Tagged ‘Retail’

Managing the Olympics

Tuesday, January 31st, 2012

With 179 days to the Olympics, and an anticipated 70,000 volunteers working on the games, ACAS has issued guidance encouraging businesses to think about arrangements early to avoid last minute disruption.

There is no legal entitlement to leave for voluntary work and it may be necessary to adopt a ‘first come, first serve’ policy and consider whether leave will be unpaid or paid. This can also apply where a number of employees request annual leave on the same day.

You should consider how to deal with employees who have travel disrupted and whether to implement flexible working or remote working. Sickness absence may also increase on particular days which return to work interviews may assist with. There may be performance issues with staff watching television on their computers which could be assisted by allowing this at particular times of the day.

Whilst the prospect of considering these points may be daunting, effective planning will minimise the impact of the games whilst flexibility will hopefully boost morale.

Posted by Amy Dowling, who specialises in contentious and non-contentious employment matters including defence at employment tribunals, unfair dismissal, redundancy and discrimination; also drafting contracts, compromise agreements, policies and procedures.

Amy Dowling

Amy Dowling
0207 7337 1002
adowling@brownejacobson.com

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Why landlords might benefit from monthly rents

Friday, January 20th, 2012

Pumpkin Patch is the latest retailer to go into administration. The administrators have said that they will continue to trade the relevant stores whilst they look for a buyer. If a company in administration retains premises for the benefit of creditors, the administrator must treat the rent that falls due under the lease during the period as a necessary disbursement and therefore it will rank as an “expense”, which is higher up the chain of priority than an unsecured debt. Whilst this might sound like some welcome news for landlords, unfortunately it is only rent that falls due during occupation. If the Pumpkin Patch leases have rent payable on the usual quarter days then the next payment will not fall due until 25th March and by this time the landlord may well find that the administrators are no longer in occupation. Monthly rents are usually seen as a benefit to tenants but in this scenario the landlord could benefit as well.

Kirsty Black

Kirsty Black
0121 237 3958
kblack@brownejacobson.com

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Landlords short-changed by La Senza and Blacks pre pack deal

Tuesday, January 10th, 2012

It would seem that it is not only the tenants that are continuing to suffer during the current harsh economic conditions. Recent press has followed the decline of two well established brands, namely La Senza and Blacks. Both retailers appointed top accountancy firms to implement emergency rescue plans, known as “pre-pack administrations” .

A pre-pack administration affords struggling companies some protection from their creditors. However, landlords as unsecured creditors, are unable to protect their interests as they are unaware of the pre-pack administration.

Whilst the sale of both the La Senza and Blacks businesses has prevented a further two faces from disappearing from the high street, it has left landlords feeling the sting of a further two pre-pack administrations. Perhaps the sensible solution is for landlords to enter into negotiations with their tenants at the first signs of trouble as surely a reduced income is better than having a huge rental bill wiped clean courtesy of a pre-pack administration?

Suki Tonks

Suki Tonks
0115 976 6519
stonks@brownejacobson.com

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2012 – what to expect in employment law

Friday, January 6th, 2012

The dawn of 2012 brings the annual discussion about upcoming employment law developments. The following may be of particular interest to employers:

  • The qualifying period for unfair dismissal is expected to be increased from one to two years in April
  • Pensions auto-enrolment for larger employers begins in October
  • Consultations are to be progressed on the introduction of the following:
    • ‘protected conversations’ between employers and employees about employment issues
    • a standard text for compromise agreements
    • allowing smaller employers to execute ‘no fault’ dismissals on payment of a prescribed sum
    • early compulsory conciliation of all claims
    • introduction of fees to bring a tribunal claim

The government is keen to reduce the amount of red tape in employment law to support business and boost the economy. This will be welcomed by employers. However care must be taken to ensure that the changes improve the effectiveness of the current framework, and do not simply add to employers’ administrative burden.

Posted by Hayley Prescott, who specialises in employment law, both contentious and non-contentious, including tribunal claims, unfair dismissal, redundancy, policies and procedures, compromise agreements, contractual issues and general advisory work.

Hayley Prescott

Hayley Prescott
0115 976 6116
hprescott@brownejacobson.com

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Planning the retail mix – mobile phone signals used to monitor consumer movement

Friday, January 6th, 2012

Go to the Princesshay shopping centre in Exeter and you will find signs reading: “To improve our customer service we monitor the use of mobile phones to help show us how this centre is used by its customers. No personal data is stored at any time.”

Footpath is a system marketed as a “unique breakthrough product” providing 24/7 monitoring of pedestrian behaviour using mobile phone technology. Use of the system in shopping centres enables the centre to gather information to help understand, amongst other things, which retail sites are complementary, shopper flow volumes and flow and the potential value of advertising space. Shoppers too benefit from better retail mixes and more effective planning around centre bottle-necks.

But, civil rights campaigners think otherwise. Tracking mobile phone signals without consent is, they cry, an invasion of privacy. No express consent is given but also no personal information is collected. Only when mobile phone providers cooperate with data collectors will there be any real threat to privacy.

Posted by Paula Dumbill, who specialises in non-contentious intellectual property, particularly trade marks and copyright, advising in particular on IP exploitation and collaboration agreements and trade mark portfolio management.

Paula Dumbill

Paula Dumbill
0115 976 6059
pdumbill@brownejacobson.com

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Christmas comes early for card-carrying consumers

Friday, December 23rd, 2011

Businesses which make consumers “pay for paying” using their card on the internet have been heavily criticised by consumer groups. Consumers find it unfair to be charged (a) more than the cost to the business of processing the transaction (b) per item purchased and (c) without being notified of the charge up front. Today it has been announced that the Government intends to ban this practice.

This is perhaps a non-story because last week, the EU Consumer Rights Directive came into force. This requires the UK to make a number of changes to consumer law (some positive, some negative) by December 2013 (including such a ban), so that consumer protection is fully harmonised across the EU. But the Government does propose to put a ban in place earlier, in 2012.

To get a PR advantage over slower competitors, businesses might want to make the changes to their terms and conditions and websites before they become mandatory. Consider it an early Christmas present to your customers!

Posted by Oliver Sweeney, who specialises in regulatory matters; including compliance, representation e.g. company prosecutions and public inquiries; transport issues; commercial litigation, including reputation management, contractual litigation and injunctions.

Oliver Sweeney

Oliver Sweeney
0115 976 6247
osweeney@brownejacobson.com

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Mary Portas unveiled!

Tuesday, December 13th, 2011

Mary Portas has today unveiled her long awaited review of the high street! The review contains a number of practical steps and no less than 28 recommendations to try to get shoppers to return to their local high streets and to make it easier for retailers to operate. These include:

  • initiatives to get town centres “running like businesses”
  • planning reforms to encourage town centre development ahead of out-of-town development
  • encouraging “a contract of care between landlords and their commercial tenants” by promoting the lease code and developing and adapting lease structures in order to move away from upward only rent reviews

Whilst many will welcome her ideas, we fear that others will feel like they’ve been there before. In our view though, we believe that any focus on a fast declining high street is a good thing and hopefully will be a trigger for action and improvement. Let’s leave cynicism behind and look to the future!

Posted by Sarah Parkinson, who specialises in property development and retail; heads up commercial property development practice, dealing with complex projects and commercial property transactions, including options and development agreements.

Sarah Parkinson

Sarah Parkinson
0115 976 6575
sparkinson@brownejacobson.com

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Yet more administrations on the high street

Friday, December 9th, 2011

Experts are predicting that there could be a record number of retail insolvencies this Christmas given the difficult trading conditions. The latest retailer to succumb is Barratts.

Without doubt, there needs to be some give and take. Landlords may want to offer extra concessions to try and keep their retail tenants in business, especially if the premises are likely to be left vacant as landlords may become liable for ongoing costs and, in particular, business rates (this issue being mentioned in previous opinions).

Effective communication is going to be the key to ensure that the high street gets through this difficult time and the retail tenants needs to be honest with landlords if they want to strike a deal in order to survive.

Kirsty Black

Kirsty Black
0121 237 3958
kblack@brownejacobson.com

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Unprecedented IP envoy appointed to protect UK interests in China

Friday, December 9th, 2011

Following our recent blog on UK businesses’ anger at China’s apparent ‘flouting’ of Intellectual Property (IP) rights, the government’s appointment of the UK’s first ever IP Attaché has been announced.

Tom Duke will be based at the British Embassy in Beijing and will be responsible for providing UK companies trading in China with support and advice about the enforcement of IP rights.

In making the announcement, Baroness Wilcox (UK Minister for IP) commented on the opportunity that the Chinese market represents for UK businesses, stating that trade between the two nations was last year worth an estimated £42 million; she noted ‘we need an efficient global intellectual property system where businesses have the confidence to trade in growing markets’.

This appointment will be welcome news to UK companies such as Dyson who, we reported this week, are put off from dealing in China despite its rapid growth, due to the apparent lack of monitoring of domestic infringers of UK IP rights.

Laura Mackenzie

Laura Mackenzie
0121 237 3959
lmackenzie@brownejacobson.com

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Retailers box clever

Thursday, December 8th, 2011

Boxpark in Shoreditch opened this weekend as the world’s first pop-up mall! The mall consists of over 60 shipping containers and is located on a site which is to be redeveloped in five years time.

Pop-up shops are obviously now a common sight during the busy christmas shopping season as retailers take the opportunity to open small units, often for terms of around three months or less.

Attractive rents are available to tenants due to the number of empty units and new technology has made the set-up of temporary till systems easier. Pop-up shops can also be an appealing proposition for landlords too because a fresh period of business rates relief can become available after the temporary letting ends.

In our view, pop-up shops may also encourage longer-term lettings if they generate footfall and add to a vibrant shopping experience in what would otherwise be a quieter corner of a shopping centre or high street. Let’s face it – every little helps in this market!

Mark Hymers

Mark Hymers
0115 976 6081
mhymers@brownejacobson.com

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Dyson – China’s flouting of IP rights risks their expulsion from the WTO

Monday, December 5th, 2011

Sir James Dyson has warned that China’s reputation risks being tarnished in the eyes of foreign investors due to their approach to IP rights.

In advance of this week’s Intellectual Property Office (IPO) symposium, which will be attended by trade representatives from China and the UK (including the UK Minister for IP- Baroness Wilcox), Dyson warned that China faces expulsion from the World Trade Organisation (WTO), the body that enforces global trade rules.

Dyson, a member of the prime minister’s business advisory group, suggests that China is creating an unlevel international playing field which prevents foreign companies enforcing their rights against Chinese infringers by maintaining a patent application process in which Chinese applications are passed in less than a year, compared to five years for foreign businesses.

China’s approach to IP right enforcement is likely to be of increasing interest to UK companies eager to protect their products, should the emerging market continue to pursue rapid economic growth without attempting to monitor domestic infringers.

Laura Mackenzie

Laura Mackenzie
0121 237 3959
lmackenzie@brownejacobson.com

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Opportunities for street trading and advertising during the Olympics

Thursday, December 1st, 2011

This week, the application process opened for permits to advertise, or trade in the street, in the vicinity of the London Olympics. The application process is open until 29 February 2012.

Specific Regulations, which prohibit unlicensed advertising or street trading, have now been finalised. The law is wide reaching and can catch, for instance, persons given branded clothing to wear, and pre-existing advertising in the defined areas. The law is also strict – officers have extensive powers to enforce it, and directors may find themselves personally liable for their company’s actions.

It is fair to say that the wide scope of the laws in place during the London Olympics may catch some businesses by surprise. It is therefore important to plan your marketing and trading activities early, so you can still seek advice and/or acquire permits.

Further information can also be viewed at Olympics – law and practice.

Posted by Oliver Sweeney, who specialises in regulatory matters; including compliance, representation e.g. company prosecutions and public inquiries; transport issues; commercial litigation, including reputation management, contractual litigation and injunctions.

Oliver Sweeney

Oliver Sweeney
0115 976 6247
osweeney@brownejacobson.com

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Employment law shake up

Wednesday, November 23rd, 2011

After much debate the Government have today announced proposals and further consultations affecting many areas of employment law. The key areas are:

  • Unfair dismissal qualifying period will increase to two years.
  • It will be compulsory for all claims to be lodged with ACAS prior to the Tribunal so that a conciliated resolution can be attempted.
  • Employment judges will have discretion to impose financial penalties on employers who breach employee’s rights.

There will also be a fundamental review of the employment tribunal rules of procedure led by the President of the Employment Appeal Tribunal.

In his speech announcing these plans, Vince Cable was clear that the reforms were intended to stop employment law being a barrier to employers growing their business. Tribunals should be a last resort for resolving workplace problems. Whether the proposals will have the desired effect remains to be seen.

Posted by Heather Bragg, who specialises in contentious and non-contentious employment matters including; contractual issues, unfair dismissal, redundancy and all areas of discrimination.

Heather Bragg

Heather Bragg
0115 976 6553
hbragg@brownejacobson.com

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Vax clean up

Wednesday, November 9th, 2011

Dyson has lost its appeal against the High Court’s decision that Vax’s Mach Zen vacuum cleaner does not infringe Dyson’s registered design for its DC02 vacuum cleaner.

The High Court had dismissed Dyson’s infringement claim on the basis that the Mach Zen produced a different overall impression on the informed user. Dyson appealed the decision but the Court of Appeal dismissed the appeal emphasising that the key legal issues was whether the Mach Zen did or did not produce on the informed user a different overall impression and, in this case, the Mach Zen did indeed produce a different overall impression with the court noting that there were in fact ‘substantial differences’.

This case is a reminder that even if you have broad registered design protection, the use by a third party of a similar design will not amount to infringement if that design produces a different overall impression on the informed user (a knowledgeable user of the product).

Posted by Sara McNeill, who specialises in non-contentious intellectual property matters, including licensing, franchise, collaboration and development arrangements and IP audits and strategy; experienced in drafting and advising on commercial agreements.

Sara McNeill

Sara McNeill
0121 237 3930
smcneill@brownejacobson.com

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Government issues labelling guidance to tackle growing food waste mountain

Thursday, September 15th, 2011

The Government has issued new guidance for the food industry on the use of food label dates amid growing concerns at the amount of food that is wasted each year by UK households.

According to the Local Government Association UK consumers threw away £14bn worth of food in 2010.

The guidance places greater emphasis on ‘use by’ or ‘best before’ dates and discourages the use of “sell by” and “display until” labels which are primarily used for stock control purposes.

The guidance reflects draft EU food regulations which provide only for mandatory use-by dates and omits the requirement for a best before date to be displayed. UK food labelling laws could be much simpler. This guidance is long overdue and over time it will be reflected in UK law. Any measure that reduces red tape for manufacturers and retailers will be welcomed by the industry but companies will have to continue to ensure customers are provided with any relevant details to ensure that the food they consume is safe.

Posted by Nina Best, who specialises in regulatory matters; entertainment licensing; advertising and marketing law; advice and representation on infringement of Food Safety Manufacturing Product Regulations.

Nina Best

Nina Best
0115 976 6529
nbest@brownejacobson.com

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First cull of “crackers” regulations

Friday, July 29th, 2011

Yesterday the Business Secretary Vince Cable announced proposals in relation to the first results from the Red Tape Challenge. The Government plans to scrap or simplify around 160 out of the 257 regulations reviewed in relation to retail firms.

The proposals include:

  • removing the requirement of alcohol licences to sell chocolate liqueurs
  • reducing the age limit to buy Christmas crackers from 16 to 12
  • removing rules relating to the safety of pencils, prams and hood cords
  • removing various pieces of antiquated legislation
  • removing various specific burdens identified by businesses such as the requirement on retailers to notify TV Licensing about TV sales

The Governments efforts to reduce the regulatory burden should be applauded. However a lot of the changes announced are relatively minor and will have little tangible impact on many firms. This is not an invitation to businesses to be any less vigilant in their regulatory compliance.

Posted by Fiona Carter, who specialises in commercial regulation, compliance advice and investigations; is head of Browne Jacobson’s advertising and marketing team and food and drink group.

Fiona Carter

Fiona Carter
0115 976 6224
fcarter@brownejacobson.com

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The shoplifter on your payroll

Tuesday, October 19th, 2010

A survey by the Centre for Retail Research has found that in the 12 months to the end of June 2010, shoplifting cost UK retailers £4.4bn, a third of which is attributable to staff.

The proportion of staff theft is nothing new, but the survey acts as a reminder that employees are uniquely placed to spot loopholes in procedures and facilitate fraudulent transactions. One way that every employer (not just retailers) can protect themselves against employee dishonesty is to have an effective whistle-blowing policy. Blowing the whistle on a colleague takes courage, but can be more easily facilitated if staff know who suspicious activity should be reported to, and feel protected from retribution.

Effective whistle-blowing arrangements will also help protect employers against claims under the Public Interest Disclosure Act which, among other things, provides that employees must not be subjected to detriment for disclosing information which tends to show that a criminal offence has occurred, or is likely to occur.

Posted by Tom McLaughlin, who specialises in contentious and non-contentious employment matters including; contractual issues, unfair dismissal, redundancy and all areas of discrimination.

Tom McLaughlin

Tom McLaughlin
0207 337 1033
tmclaughlin@brownejacobson.com

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Getting your refund policy right

Tuesday, July 13th, 2010

The BBC has discovered that a number of high profile retail companies may be operating refund policies which are in breach of the Distance Selling Regulations. Online retailers are required to offer a refund of delivery charges for goods bought online, as well as the price of the goods themselves, when the goods are rejected and returned within 7 days of delivery. However the BBC found that a number of online retailers were not offering refunds of the delivery charges.

The Distance Selling Regulations were introduced in 2000, following EU legislation on consumer rights. They are designed to protect the rights of consumers who buy goods online, and therefore do not have a chance to inspect the goods in the shop before buying them.

Although the sums involved are individually small, this could mean an administrative headache for businesses forced to address numerous claims for a refund. It could also result in Trading Standards getting involved. Under the Enterprise Act, they have wide-ranging powers to stop breaches of consumer law, no matter how small.

Consumers are not always aware of their rights – however it is important that businesses do keep up to date with consumer rights, as stories like this can result in bad publicity, and may even prompt legal action.

Fiona Carter

Posted by Fiona Carter
0115 976 6224
fcarter@brownejacobson.com

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