The Metaverse, green claims and data privacy – what critical issues lie ahead for retailers and consumer brands in Autumn 2022?

International law firm RPC launches the latest edition of Retail Compass

With the metaverse, green claims, data privacy and plastic packaging high on the agenda, international law firm RPC is helping businesses maximise opportunities and navigate regulatory changes ahead in the latest edition of Retail Compass.

The publication coincides with RPC's inaugural Retail Compass Live! – a one-day event bringing key topics to life with guest speakers and panel discussions - on Wednesday, 9 November. 

Key highlights from the latest edition of Retail Compass include:

Entering the Metaverse – The metaverse provides great potential for retailers looking to build their omnichannel offering and embrace virtual engagement as a key part of a consumer's overall experience. 

In this new (virtual) world, what should they be looking out for? 

RPC has compiled a 10 top tips on everything from how to protect and register your IP, to looking after customer data, negotiating contracts and keeping on top of the latest regulations.

Digital transformation – Innovative technologies present both risk and reward. On the one hand, these technologies can help retailers and consumer brands gain valuable information about their customer base, such as proximity marketing using Bluetooth, personalised reward schemes and footfall analytics.  

On the other hand, technology capturing large amounts of consumer data could put retail businesses at risk of breaching data privacy laws. Recently, retailers and consumer brands have been warned about collecting ‘faceprints’ of customers as a deterrent to theft. 

With breaches of GDPR incurring potential fines of €20m, retailers will need to ensure any data they collect is handled in compliance with data privacy regulations. 

Greenwashing – What are green claims and how can businesses mitigate the risk of falling foul of regulators? 

RPC offers retailers and consumer brands a list of key points to consider to ensure they comply with the Competition and Market Authority (CMA)'s Green Code.

The UK Government has proposed changes that would give the CMA wide-reaching powers to hit businesses with fines of up to 10% of their annual global turnover if they make misleading or untrue claims about their environmental credentials. RPC has been helping clients navigate the evolving Regulatory landscape.

Plastic packaging – From 1 January 2023, extended producer responsibility (EPR) over plastic packaging will be introduced.
However, EPR is not confined to packaging manufacturers as might be the initial impression.
Retailers and brand owners are also within the scope of EPR regulations as "packaging activities" includes:

• Packaging own-brand products to sell to UK consumers;
• Using a third party to package and sell own-brand goods to UK consumers;
•  Importing own-brand and third-party packaged products into the UK to sell to consumers, unless doing so on behalf of a third party (such as a supermarket)

With data collection requirements under this new change fast approaching, what steps should retailers that meet the criteria take to prepare for the data reporting aspect of EPR? 

Karen Hendy, Partner and Co-head of Retail and Consumer at RPC says: "Retailers and consumer brands are facing a multitude of regulatory changes and increased scrutiny as they head into 2023, from issues involving green claims to plastic packaging and data protection. 

"Taking steps now is the best way businesses can ensure they are ready and compliant when these changes come into force." 

Jeremy Drew, Partner and Co-Head of Retail and Consumer says: "Retail is being transformed at a rapid pace as technology pushes the sector deeper into the digital revolution, providing retailers and consumer brands with an immense wealth of information that will drive their businesses forward. 

"But as the guardians of such data there is a huge responsibility. Avoiding regulatory scrutiny will come down to how robustly businesses can protect their customer data."

Partner Ciara Cullen, Head of Food and Drink, adds: “Sweeping new powers in the pipeline for the CMA could see retailers and consumer brands hit with GDPR-level fines for making unsubstantiated claims about their environmental credentials. With so much at stake, (not least from a reputational perspective) it would be prudent for retail and consumer brands to review existing claims to make sure they are compliant.”