EU Regulation proposes all e-tailers must have a bricks and mortar shop

KidsBeeHappy

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Oct 9, 2007
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I was just writing me blog (shameless plug!), and the EU currently have a draft regulation on their table, put forward by the luxury good brand owners, to require all internet retailers to have a brick and mortar shop.

The proposal is to eliminate "free riders" who take advantage of marketing and advertising done by the brand at no cost to the e-tailer.

Personally, I see this as anti-competitive controlling, discriminative legislation, that takes retailing back 20 years.

Furthermore it is also unnecessary. Because the brand owners have the ultimate ability to rectify this themselves, they simply increase the cost price of their items to wholesalers and and to e-tailers to incorporate a "marketing fee". And they tighten up on their own internal procedures over authorised suppliers, and more importantly implement them better.

This regulation is lazy and a bit of disgrace really. Amazon and Ebay are lobbying strongly against it, on the basis that it completely and utterly shafts the small businesses at the expense of the brand owners.

Anyway, your thoughts?????
 
Probably another stupidity will result but the ideas behind could be interesting.

Firstly it makes commercial sites more accountable in that the legal jurisdiction of bricks and mortar is clear and enforceable. This would leave information sites unchanged but would reduce the incidence of "bad" traders.

Secondly it would spawn a new type of business as a "rent-a-counter" shop which would provide the required outlet.

Thirdly there could be a reverse requirement which would require all bricks and mortar shops to have an internet presence. This would actually make small retailers more viable and could end up strengthening the high street.

There are many more possibilities but this will do for now.
 
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Optegris

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    So technically it would also mean that all hosting companies would also have to be on the high street along with all the eBook sellers and those with other non-physical products.

    There is more chance of me giving birth to twin headed alligators whilst singing zippidee doo dah in a Welsh accent than this ever getting enforced. :)
     
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    fisicx

    Moderator
    Sep 12, 2006
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    ... giving birth to twin headed alligators whilst singing zippidee doo dah in a Welsh accent...
    I'd pay money to see that!
     
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    KateCB

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    May 11, 2006
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    Seriously, it would not only take retailing back 20 years, but would put so many e-commerce retailers out of business - as you say, why would an e-book or webhost need a physical presence on the high street - and just how much commercial land/buildings would be needed to house everybody? They just don't think!

    I am not worried as we have a warehouse/offices, but I don't think it will happen as it will stifle the small, business and the governments of every EU country are trying to help people set up on their own to reduce unemployment figures - it would be counter-productive!
     
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