Fairer parcel deliveries: action plan

Introduction

Despite our lack of powers, the Scottish Government has been calling for a solution to unfair delivery practices for a number of years. This is because charging excessive amounts for delivery that do not match actual cost – or refusing to deliver at all – discriminates against those living in rural and remote areas. This can prevent some people in parts of Scotland taking advantage of the digital economy the way that people living in cities and urban areas do. But such practices can also increase hardship and distress for vulnerable people, for example, those who rely on timely delivery of medical supplies. And they can be a barrier to small businesses in rural and remote areas, which in turn can stifle the economic potential of those locations.

That is why this Government is launching Fair Deliveries For All: An Action Plan, which demonstrates our commitment to tackling the issue. We recognise that the vast majority of businesses want to treat their consumers well, and the actions in this plan will support those companies. They will also make it easier for consumers to avoid traders that seek to profit through unfair means.

What will this Action Plan achieve

This Action Plan has four main aims:

• To establish the Scottish Government as a leader in delivering a consumer-centred approach to delivery charges.
• To present a single vision to unite Scottish Government and partners around clear outcomes and actions to benefit consumers.
• To re-build trust in online retailers and parcel delivery companies by designing interventions to highlight good practice and limit bad practice.
• To develop innovative and creative approaches to solving issues around parcel deliveries in rural and remote areas of Scotland.

Eight actions have been developed to deliver these aims and will continue the momentum of tackling unjust delivery costs faced by many in Scotland. These cover a range of areas, from empowering consumers to addressing some of the root causes of unfair practices. Taken together, they represent powerful potential to bring real change.

In developing these actions, we are mindful that there are real and genuine challenges in delivering parcels to remote and rural areas. Difficulties accessing destinations, long distances for drivers to travel, and overall lower delivery volumes are all legitimate considerations for retailers and delivery companies. There is no simple solution that will change these realities.

At the same time, we must also recognise that some charges do not accurately reflect the true costs of delivery – whether that is because rogue traders unfairly raise prices, or because current postcode mapping does not always accurately reflect location information.

The actions in this plan therefore fall into two categories:

• actions to reduce unjustified delivery discrepancies for people across Scotland; and
• actions to reduce justified discrepancies by trying to tackle some of the underlying challenges inherent in rural and remote delivery.

Progress so far

The Scottish Government and key partners have already undertaken a number of significant actions to address unfair delivery charges. These include:

• The then Minister for Business, Energy, Enterprise and Tourism, Fergus Ewing MSP, chaired Parcel Delivery Summits in Inverness in November 2012 and Edinburgh in February 2013 which involved a range of stakeholders and focused on co-operation across industry, government and regulators.
• Following these summits, Fergus Ewing launched the Statement of Principles for parcel deliveries in November 2013, which the Scottish Government helped to develop along with stakeholders from retail, consumer and courier sectors. It sets out best practice principles for retailers to provide delivery services that meet the needs of their customers.
• The UK Government announced in July 2014 that the Statement of Principles had been adopted across the UK, demonstrating the difference we can make by pushing for change.
• A parcel deliveries meeting was organised by the Scottish Government in August 2017. Key stakeholders discussed how all concerned could work together to find sustainable solutions to excessive delivery charges.
• The Scottish Parliament held a Members’ Business Debate in December 2017. The then Minister for Business, Innovation and Energy, Paul Wheelhouse, responded on behalf of the Scottish Government and committed to help find solutions including hosting a roundtable.
• Also in December 2017, Paul Wheelhouse wrote to the UK Consumer Minister asking for UK Government action.
• A Westminster Hall Debate was secured in December 2017 to discuss unfair delivery charges in Scotland.
• The UK Government’s Scottish Affairs Committee held a one–off evidence gathering session on parcel delivery charges in February 2018.
• The Advertising Standards Authority (ASA) published a new Enforcement Notice on Advertised Delivery Restrictions and Surcharges for online and distance sellers in April 2018. Online retailers must not make incorrect absolute “UK delivery” claims and must make sure any qualifications about delivery do not contradict the main claim.
• Citizens Advice Scotland hosted a roundtable with the main parcel delivery services in April 2018. Discussions from this meeting centred around pick up drop off points along with fair and transparent parcel delivery costs for consumers.
• A Parcel Delivery Roundtable^[2] was hosted by Paul Wheelhouse in June 2018 to encourage collaborative working to find sustainable solutions to parcel delivery concerns for consumers, parcel delivery companies, and online retailers. One of the actions from this roundtable was the publishing of this Action Plan.
• The Consumer Protection Partnership^[3] (CPP) continues its work in reviewing existing evidence on parcel delivery surcharging by launching a ‘one-stop shop’ website - www.deliverylaw.uk – in June 2018. This website, hosted by Highland Council Trading Standards, brings together, in one place, support for consumers, businesses and specialists seeking advice and support about misleading delivery charge advertising. CPP also reviewed consumer advice on parcel deliveries in June 2018.
• At Prime Minister’s Questions in October 2018 an oral question was raised regarding unfair delivery charges in the Highlands and Islands.