ACM: clothing sector can collaborate on a study into the effects of return costs
Thuiswinkel.org, a Dutch trade association, is allowed to study what the effects are of return costs on consumer behavior. The Netherlands Authority for Consumers and Markets (ACM) has assessed that this initiative is compatible with the competition rules. The study will result in more knowledge about the effects of return costs on consumer choices. This can help in reducing the number of product returns, and it reduces the clothing sector’s impact on the environment. ACM offers much room for collaborations between businesses that contribute to the sustainability transition, such as this initiative of Thuiswinkel.org.
Reducing product returns
Product returns lead to, among other effects, additional transport, storage, and packaging. Moreover, online clothing stores are unable to resell a small share of the returned products. As the trade association, Thuiswinkel.org wishes to help in reducing the number of product returns in order to make the clothing sector more sustainable.
Many online clothing stores currently have a policy of free returns. Thuiswinkel.org will study what happens if stores introduce return costs. Thuiswinkel.org will therefore monitor clothing stores that will introduce return costs. The stores decide themselves what the amount will be, as well as how these return costs will be charged. Thuiswinkel.org agrees with the companies that they will not adjust their return policy for a certain period. Once sufficient information has been gathered, the participating stores are allowed to adjust their return policies again. With the information that Thuiswinkel.org will gather before and during the adjusted return policies, it will measure the effect of return costs on the number of product returns.
ACM’s informal assessment
ACM has assessed the initiative in accordance with its Policy Rule regarding ACM’s oversight over sustainability agreements, and does not see any objections. The arrangements do not go beyond what is necessary. In that context, ACM considers the following aspects of particular importance:
- Participation in the study is on a voluntary basis.
- Participants decide themselves the amount of the return costs.
- The study does not last longer than necessary to gather sufficient information.
- After the study, participants can adjust their own policies again.
- Competitors do not exchange any competition-sensitive information.
ACM and sustainability
ACM ensures that markets work well for all people and businesses, now and in the future. More-sustainable products and consumption are an important element of the transition to a sustainable society. ACM wishes to create the right conditions to promote the sustainability transition. ACM takes away obstacles, and offers opportunities where possible. This does not just apply to the conclusion of sustainability agreements between businesses. ACM also takes action against businesses if they put misleading sustainability claims on their products.
Collaboration test
If you wish to collaborate with another business and you wish to assess whether that is allowed under the competition rules, take ACM’s collaboration test (in Dutch). With the collaboration test, businesses can assess anonymously whether a collaboration is allowed according to the competition rules.
Are you unsure whether the collaboration is allowed, even after doing the collaboration check and after consulting with a legal advisor? If so, ACM can informally assess your sustainability agreement. ACM takes a quick and summary look, and you can start the collaboration with more reassurance. Do you want to know more? See here: Having your sustainability agreement assessed (in Dutch).
More information about collaborations and sustainability can be found here: Arrangements between businesses regarding sustainability (in Dutch).
See also
- Take ACM’s collaboration test (in Dutch)
- Having your sustainability agreement assessed (in Dutch)
- Arrangements between businesses regarding sustainability (in Dutch)