Internet sellers depend on effective packaging to ensure that
their goods reach consumers in usable condition, but they must
ensure that a certain percentage of that packaging is recycled.
Most use recycling schemes, which do not have to ensure that a
particular box is recycled, but which arrange with recycling plants
to ensure that an equivalent amount of the same material is
recycled.
But falling commodity prices are driving the cost of this
activity up, according to Adrian Hawkes, the director of policy for
the UK's biggest recycling scheme operator, Valpak.
"If there is a high market price for the material then the price
of the evidence [of its recycling, which retailers buy] is lower,
and the converse is the case," he told technology law podcast
OUT-LAW Radio. "For the first half of
this year world commodity prices were very high and therefore [the
price of] recycled material products was also high. So the extra
financing that was required from producers was actually quite
modest."
"Over the last few weeks that has completely flipped around in
that global commodity prices have plummeted down to very low levels
which means that in order to continue to recycle, the subsidy, if
you like, has to increase to compensate and that is exactly what
has happened," he said.
Hawkes estimated that the cost to UK industry of recycling
packaging could increase by 50% this year because of this hike,
from £100 million to £150 million. He also said that the rise would
make it less likely that the UK reach its packaging recycling
target this year of 60%.
CapGemini has said that UK consumers will spend more online this
Christmas than ever before, despite predicting a fall in overall
retail sales. It said consumers would spend £13.16 billion in the
last three months of this year.
Retailers do have a responsibility to recycle packaging under UK
laws derived from EU Directives. Though the packaging is not the
primary product they sell, most are considered to be producers or
importers of packaging, said Kirsty MacArthur, an environmental law
specialist with Pinsent Masons, the law firm behind
OUT-LAW.COM.
"The Producer Responsibility Obligations are designed to
encourage minimisation of packaging and incentivise increased
recycling. If you are a company that is bringing in packaging –
whether you are supplying raw packaging or importing and selling
packaging in the UK there are a set of regulations which will apply
if your turnover exceeds £2 million and if you are handling over 50
tons of packaging," she said.
"A company such as Amazon, if you are importing packaging or
selling goods with packaging around them in the UK the likelihood
is that the regulations will apply to you," she said.
Amazon recently announced a frustration-free packaging programme
which had two aims – to cut down on the amount of packaging and to
increase its usability.
Access to goods can be hampered by packaging which is difficult
to open. This is particularly an issue for older people who are
more likely to have problems with dexterity, said David Sinclair,
head of policy at Help the Aged.
"We know that actually packaging is a big issue and that people
tell us all the time that actually they have not bought the same
product because of it," he said. "There are difficulties like just
literally getting into some of the packets, the opening up,
particularly I think some of the sort of vacuum-packed plastic
packs. The big issue has been inclusive design, how we design
products and services to meet the needs of an aging society. I
really thing that industry is beginning to recognise that we need
to do more."
