Retail & Consumer Bulletin: Covid-19 Updates

In this week's Retail & Consumer bulletin, we look at the litigation trends emerging as a result of Covid-19, and the new rules relating to face coverings.

Emerging tech related litigation trends

A rise in tech related issues given the marked increase in importance and reliance of technology to businesses' operations and sales:

• Emerging issues in transformation / technology projects
  • COVID-19 has led clients to pause, reshape or accelerate projects depending on strategic need and budgetary factors
  • Advice required on:
    • variation, suspension or termination of such projects
    • obligations to pay milestone payments
    • ownership and usage rights in software and/or databases they have helped to develop
    • Steps to help protect their position (e.g. responsibility for additional costs, scope requirements or delay)
• Responding to IT supplier's licensing and software audits:
  • COVID-19 may have significantly changed a client's use, volume and locations (flexi/remote working) which means that the number of licences, or their terms, may no longer be adequate.  
  • Relevant to all R&C sector clients who use/deploy software
  • Value of software licences (and alleged deficits) can often run into £millions
• Data related issues
  • COVID19 has increased the risk profile due to: expansion of remote working; new technologies introduced at speed; increased demand on existing technologies; and reported increase in third party malicious attacks
  • Reviewing data management and data breach response policies to ensure still fit for purpose given evolving work protocols
  • Responding to Data breaches which are on the rise both as a result of an increase in malicious third party attacks and a higher risk of inadvertent errors by internal

UPDATE: FACE COVERINGS REQUIRED IN SHOPS FROM 24 JULY

• Overview of the new rules 
  • From 24 July, wearing a face covering in shops and supermarkets in England will be mandatory
  • The rules will be enforceable by the police
  • Those who do not comply facing fines of up to £100. 
  • It is already compulsory to wear a face covering on public transport in England.
  • Exceptions will exist for children under 11 and those with certain disabilities. 
  • In addition, the rules will not apply to retail staff at work.
  • Aside from the intended health benefit the hope is that it will give people confidence to visit retail sites again.
• Enforcement
  • Retail workers will be encouraged to prompt customers to comply, but will not be expected to enforce the rules.
  • Concerns have been raised about the practicalities of enforcing the new regulations.
    • How do you deal with customers refusing to wear face coverings?
    • Have you set an agreed policy and put guidance in place for staff members dealing with those who refuse?
    • How do you deal with concerns of increased violence towards staff?
    • Do you make face coverings available for customers who forget to bring one?
    • If the supermarket isn't responsible for enforcing customers to wear a face covering, how will the £100 fines be issued in practice? 
  • Increased customer restrictions are likely to cause tensions and this should be reflected in updated risk assessments
  • It will be necessary to consider other control measures in place to mitigate against the risk of violence and to ensure staff safety, e.g. increased security