RETAIL & CONSUMER HORIZON SCANNER 2025

In 2025, retailers navigated a complex regulatory environment with significant updates in data protection, cybersecurity, artificial intelligence, digital payments, and online safety. Key developments included:

• Amendments to UK data protection legislation.
• The introduction of the EU AI Act, which established a risk-based approach to AI regulation.
• New cybersecurity laws that set additional requirements for digital products.
• Regulation of Buy Now Pay Later products, introducing enhanced consumer protections.
• Implementation of new codes of practice under the Online Safety legislation in the UK.

2025 was another busy year for employment law, which had a significant impact on retail and consumer businesses as both the EU and UK progressed with worker protection reforms. Notable changes included:

• New employment rights, including provisions from the Employment Rights Bill containing the UK government's flagship reforms.
• Enhanced worker protections, which led to increased tribunal claims and greater trade union involvement in industrial relations.
• Developments in pensions law that affected defined benefit scheme liabilities.

Supply chain resilience was a key focus in 2025. Businesses increasingly utilised AI and blockchain technology to plan supply chain strategies and improve resiliency. The near-shoring trend continued, driving increased demand for logistics and warehousing. Key legislative measures included:

• EU agri-food legislative measures aimed at strengthening farmers' positions in the supply chain.
• Reforms to the Modern Slavery Act, with a focus on due diligence in supply chains.
• The European Accessibility Act, which mandated accessibility requirements for certain products and services.

Retailers needed to be aware of key developments in legislation and regulation affecting commercial property and the broader built environment in England and Wales, including:

• The MEES Regulations, which impacted commercial properties.
• Reforms to the Energy Performance of Buildings regime, with consultations closing in February 2025.
• New regulations allowing local authorities to hold compulsory high street rental auctions for empty properties.

2025 saw significant developments in the ESG landscape. Highlights included:

• The Corporate Sustainability Reporting Directive (CSRD), which expanded the scope of sustainability reporting requirements for businesses.
• The General Product Safety Regulation (GPSR), introducing new safety requirements for consumer products in the EU.
• The Green Claims Directive, which set stricter standards for making environmental claims and enhanced consumer rights in the green transition.
• Proposed reforms to the audit and corporate governance regime, alongside the ongoing implementation of the Economic Crime and Corporate Transparency Act 2023, which included wide-ranging reforms for corporate entities.

Consumer protection and enforcement law continued to be strengthened in 2025, with significant developments in product liability and health and safety. Key highlights included:

• The EU Product Safety Regulation, which introduced new safety requirements for consumer products.
• The revised EU Product Liability Directive, which broadened the scope of cases for which compensation could be claimed.
• The UK Health & Safety Bill, introducing an obligation for employers to actively prevent violence and harassment in the workplace.
• The reform of the UK Furniture and Furnishings Regulations, which aimed to clarify and update the responsibilities of manufacturers, importers, and suppliers.