Online platforms should commit to paying small businesses within a maximum of
thirty days in line with the Prompt Payment Code, according to the Federation of
Small Businesses (FSB).
The FSB has set out a range of proposals to protect small business owners who use
online sales platforms to ensure that small firms can make the most of the
opportunities of trading online.
The business group wants platforms to invest much more in systems to resolve
issues for small businesses, including the provision of dedicated complaint and
dispute handling resources where these do not already exist.
It also says the UK government should consider legislation to make it an offence
for an individual to post a fake and malicious online review.
Finally, the FSB wants the Competition and Markets Authority (CMA) to investigate
the charging structures of retail platforms and the charging levels of
accommodation and food delivery platforms to determine whether these are
indicative of monopolistic or oligopolistic behaviour.
Tina McKenzie, the FSB's Policy Chair, said:
'Small firms are calling out for more to be done on issues like protection of
their intellectual property, while platforms should commit to paying
businesses as promptly as possible – a figure that would be a rounding error
for a large e-commerce site could easily be the difference between survival
or closure for a small firm.
'Making the relationship between small firms and online platforms as
transparent and as stable as possible will ultimately benefit all
parties.'
Internet link: FSB website