What type of retail issues do you expect to face this year? Environmental and sustainability challenges? Workers unionizing? Privacy and cybersecurity concerns? All of these issues and more are discussed in Hunton Andrews Kurth’s 2022 Retail Industry Year in Review, a report that provides a comprehensive overview of recent developments impacting retailers, as well as a look ahead at what to expect this year.

Hunton Andrews Kurth, one of Women in Retail’s partners, is a global law firm with industry experience in energy, financial services, real estate and retail/consumer products across the spectrum of transactional, regulatory and litigation services.

Here is a look at five issues to keep on your radar in 2023:

  1.  PFAS regulations are ramping up. Laws targeting per- and polyfluoroalkyl substances (PFAS) in products have taken effect and will continue to take effect in many states. To manage liability, retailers must be aware of this trend and understand the expanding regulatory requirements and potential liability for selling products containing PFAS in states with these restrictions, the report said.
  2. Digital marketplaces are facing new risks. As digital commerce’s share of the retail economy continues to grow and supply chains become more globalized, every online retailer — big and small — needs to be aware of the risks posed by a patchwork regime of digital marketplace liability, according to the report. Retailers should also be cognizant of the product safety policies and insurance requirements of suppliers and third-party sellers and should carefully review the indemnity and risk-shifting provisions of all supply contracts.
  3. Leadership is being held accountable for cybersecurity and privacy risks. Recent legal actions and regulatory developments suggest a growing emphasis on accountability at the senior leadership level for companies’ cybersecurity and privacy practices, the report said. Retailers should therefore ensure that those in leadership positions have the expertise necessary to maintain cybersecurity and privacy programs, and that governance mechanisms are in place to ensure cybersecurity and privacy issues are adequately addressed when they arise.
  4. ESG disclosure being tracked more closely. According to the report, the global mandatory reporting regime for climate metrics and other ESG (environmental, social, governance) topics began to take shape in 2022, and two key developments drove this progression. First, the Securities and Exchange Commission proposed mandatory climate disclosures for public companies in the U.S. Second, the European Union finalized a mandatory climate and ESG reporting regime for businesses that conduct significant business in Europe. These rules represent broad changes in ESG disclosures, and retailers should be sure to read through these new disclosure rules and follow them closely.
  5.  Workers will continue unionizing. With inflation and employee satisfaction showing no signs of returning to pre-pandemic levels, retailers should expect labor organizing to remain at the forefront of workers’ minds and brace for this unionizing trend to continue through 2023.

For more insights on these and other issues, click here to access Hunton Andrews Kurth’s 2022 Retail Industry Year in Review.