Economic recovery, modern slavery, Amazon UK store, Love Island: your commercial news round-up

Have you caught up with the news this week? Remember that, although reading the news regularly will naturally increase your awareness of what’s happening in the world, sitting down to properly analyse one particular story is great practice for improving your commercial awareness, as well as your knowledge on how the law and business interact. For now, read LCN’s commercial news round-up below.

• Among other covid-19-related announcements this week, Chancellor Rishi Sunak has confirmed that the government’s furlough scheme will be extended until the end of September, with access to grants also being widened for self-employed workers. Meanwhile, the chancellor has also revealed plans to increase corporation taxes from 19% to 25% for all UK companies with profits of more than £250,000 starting in 2023. The rise is expected to generate an additional £45 billion in corporation tax, which will contribute toward the UK’s economic recovery. The full 25% increase will affect only 10% of UK firms.

• Swedish car firm Volvo has confirmed that it will sell only electric vehicles by 2030, with the car manufacturer committed to phasing out its models with internal combustion engines, including hybrids. Henrik Green, Volvo’s chief technology officer, said: "There is no long-term future for cars with an internal combustion engine." The firm previously revealed that 50% of its sales would be fully electric and the rest hybrid by 2025.

• Online fast fashion retailer Boohoo could be faced with a US import ban following allegations relating to labour practices in Leicester factories in the firm’s supply chain. Managing director of Liberty Shared, a campaign group against modern-day slavery, Duncan Jepson has collated evidence regarding Boohoo’s labour practices, leading US Customs and Border Protection to launch an investigation into the allegations. Jepson said: “The evidence of Boohoo and forced labour is quite compelling. I think it will be a wake-up call for British institutions about how they're handling modern slavery enforced labour, particularly in a community like Leicester East.” Jepson urges the online retailer to review its practices and “get to grips with governance of their supply chain”.

• Amazon’s first physical, “checkout-free” UK grocery store opened in Ealing, London today where customers scan their smartphone before entering the store and are automatically charged when they leave. On top of its own-brand items, the supermarket will stock third-party products and Amazon customers can also collect and return items bought online. While other supermarkets, including Tesco and Sainsburys have previously implemented self-scanning devices, Amazon’s checkout-free approach has the potential to offer a more “frictionless” experience. Fears relating to customer privacy have been raised.

• Former Love Island contestant Molly-Mae Hague has received a warning from the Advertising Standards Authority (ASA) following an £8,000 giveaway launched in September, which the watchdog found to have broken official rules. The ASA said: "We told Molly-Mae Hague to ensure their future promotions were administered fairly and that prizes were awarded to genuine winners in accordance with the laws of chance and by an independent person or under the supervision of an independent person."

• Deloitte will pay the Malaysian government $80 million following corruption claims relating to the firm’s audit of state fund 1 Malaysia Development Berhad (1MDB). The Malaysian Finance Ministry said: “The successful out-of-court settlement with Deloitte will expedite the payment of monies to fulfil 1MDB and SRC’s outstanding obligations, which would otherwise be delayed by potentially protracted and costly court battle.”

Be sure to check the News every Thursday for this weekly commercial news round-up. Follow @LawCareersNetUK on Twitter and like us on Facebook for instant business news updates.