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Plastic Bag Charge Not Tallied with Quantity in Online Grocery Shopping Trial and Charge Criteria Unclear Add “No Bags” Option and Improve Transparency to Achieve Plastic Reduction Targets

  • 2023.08.15

The Government implemented the Enhanced Plastic Shopping Bag Charging Scheme (Enhanced Scheme) in late 2022, under which retailers were required to charge no less than $1 for each non-exempted plastic bag provided to customers (including online retail transactions), while fee exemption for plastic bags for chilled or frozen food was also removed. Since the implementation of the Enhanced Scheme over 6 months ago, the Consumer Council has received much feedback from consumers that some traders and online shopping platforms had overcharged for and handed out too many plastic bags. In view of this, Council staff posed as ordinary consumers to conduct 69 trial orders to purchase different types of food products from 11 online stores/e-commerce platforms. It was found that over half of the online stores/e-commerce platforms charged plastic bag or packaging fees. However, some traders were unclear about the basis for such fees, including not listing the charging rate, scope and criteria of the charge, and how to decide the number of plastic bags provided, etc., and customers were not given the options of “no bags” or “number of bags” during the ordering process. Besides, discrepancies were found between the plastic bag charge and the actual number of bags provided by different online stores/e-commerce platforms, and such scenarios could be broadly categorised into 4 major issues, including the number of plastic bags provided exceeded or fell short of the bag charge; provision of plastic bags without charging; charging without providing any bags; and variations in number of bags and charge for orders of the same goods placed at different times. The Council urges traders and e-commerce platforms to simplify packaging and provide options for consumers in plastic bag usage. In addition, the Environmental Protection Department (EPD) should provide clearer guidelines for the services of online grocery shopping, including fresh/chilled/frozen meat to help achieve the city’s plastic reduction target.

Only About 30% Trials Had Accurate Plastic Bag or Packaging Charges

Between June and early July this year, Council staff posing as regular consumers made trial purchases of fresh, chilled, frozen or general food products from 11 online stores and e-commerce platforms (involving 12 traders) respectively, including the official e-stores of supermarket chains and food shops, as well as third-party delivery platforms in collaboration with supermarkets. The trial included purchases of 3 groups of food products, namely wet goods only (fresh, chilled or frozen food), dry goods only (canned food, cup noodles and crisps), and a combination of wet and dry goods, with both home delivery and in-store pick-up services.

Out of the 11 online stores/e-commerce platforms, 6 stated that plastic bag or packaging fees would be charged, and among them 3 listed out the fee amount or upper limit, while 1 third-party platform only listed out the plastic bag fee amount of only 1 of its partner supermarkets without relevant information on the other collaborating supermarket, and the remaining 2 did not list out the fees beforehand, only displaying the amount at checkout. Among the 69 online shopping trial orders, 37 (54%) charged a plastic bag fee or packaging fee ranging from $1 to $6 per order, with 1 to 8 plastic bags provided. Upon counting the total number of plastic bags provided in the trials based on the charge of $1 per bag and disregarding exemptions, the number of plastic bags provided in 10 out of the 37 trials tallied with the plastic bag fee/packaging fee charged. Considering that 3 online stores/e-commerce platforms charged under the name of “packaging fee”, indicating that the charge might have covered other packaging materials, if the 14 trial orders that came with packaging with other materials were excluded, in the remaining 23 trial orders, the fees charged in 6 trials tallied with the number of bags provided, whereas 7 trial orders provided fewer plastic bags than actually charged, and 10 provided more bags than the amount charged.

Issue 1: Number of Plastic Bags Exceeded or Fell Short of the Number of Plastic Bags Charged

In 10 trial orders, the number of plastic bags provided by the online stores/e-commerce platforms exceeded the actual plastic bag fee/packaging fee charged. Excluding 2 orders with exemptions under the “Enhanced Scheme” (loose fruits and vegetables without packaging), there were still 8 orders where the online stores/e-commerce platforms provided 2 to 7 plastic bags (including insulated bags), which were more than the $1.5 to $6 plastic bag fee or packaging fee charged. For example, a supermarket put 3 prepackaged wet goods in 3 separate flat-top plastic bags but only charged a total bag fee of $2; 1 takeaway platform used 2 bags for all goods but only charged a $1.5 plastic bag fee. Both cases were not in compliance with the requirement of the Enhanced Scheme to charge no less than $1 for each plastic bag.

On the contrary, some online stores/e-commerce platforms charged more than $1 per bag. For example, 4 orders through a takeaway platform with different quantities of supermarket goods were each charged $3 although only 1 plastic bag was used.

Issue 2: Provision of Plastic or Insulated Bags Without Charge

In 5 trial orders, despite none of the products being exempted under the Enhanced Scheme, some online stores/e-commerce platforms provided 1 to 3 plastic bags without charging any plastic bag fee or packaging fee. For instance, a supermarket provided 3 plastic bags free of charge in both of its 2 orders regardless of whether it was home delivery or in-store pick-up. According to the EPD, if multiple plastic bags were used in a trial order, it is necessary to first identify the source of the bags. If the goods were delivered by a logistics company, the plastic bags provided therein would be free of charge as it did not involve retail sale of goods; however, if multiple plastic bags were all provided by a retailer, the retailer would be required to charge customers a minimum of $1 for each plastic bag provided except for those exempted.

On the other hand, out of 9 trial orders, 6 did not charge a plastic bag fee nor a packaging fee, with 3 online stores/e-commerce platforms using 2 to 4 insulated bags respectively to carry wet goods, including broccoli and apples which could be stored at room temperature. As the fee exemption on plastic bags for chilled or frozen food products was removed under the Enhanced Scheme, insulated bags used to contain fully packed food products are no longer exempted from charges unless the quality of the goods deteriorates if not stored in insulated bags, in which case the bags can be regarded as forming part of the goods and are not subject to the plastic bag charge. If the bag is only used for holding and carrying purposes, it must be charged.

Issue 3: No Plastic Bag Despite Charge Imposed

Some online stores/e-commerce platforms charged a plastic bag fee or packaging fee without providing any bags, some of which used paper bags as a replacement or used cardboard boxes as containers. For example, 5 trial orders at the same e-commerce platform charged a maximum of $3 packaging fee but only provided 1 to 2 paper bags; 3 trial orders at the same online store charged $2 for the packaging fee for direct purchases but only used cardboard boxes as containers. According to the EPD, traders who charge customers but provide them with paper bags are not in breach of the Product Eco-responsibility Ordinance (PERO).

Issue 4: Varied Charges and Number of Plastic Bags for the Same Products

Even with the same type and quantity of goods, the trial orders were charged differently for plastic bag or packaging. For example, in 2 repeated trial orders of 9 identical items at the same supermarket, 3 plastic bags were provided each time, but a plastic bag fee of $2 was charged in the first order, whereas nothing was charged in the second. At another supermarket, for 2 repeated trial orders of 6 identical wet goods, on the first time a packaging fee of $6 was charged with 8 plastic bags provided, while on the second trial only a packaging fee of $3 was charged with 1 plastic bag provided, with some goods placed in paper bags and cardboard boxes instead.

Even with the same plastic bag charge, the number of bags provided may vary. For instance, in 5 trial orders at the same online store, although the same $2 plastic bag charge was levied, 2 to 6 plastic bags were provided respectively, among which in 2 repeated trial orders of 9 identical items, 1 order provided 6 plastic bags while the second provided 3 plastic bags only.

Upon surveying the information on plastic bag fees or related charges listed on the various online stores/e-commerce platforms, some only stated that “a small sum will be charged”, others stated that the charge would be “based on the weight and size of the goods”, while some did not even have any relevant information on the charges, reflecting room for improvement in clarity and transparency.

Traders Should Charge Accurately and Provide “No Plastic Bag” Option

At present, consumers can decide whether to buy plastic bags on the spot at physical shops, but according to this trial, online customers can only passively let the trader determine the charge and number of plastic bags provided, without any option for declining plastic bags, choosing the number of bags, or eliminating payment of the plastic bag charge. In addition, some traders were found to over-use plastic bags, such as putting prepackaged goods into additional plastic bags. The Council acknowledges the use of additional plastic bags by some online stores/e-commerce platforms due to logistics or transportation operational needs, but opines that shifting the cost to consumers or charging a higher plastic bag fee for distributing excessive plastic bags are both in breach of the producer responsibility or the polluter pays principles mentioned in the PERO. According to the EPD, it is not a violation of the PERO for traders to charge customers for the use of additional plastic bags, but traders should rethink the necessity of such packaging in accordance with the principle of “Use Less, Waste Less”. The Council is of the view that online stores/e-commerce platforms should clarify their charging policy and calculation criteria for plastic bag or packaging; streamline logistics and transportation systems; and fulfil their corporate responsibility in contribution to environment protection by various measures, such as simplifying packaging and using reusable and eco-friendly cartons suitable for food products, minimising the use of plastic bags, and allowing customers to decline the use or choose the quantity of plastic bags in their orders, so as to safeguard consumers’ right to make environmentally friendly choices. Furthermore, the Council also recommends the EPD to provide clearer guidelines on the services of online grocery shopping, such as stating the scope and quantity of additional plastic bags and insulated bags to be used by traders in the course of transportation, so as to further strengthen plastic reduction measures.

 

 

Download the article (Chinese only):  https://ccchoice.org/562onlineshoppingbags

 

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