Majid had challenged the legality of the retailer handling fees imposed by Circularity Scotland. However, the Scottish government has now put the Deposit Return Scheme (DRS) on hold, leading to Circularity Scotland’s administration.
In response to the judgment, Pete Cheema, CEO of the Scottish Grocers Federation (SGF), stated, “The court of session has deemed the setup of the deposit return scheme by the Scottish government and Circularity Scotland as unlawful, as it did not comply with the regulations established by the Scottish parliament.” Cheema further added, “Circularity Scotland did not have the authority to set the fees imposed on retailers. Even if they did, they erred by implementing a flat fee for all retailers, disregarding the varying costs borne by operators.”
Essentially, this decision halts the progress of the DRS in its current form. Despite significant efforts by the SGF to draw the Scottish government’s attention to the issue, it took an independent retailer’s legal action to obtain this ruling. Cheema highlighted, “We had even informed circular economy minister Lorna Slater that Circularity Scotland was breaching its license. However, she chose not to support us, even though it was evident that we were right.”
Additionally, the SGF had consistently warned the Scottish government that the DRS was not industry-led. Despite representing the highest number of return point operators, their concerns were consistently ignored. Looking ahead, the SGF hopes that the UK government will enforce this legal position when introducing the UK-wide DRS scheme in October 2025.
Following the Court of Session’s verdict in his favor, Majid expressed his delight. He emphasized that his case was not just on his behalf but also for the numerous other retailers who would have been adversely affected by Circularity Scotland’s plans for the retail handling fee. Majid noted, “The illegality of the retailer handling fees was evident from the beginning, and this concern was appropriately raised. The Scottish government and Circularity Scotland were urged to address retailers’ apprehensions to prevent the resulting confusion and uncertainty. However, despite the diligent efforts of Dr. Pete Cheema and the SGF, their calls went unanswered.” Majid then expressed hope that the UK government would take note of this decision to avoid a similar situation in any future UK-wide schemes.
In conclusion, Majid’s victory brings relief not only to himself but also to other retailers who may have faced detrimental consequences had Circularity Scotland been allowed to proceed with its plans for the retail handling fee. The ruling establishes the unlawfulness of the previous setup and emphasizes the importance of considering retailers’ concerns in the development of future schemes.
