Welcome to the Retail, Food & Hospitality Regulatory & EU round-up. Week ending 15 February 2026.

This week’s regulatory developments in order of importance, so you can ensure you're up to date with the latest changes impacting your business. 

Retail, Food & Hospitality Important updates

Consultation on extension of outdoor smoking ban and inclusion of heated tobacco products and vapes: The Department of Health and Social Care has issued a consultation on proposals to extend existing smoking area bans to heated tobacco and vape products and to extend the bans to medical facility grounds, kids playgrounds and schools. Responses are required by 8^th May. Consultation > Press release >

Supreme Court rules against use of term ‘Post milk generation’ for oat-based drink. In a case brought by Trade Association Diary UK challenging use of the Trademark ‘Post Milk generation’ by Oatly Ltd for an oat based drink the Supreme Court has ruled that the term does use the legal designation milk and does not describe an essential characteristic of the oat-meal drink product and therefore cannot be used. View >

Buy now pay later schemes to be supervised by Financial Conduct Authority. From 15^th July lenders will need to be authorised by the FCA to provide buy now pay later credit agreements (BNPL). Suppliers that provide their own credit will remain exempt from regulation. Firms will be able to register for the temporary permissions regime between 15 May 2026 and 1 July 2026. Firms will have 6 months (from the date the regime comes into force) to apply for full authorisation. BNPL will be subject to the Consumer Duty and consumers will benefit from:

• Clear information: Consumers will get clear, upfront details about their agreement, including when payments will be due, amounts, and what happens if they miss a payment.

• Affordability checks: Lenders must carry out proportionate checks to make sure customers can afford to repay what they borrow before offering BNPL.

• Support when needed: Lenders will need to offer support to customers in financial difficulty, and, where appropriate, direct them to free debt advice.

• Complaints and compensation: If something goes wrong, consumers will be able to complain to the Financial Ombudsman Service.

View >

Competition and markets Authority impose penalty for failure to comply with information request: The CMA has imposed a penalty of £473k on Euro Car Parks for failing to respond to a notice that legally required the company to provide information. The penalty marks the first use of the CMA’s new fining powers, granted by the Digital Markets, Competition and Consumers Act 2024 (DMCCA). The penalty has been issued under Schedule 5 Consumer Rights Act 2015 (as amended by the DMCCA 2024), which allows the CMA to fine businesses for failing to comply with information requests. The maximum penalties the CMA can impose for this failure are a fixed sum of £30,000 or (if higher) 1% of the business’ turnover and/or a daily penalty of £15,000 of (if higher) 5% of the business’ daily turnover. Euro Car Parks Limited has appealed the CMA’s decision to the High Court. The fine is not payable until this appeal is determined or withdrawn, unless the court orders otherwise. Press release > Decision >

EU updates

EU Council confirm 3 Euro duty rate for small parcels from 1 July: EU member states have agreed to introduce an interim flat rate customs duty of €3 on items contained in small parcels valued at less than €150 sent directly to consumers in the EU. As of 1 July 2026, the duty will be levied on each different category of item, identified by their tariff sub-headings, contained in a parcel.

Example:

A parcel contains 1 blouse made of silk and 2 blouses made of wool. Therefore, due to their different tariff sub-headings, the parcel contains two distinct items and €6 in customs duty should be paid.The interim flat rate customs duty of €3 will be levied on each item category contained in a small parcel entering the EU from 1 July 2026 to 1 July 2028 and may be extended as appropriate. Once the new EU customs data hub is operational, this interim duty will be replaced by normal customs tariffs.

View >

EU Parliament vote to protect farmers from unfair trading practices: To strengthen the protection of farmers, the new legislation will allow member states to intervene automatically and stop cross-border unfair trading practices on their own initiative without needing a complaint from a producer.  View >

EU Regulations:

• Authorising biocide. Divodes FG Family >

• Amending approval conditions for plant protection product. maleic hydrazide >

European Food Safety Authority opinions:

• On dietary exposure to methyl mercury through fish and shellfish. View >

• Peer review of pesticide risk assessments. cinmethylin > diflufenican >

• Import tolerances for pesticide in grapes. dimethomorph >

• Updated statement on cannabidiol as a novel food. View >

Developments to watch

Scottish Government: Publish regulations to ban plastics in wet wipes from 18 May 2027. View >

DEFRA: Clear inclusion of glass in Scottish packaging deposit return scheme under Single Market Act. View > Association of Convenience Stores > British Retail Consortium >

DEFRA: Consult on four fisheries management plans – Responses required by 5 May. View >

Home Office: Publish updated statutory guidance under Licensing Act 2003. View >

Food Standards Scotland: Publish strategy for 2026-2031. View >

Competition and Markets Authority: Executive Director delivers speech on progress and priorities under the Digital Markets, Competition and Consumers Act 2024. View >

For your information

Non-food product safety alerts: Office for Product Safety and Standards > EU Safety Gate > US Consumer Product Safety Commission >

Office for Product Safety and Standards: Publish updated list of desinate4d toy safety standards. View >

DEFRA: Environment Secretary, Emma Reynolds delivers speech on food security, resilience and standards to a French audience. View >

US Food and Drugs Administration: Launch assessment of food preservative butylated hydroxyanisole (BHA). View >