Joint press release
Paris, May 11, 2021
Private copying levy on refurbished devices:
The purchasing power of the French under threat
Starting in June 2021, French consumers' purchasing power will be threatened by rising prices for refurbished smartphones and computers. The Commission for Private Copying Remuneration wants to introduce a new levy on these essential goods. At a time when access to these products has become a basic necessity, this move poses a major threat to the purchasing power of French consumers, already weakened by the health crisis.
This is nothing new: access to tech products was already a significant expense for French consumers, exacerbated by the lockdowns of 2020. Unthinkable just a few years ago, the price of a new smartphone is now higher than that of a computer. On average, it costs €420[1]to buy one, which is a fortune for most consumers!
In this context, refurbished products have become an essential solution, with1 in 5 French people having already taken the plunge. These refurbished items, whose functionality is guaranteed by professionals, are up to70% cheaperthan their new counterparts. This represents a significant saving for the majority of consumers: 67% of French people interested in refurbished smartphones say that it is their price that makes them attractive[3].
However, Copie France, the company that collectsprivate copyingroyalties, has been trying for several months to impose a €14 levyon phones with more than 64 gigabytes of storage, which represents nearly 90% of the market. This additional cost will have a significant impact on French consumers' wallets, as it will effectively increase the price of refurbished phones at a time when they have never been more popular with the general public. In fact,2.6 million models were sold in 2020, 20% more than last year.
For its part, the Private Copying Commission is working on a new official scale for second-hand products. But whatever the amount, this new levy will have a direct and immediate impact on the purchasing power of the most modest French citizens: it will increase the cost of access to tech products that have become essential and are also more environmentally friendly.
Applying the private copying levy first to phones and then to refurbished computers will immediately increase prices for consumers. It will also further widen the digital divide, which is already very real and continues to grow with the current crisis.
It also deals a severe blow to the refurbished goods sector, threatening thousands of jobs in France and undermining efforts to reduce the environmental impact of digital technology. It should be remembered that more than 75% of this impact comes from the manufacture of devices. Extending their lifespan is therefore key. Paradoxically, it is the government itself that says so[5].
It is urgent and essential that the government show courage and consistency by explicitly exempting refurbished products from this tax in order to preserve the purchasing power of French consumers and the future of an entire promising industry.
Signatories
Jean Lionel Laccourreye, President of Sirrmiet
Benoit Varin, President of Rcube
Thibaud Hug de Larauze, CEO of Back Market
Karine Schrenzel, Chief Executive Officer of Rue du Commerce
Thierry Petit, Co-CEO, Showroomprivé.com
Xavier Court, co-founder and partner of Veepee
Jérôme Arnaud, Chief Executive Officer of Cordon Group
[1]Prices for 2019, GFK annual study
[2]IFOP study for Smaaart
[3]Kantar Barometer for Recommerce 2021 "THE SECOND-HAND MOBILE MARKET"
[4]GFK Annual Study 2020
[5]Environment and Digital Roadmap
