Major online marketplaces pledge fair treatment for small businesses

Leading online marketplaces and payment providers, including eBay, PayPal and Temu, have collectively signed a pledge that promotes fair treatment for small businesses.

The new 10-point pledge, centred on cashflow and payments, includes commitments to communicate effectively with small businesses when funds are withheld, support them understanding their obligations and to deal with complaints or issues as swiftly as possible.

The pledge comes as part of new guidance published by the Small Business Commissioner which aims to support small businesses going digital through online marketplaces and payment providers. It

The guidance accompanying the pledge sets out the terms under which businesses may have their funds withheld, including the regulations under which the platforms operate. It also advises small businesses how they can effectively navigate this and avoid situations where their funds are withheld.

Small Business Commissioner, Emma Jones, launched guidance at the “Free the Founder” event, and promised to work with all online marketplaces and payment providers to reach as many small businesses as possible. She said:

“I’m delighted to see so many major businesses show real leadership and commit to treating small businesses fairly. Online marketplaces and payment providers can help boost small business productivity, but they are also under a wide range of legal obligations which can often impact small businesses access to their funds.

“This guidance, along with the pledge made by these companies, will help to ensure small business know their rights, have the support they need, understand what factors influence the withholding of funds and help them make the most of the opportunity going digital brings.

“This is also just the start. We are working with more companies that we hope will be able to sign in due course so that we can promote this guidance and reach the widest audience of SMEs.”

Eve Williams, VP and General Manager, eBay UK, said:

“We want to make sure that our sellers get paid as quickly as possible, especially the hundreds of thousands of small businesses who use our platform every day.  We know how vital cash flow is to allowing small businesses to invest and grow.  

“Sometimes we have to hold payments either because of regulations or as part of our efforts to ensure a safe marketplace for our buyers.  However, this should be the exception rather than the rule.  We therefore welcome this initiative by the Small Business Commissioner to help businesses get the support they need to grow.”

Georgina Robertson, Head of SMB UK, PayPal said:

“Small businesses are the driving force behind local economies, and they remain at the heart of everything we do at PayPal. We engage with them daily and understand the unique challenges they face, from managing cash flow and building customer trust to scaling operations in an increasingly digital marketplace.

“We are proud to sign this pledge as part of our ongoing commitment to provide small businesses with financing and safe, secure, and easy to use digital payment solutions that not only help them get paid swiftly but also protect them and their customers at every stage of their journey.

“We look forward to continuing our collaboration with the Small Business Commissioner as the new guidance is published, strengthening our shared mission to empower small business success.”

Mr. Qin Sun, Director at Temu UK, said: 

“We’re proud to join this pledge as part of our commitment to creating growth opportunities for small businesses. It reinforces our approach of ensuring fair treatment and timely payments, so sellers can focus on building their businesses on Temu.”