Why we should boycott Black Friday

Black Friday – should we boycott Amazon and FAANG?

 I’m not a fan of Black Friday on a few levels and was interested to hear that actually 90% of the products available in these sales can be found at the same price or cheaper at the start of the year (Which.co.uk survey published yesterday)

However, the real reason I dislike it is that the main proponent and beneficiary is Amazon.  Yes, they are amazing company, yes, they are insanely innovative but still theirs and other digital giants’ tax affairs have made many sick to the bone for a long time.

Whilst celebrities were shamed and fessed up relating to some shady tax vehicles a few years back, and MPs backtracked (with some careers ending) due to the expenses scandal, the most powerful companies seem to just style it out. 

The problem is they are so good at what they do so we keep coming back.  Not to mention that so many of us in tech almost worship them.  They are not being held to account.

I’m the same as most. About 5 years ago I even went to the length of writing Amazon an email to say I wasn’t impressed, and I would be withholding my business. I lasted a few weeks before I was back!  I’m currently fully signed up to Prime + video as well as lots of products from the other digital giants.  I do try to use other sites (thanks Waterstones) even if the experience isn’t as slick, but I should try harder.

Amazon openly says the UK is one of its main global hubs but its UK finances are opaque and profits and revenue are accounted for in Luxembourg. It paid a pitiful ￡14m in corporation tax last year via Amazon UK services.

Isn’t everyone at it?

It’s not just Amazon, Apple are extremely crafty using consultants specialising in tax shelters and recognising $128 billion (!!!) offshore that largely avoid even US taxation systems – I believe there was a Panorama on this a couple years back. And then all that streaming we do doesn’t pay back; In 2019 Netflix recorded 100’s of millions of UK revenue, paying no corporation tax (yet receiving tax relief).

I’d have to agree with Dame Margaret Hodge who described Netflix’s tax structure as “scandalous, intolerable and unfair” to the House of Commons in February of this year. 

The more commercially minded amongst you may make the point that they are doing what any business would do and minimising their tax bills (which UK only businesses do too). But the bigger and more global you get the more advantages there are, the better consultants you hire, and the more influence you have. And being digital-first companies allows them to be more nimble.  I feel like these companies should be setting the example and they are not. If you make a lot of money in a country, you need to contribute fairly.

It’s insane that UK national retailers, not to mention the smaller local business that keep communities together, are footing so much more of the bill – it’s a huge competitive disadvantage to them. To add to the pain of 2020, Faang are storming further ahead.

What can we do?

Governments are inherently short term and things like the proposed UK digital tax do not really scratch the surface or make up for corporation tax. Obviously, it’s a  much more complex and global picture than what I’ve described and hard to tackle for them. 

The other issue is that these companies who are “helping consumers and keeping prices low” fight back. Amazon increased seller fees in France last year after the introduction of a digital tax there (3%). Governments are afraid to do anything that might disadvantage their electorate.

My view is the only thing that will be listened to is consumer power.

The customers that keep the money rolling in.  (I’m sure there are also employees of Faang who aren’t happy about it too).

I’m certainly making an effort to shop local over Christmas and use UK retailers (probably won’t have the time to check all their tax affairs!). Smaller companies are getting more savvy online even if they can’t give ‘free’ delivery. And then there are sites like Trouva that aggregate and let you shop from many local businesses and do it all online.  

Perhaps though what is really needed longer term is a more coordinated campaign from consumers that sends a clearer message. Like a day where we all resist the urge to click that item that you’ll get tomorrow. White Wednesdays anyone?!

(Opinions expressed here are all my own. I’ve been wary of writing this article for some time for work reasons. I am simply expressing an opinion of something that feels wrong. I’m happy to hear your comments and read more about the topic as I’m by no means a taxation expert. I hope that most agree that the playing field needs levelling….)