Is your company selling, or interested in selling products on the European market? If so, you should be aware of a current EU regulatory trend that may impact your business. More specifically, a current proposal drafted by the European Commission (EC) seeks to strengthen market surveillance in the EU and, consequently, in the European Economic Area (EEA). The proposed ‘Regulation on Enforcement and Compliance’ is one element of what is commonly known as the ‘Goods Package’. If adopted, this package will impact a wide array of product categories (e.g. toys, electronics, construction products, and personal protective equipment). It may mean expanded powers for market surveillance authorities (MSAs), more collaboration among the various MSAs, and more stringent product compliance checks. In cases of non-compliance, for manufacturers this may mean official requests from MSAs to fix certain issues related to product information, fines, or even removal of products from the market.   

Although the EC is responsible for setting the health, safety, and environmental requirements (e.g. New Legislative Framework and CE marking) for products sold in the EEA, it is up to the individual Member States to surveil the marketplace and ensure that manufacturers, distributors, and importers are fulfilling their responsibilities as economic operators. Many MSA’s have limited resources and one concern among many people in Brussels is how Member States will pay for increased market surveillance including factory visits and product inspections.

The EU’s Single Market, recognized by many as ‘Europe’s greatest accomplishment’, is celebrating its 25th birthday this year. However, the EC has publicly recognized the serious problems that Europe currently faces with non-compliant products. According to an EC press release from December 19, 2017, “There are still too many unsafe and non-compliant products sold on the EU market: as many as 32% of toys, 58% of electronics, 47% of construction products or 40% of personal protective equipment inspected do not meet the requirements for safety or consumer information foreseen in EU legislation”. These numbers are staggering. And this is only the products that have been inspected!

That means that 1 in 3 toys inspected in EEA do not meet EU safety or consumer information requirements.  We give these products to our children to open at Christmas and play with around the tree. That means that over half the electronics inspected in the EEA do not meet EU requirements.  We use these products at home, we wear them when we exercise, we even use them in our cars while driving. You get the picture. These products are ubiquitous in our modern lives and, for those of us living in Europe, they may pose a threat to our safety. But this isn’t the focus of today’s blog, it only serves to illustrate the severity of the problem that the EC intends to address. It’s not easy turning 25. A cool new wireless gadget would be a great gift for the Single Market! But let’s make sure that it’s compliant with EU safety rules…

The European Parliament, a co-legislator in the EU, is currently considering the proposal. In March 2018, the Internal Market and Consumer Protection Committee, the committee responsible, hosted a hearing with experts in the field to discuss the proposals. If the Parliament approves the proposal, the Council of the European Union will then have to agree on the text before adoption.  The timeline is still unclear.

So, what’s the point?

  • Europe has a serious problem with non-compliant products that may pose serious safety risks to consumers and workers. The EU is working to solve this issue and these regulatory instruments may impact your business. Step one is recognizing that you have a problem.
  • The EU is working to strengthen the internal market with its regulatory toolbox, which is good for everyone. Manufacturers that spend valuable resources to ensure that their products comply with regulatory requirements have a competitive disadvantage in the European market. It’s clear that rogue market players selling non-compliant products can afford to sell their products at lower prices. As they would say in Brussels, Europe needs a level playing field.
  • Compliance with the relevant EU product safety and environmental requirements (e.g. CE marking) will ensure that your company avoids delays at customs, administrative costs, fines, and/or removal of your products from the European market. Whether you’re new to the European market or simply need a product compliance check-up, Fredricks Consulting can help!

Stay tuned for more insights on the EU regulatory and policy jungle!

The information provided in this blog is accurate to the best of our knowledge but should not be considered as legal advice.  Louis W. Fredricks takes no responsibility for actions taken based on the information provided here. Companies must do careful due diligence when making decisions related to regulatory compliance, government relations, and international business development.