Unpacking the EU’s new Consumers package

Digital panel discussion with GC experts in Brussels Ana Martínez, Radostina Primova and Laura Sussman, discussing the EU’s new Consumers package, the key aspects, challenges and opportunities of the new proposals and their impact on the operations of businesses and consumers.

The key discussion points from the event include:

• The consumer package is the European Commission’s response to increasing pressure to address repairability and greenwashing. The Commission published on March 22nd the Right to Repair Directive and the Green Claims Directive as part of the consumer package. The package is part of the broader Circular Economy Action Plan, which in part aims to empower consumers to have more sustainable choices. A major driver for the Green Claims Directive has been statistics outlining that 40% of claims are completely unsubstantiated and around 53% of them are vague, misleading and unfounded. The proposal has also been driven by the environmental impact of electronic waste, the high cost of repairs and frequent device replacements, and the need to address underlying issues related to product obsolescence and repairability.
• The approach required for companies to substantiate their environmental claims and the severity of penalties will be controversial during trilogues on the Green Claims Directive. The Commission’s draft proposal to use the European Product Environmental Footprint as a single method to verify green claims has been criticised by businesses and industry groups. If adopted, the Directive would have an impact on companies that sell and advertise goods and services in the EU and make claims about the environmental performance of products. Businesses would need to reconsider their marketing strategies, messaging and advertisement as a result. Additional costs would also arise due to the product certification, testing and studies that might be required to substantiate their claims.
• The Right to Repair Directive would provide major changes in product design, production, and supply chains. The proposal provides three main new provisions. Firstly, it would amend the existing Sale of Good Directive adding prioritisation of repair when it is cheaper than or as expensive as a replacement. Secondly, the Directive would include an obligation to repair a number of household goods as well as smartphones and tablets after the two-year legal warranty for a period of 10 years. Thirdly, the Directive would increase the transparency and formalisation of repairs via the European Repair Information Form and the new online platform. The proposal has been criticised by industry arguing that prioritising repair could prevent innovation, as consumers would replace products less frequently and there would be significantly less demand for novel alternatives.