New EU & US Legislation: What It Means for Product Data

Recently, several new regulations that raise the need for more accurate, transparent and localised product information have been introduced. Manufacturers, distributors and resellers should pay careful attention to stay ahead — some legislation is already taking effect in 2024.
 
At PIMICS, we naturally follow the legislative changes to keep our product up to date. Let us share them with you so that you can prepare your Product Information Management (PIM) on time. Here’s what we’re taking a look at:
 

• Digital Product Passport (DPP),
• Ecodesign for Sustainable Products Regulation (ESPR) ,
• Right to Repair,
• Proposition 65: California Safe Drinking Water Act.

Digital Product Passport (DPP)

This legislation is all about making it easier for buyers and shoppers in the EU. Thanks to DPP, they can make informed decisions at every single touchpoint. Regardless of where they buy the product, they should be able to know all about it. Its origin, materials used, environmental impact as well as disposal recommendations.
 
A DPP is a digital tool that enhances transparency by providing insights into a product’s lifecycle and environmental footprint across its entire value chain. It addresses the demand for transparency from consumers, investors, and stakeholders due to the current lack of reliable data.
 
Starting in 2024 with textiles and heavy batteries, more industries will be gradually added so that DPP covers all products by 2030.

New Ecodesign Legislation

This goes hand in hand with the DPP as it has been introduced by the EU as a key component of the proposed Ecodesign for Sustainable Products Regulation (ESPR).
 
Set to enter into force on 18 July 2024, these regulations require more sustainable manufacturing of products — so that they are easy to reuse, upcycle and, for instance, made with less resources in production.
 
Once the EU makes a decision for your industry, you need to comply within 9 months. Here are the prioritised products in this legislation for now:
 

• iron,
• steel,
• aluminium,
• textiles,
• furniture,
• tyres,
• detergents,
• paint
• and chemicals.

Right to Repair

Since early 2024, the EU has reinforced a new “the right to repair” legislation — with the goal to reduce waste and make repairs easy and attractive for consumers (rather than just replacing products with new ones).
 
This new proposal introduces a “right to repair” for consumers both within and beyond the legal guarantee period. This applies to products that are technically repairable, such as vacuum cleaners, washing machines, smart phones, and tablets.
 
Simply put, once a guarantee of a vacuum cleaner has expired, it should be pretty simple for the customer to get it repaired — with all components (and repair tools) easily available.

Circular Economy: the Way Forward

From DPP to right to repair, these measures are a big step towards the circular economy which is now of utmost importance. It’s a model of production and consumption in which the life cycle of products gets “closed” and extended — by reusing, refurbishing, and recycling existing materials and products as long as possible.
As regulations evolve, managing comprehensive product data throughout the lifecycle (from production to resale and reuse) becomes essential.

Proposition 65: California Safe Drinking Water Act

Let’s make a quick stop in the US. New legislation has been introduced in the state of California — for those who sell products that include ingredients (even if just one) that might be harmful to the water sources and/or cause cancer. Such products have to be labelled with a warning called “Proposition 65”, which suggests the item might be dangerous.
 
If you fail to provide such information, you face a penalty up to 2,500 USD per violation per day (!) and have to take your product off the market.

Multi-Layered and Dynamic Data is What You Need

What’s the impact of all these regulations on your product data? Your PIM system will have to collect a larger volume of detailed and comprehensive data about products (such as their entire lifecycle, sustainability metrics, and regulatory compliance information).
 
Adaptability and scalability in managing data become paramount as we transition towards a circular economy and more sustainable practices. The challenge will be to quickly adapt to legislation that we’re not even yet aware of. All links of the supply chain will have to adapt to new regulations so it doesn’t really matter whether you’re mostly a producer, reseller, supplier — if you want your business to thrive, you’ll have to conform. Large players in your line of business will choose only suppliers who can adapt to the new situations. Iif you don’t, you won’t fit in.
 
Here’s what will help: Managing your product data in a multi-layered, highly dynamic and transparent model that can be expanded easily and that is easily compatible with systems that are used the most in your industry. You have to be prepared to add, for example, another batch or another layer of CO₂ emissions to the batch — because you started selling components from a different factory and that changed the entire product journey.
 
Managing product information in a robust product data management system is essential to succeed in e-commerce. Investing in a PIM solution lays a solid foundation and ensures long-term operational efficiency, scalability, and customer satisfaction.