The European Commission is preparing a reform of the rules governing the marketing and control of products in the single market to adapt them to the expansion of e-commerce and the transformation that supply chains have undergone.
The initiative, called European Product Act, is based on the consideration that the current European framework was conceived for a market that has changed profoundly. Digitalization, the growth of online shopping, and the emergence of new models linked to the circular economy have left, according to the draft, gaps that hinder the application of European product rules.
One of the phenomena justifying the reform is the "rapid and exponential" growth of e-commerce and, particularly, distance sales from third countries. The Commission believes that this transformation has complicated the distribution of responsibilities within increasingly international supply chains.
E-commerce forces adaptation of the rules
The framework that Brussels wants to reform is based on rules approved at different times, including Decision 768/2008, Regulation 765/2008, and Regulation 2019/1020 on market surveillance.
Since then, the Commission argues, products, manufacturing processes, and value chains have become more digitalized, interconnected, and complex. At the same time, e-commerce has made it easier for European consumers to acquire products sold directly from outside the Union.
Brussels believes that this new reality has caused legal uncertainty, uneven application of the rules, and problems in determining the responsibilities of different operators.
The Commission also identifies deficiencies in market surveillance, especially regarding e-commerce, as well as differences in the capacity for action within the Union and problems of cooperation among the authorities of the Member States.
A reform that goes beyond online shopping
E-commerce is not the only reason driving the review. The Commission also points to the expansion of new business models linked to the circular economy, including refurbishment and remanufacturing, which the current rules do not adequately address.
The general objective of the future European Product Act will be, therefore, to modernize the European framework for compliance with product standards and adapt it to a market in which goods and their supply chains have changed substantially compared to the scenario in which the current rules were designed.
The initiative will be part of the so-called European Product Package and will be coordinated with other community policies related to the single market, the circular economy, consumer protection, and customs.
The underlying approach of Brussels is that the growth of e-commerce and sales from third countries should not create gaps in the application of the single market rules, while seeking a more uniform application of the rules among the Member States.