The Council of the European Union has given final approval to the Directives on Right to Repair (R2RD). Once signed by the presidents of the Council and the European Parliament, the directives will appear in the Official Journal and member states will have two years to follow them. What will this mean for businesses and what should they consider? 

This article is written by Cem Adiyaman ([email protected]).  Cem is part of RSM Netherlands Business Consulting Services with a specific focus on International Trade and Strategy matters. 

R2RD?

The Commission proposed the Right to Repair Directive on March 22, 2023, as part of the new consumer agenda and the action plan for the circular economy. This directive complements other recent legislative initiatives aimed at promoting sustainable consumption, such as the sustainable products regulation and the directive on empowering consumers for the green transition. The implementation of R2RD introduces new consumer rights allowing easier and more cost-effective repairs for products, both within and beyond the warranty period. This initiative aims to reduce the need for replacements, thereby saving money for consumers, enhancing the circular economy, and supporting the sustainability goals of the European Green Deal by decreasing waste.

Under these new regulations, manufacturers are obligated to provide repair services even after the warranty period has expired. Consumers will also benefit from an additional one-year warranty if a repair is made during the warranty period. After the expiration of the warranty, consumers will have the right to request simpler and cheaper repairs for products designed to be technically repairable. This includes devices like tablets and smartphones, as well as household appliances such as washing machines and dishwashers. 

Market Impact & Business Obligations

The new regulation will significantly affect manufacturers in the consumer and technology sectors, particularly by opening the aftersales market for their products. This will likely lead to increased competition from independent repair services that can offer lower-cost solutions. Consequently, manufacturers may also need to compete with additional, more affordable products entering the European market. While the R2RD currently applies to a limited range of products, it is expected to heighten competition in the aftersales and repair markets.

The R2RD introduces a comprehensive “right to repair” for consumers, both during and after the warranty period, imposing new responsibilities on businesses. During the warranty period, sellers must offer to repair defective or damaged products unless the cost of repair exceeds the cost of replacement.

After the warranty period, consumers will gain new rights and tools to facilitate easy and accessible repairs:

  • Consumers can request manufacturers to repair products that are legally required to be repairable, such as washing machines or televisions. This provision ensures that consumers always have a repair option and encourages manufacturers to adopt more sustainable business practices.
  • Manufacturers must inform consumers about which products they are required to repair themselves.
  • An online platform will connect consumers with local repair services and sellers of refurbished goods, allowing users to search by location and quality standards to find the best offers, thus increasing the visibility of repair services.
  • A European Repair Information Form will be available, providing transparency about repair conditions and costs, enabling consumers to compare repair options easily.
  • A European quality standard for repair services will be established, helping consumers identify high-quality repair services. This "easy repair" standard will be accessible to all repairers in the EU who commit to minimum quality standards, such as service duration and product availability.
  • Member states are required to implement at least one measure promoting repair, such as repair vouchers, repair funds, or support for local repair initiatives, potentially backed by EU funds, as seen in some member states already.

Next Steps

Following its formal adoption, the directive will be signed by the President of the Parliament and the President of the Council, and then published in the Official Journal of the European Union. It will come into effect 20 days after publication, with member states given 24 months to transpose the directive into national legislation.  

Regarding penalties The R2RD includes a recommendation for member states to establish penalties for non-compliance and to ensure enforcement. It emphasizes that these penalties should be effective, proportionate, and dissuasive.

Forward Thinking 

Looking ahead, the directive is poised to not only benefit consumers and manufacturers but also to create high-quality jobs within Europe, contributing to economic growth and environmental sustainability. This initiative aligns with the EU's broader goals under the new consumer agenda and the action plan for the circular economy. By fostering sustainable consumption practices and empowering consumers to make informed purchasing decisions, the directive represents a significant step towards a greener future. 

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