EU Directive on the "right to repair": What companies need to know

The EU directive on common rules for the promotion of the repair of goods will oblige manufacturers and, in certain circumstances, importers and distributors of certain goods, to offer repairs and provide information about repairs even after the warranty period has expired.

The aim: Reduction of CO2 emissions and waste

In March 2023, the EU Commission presented a proposal for a directive on common rules to promote the repair of goods ("right to repair"). The European Parliament approved the proposal by a large majority in April 2024. The initiative is part of the so-called European Green Deal and is closely linked to the proposal for a European Ecodesign Regulation.

With the European Green Deal, the EU is pursuing the plan to emit at least 55% less greenhouse gases by 2030 compared to 1990 levels. By 2050, Europe is to become the first climate-neutral continent in the world. It is estimated that European consumers produce around 35 million tons of waste every year because products are replaced with new ones instead of being repaired.

The right to repair: "Repairing instead of throwing away"

The directive on the repair of goods stipulates that manufacturers of certain goods will be obliged to offer repairs beyond the warranty period. Until now, the legal obligation to repair or replace goods ended at the end of the warranty period, i.e. usually after two years. Repairs should become more attractive for consumers in the future. The aim of the directive is to make the repair of products a real and attractive alternative to the purchase of a new product. The directive provides for a number of changes in this respect:

• The manufacturer may only refuse to repair the goods if it is impossible for him to do so. However, the repair cannot be refused on the grounds that a third party has repaired the goods or that the procurement of spare parts would involve considerable costs.
• If a repair is carried out under the warranty, the warranty period will be extended once by twelve months.
• The repair shall be carried out within a reasonable period of time. The manufacturer may offer the consumer a replacement appliance, either free of charge or for a fee, to bridge the repair period.
• If the repair is not possible, the manufacturer may offer the consumer a refurbished product.

Manufacturers will not be required to perform repairs themselves. They can subcontract repairs to third parties. The duration of the repair obligation has not yet been clarified. The proposal for the Ecodesign Regulation could provide an indication, generally assuming a period of 10 years, although this may be shorter or longer depending on the product group.

Outside the statutory warranty, repairs do not have to be free of charge. However, the repair costs must be reasonable and consumers must be informed in advance. Cost transparency and comparability for consumers will also be ensured through a standardized European repair information form, which must be made available to consumers free of charge.

A European online platform for repairs and refurbished goods will also be launched. This will make repair services more visible, comparable and competitive.

Manufacturers who also produce spare parts must make these available to third parties at a reasonable price. The directive also prohibits manufacturers from using contractual, technical or software settings to make repairs more difficult.

Infringements of the right to repair are to be sanctioned. The Member States shall provide for appropriate and dissuasive sanctions.

Goods concerned:

Initially, the right to repair under the directive will be limited to certain goods listed in the Annex to the directive. These include: Domestic washing machines and washer-dryers, dishwashers, refrigerators, monitors, welding equipment, vacuum cleaners, servers or data storage systems, cell phones, smartphones and tablets as well as goods containing batteries for light means of transport within the meaning of EU Regulation 2023/1542. Moreover, the EU Commission can continuously expand the list of affected goods.

Obligated group of persons:

First and foremost, the obligations under the directive apply for the manufacturer of the product. If the manufacturer is based outside the EU, an authorized representative in the EU has to fulfil the manufacturer's obligations. If there is no authorized representative, the importer is obliged. If there is no importer, the distributor must directly fulfill all of the manufacturer's obligations.

What now needs to be considered in practice:

Implementing the legal provisions will require financial, logistical and human resources from affected companies. First, manufacturers need to examine whether they will be required by the directive to carry out repairs for their products in the future. During product development and manufacture of new products, manufacturers must ensure that the design and programming of their products do not impair their reparability. The requirements of the Ecodesign Regulation are important in this context. As repairs will become more important, there is likely to be increased focus on stocking spare parts.

The directive can also be an opportunity for new business models. Distributors and other companies can position themselves as providers of repair services. If repairs are to be carried out by third parties, the cooperation should be contractually regulated in good time. In this way, manufacturers can secure sufficient repair capacities.

What happens now?

The member states must transpose the directive into national law within the next 24 months. The responsible German Federal Ministry for the Environment and Consumer Protection has already announced that it will present the draft in 2024. It is also possible that the directive will be implemented in Germany beyond its scope, meaning that the obligations will also apply in the B2B sector. Under the directive, only consumers would have a right to repair.