On April 23, 2024, the European Parliament, after years of discussion, adopted the Right to Repair Directive (R2RD) – legislation that imposes new obligations on manufactures across all industries, with the aim of encouraging consumers to choose repair over replacement. The measure, which must still go through the European Council’s formal approval process, is expected to significantly reduce waste and contribute to the circular economy. Below, we look at how this will impact the market and businesses.

The new directive and its historic background

The European Green Deal – the broad slate of legislative initiatives aimed to make the EU climate neutral by 2050 – was launched by the European Commission (EC) in December 2019. Many of the measures are aimed at making products more sustainable and reducing both business and consumer waste.

In March 2020, the EC announced a new circular economy action plan that was followed in November 2020 by the launch of the New Consumer Agenda. Now, as part of these initiatives, the EC proposed a new Directive on common rules promoting the repair of goods – known as the Right to Repair Directive.

Provisional political agreement was reached by EU institutions on the R2RD on 2 February 2024. The Directive now moves to formal adoption before publication in the Official Journal. Member states will then have two years to introduce implementing legislation.

Consequently, the R2RD will amend existing texts:

• Regulation (EU) 2017/2394 of December 12, 2017, on cooperation between national authorities responsible for the enforcement of consumer protection laws.
• Directive (EU) 2019/771 of May 20, 2019, on certain aspects concerning contracts for the sale of goods.
• Directive (EU) 2020/1828 of the European Parliament and of the Council of November 25, 2020, on representative actions for the protection of the collective interests of consumers.

What is it about?

Following the implementation of R2RD, the new rules will introduce the “right to repair” for consumers, both within and beyond the warranty period, which will make it easier and more cost-effective for them to repair products instead of simply replacing them with new ones. This will result in savings for consumers, boost the circular economy and support the objectives of sustainable consumption and of the European Green Deal by reducing waste.

Manufacturers will now have to offer repair services, even after legal warranty period has expired. If repair under the warranty period is offered, consumers will now benefit from a extended warranty period of one year.

When the warranty period has expired, consumers will have the right to request an easier and cheaper repair of defects in products that must be technically repairable (these include products such as tablets and smartphones, but also washing machines, dishwashers, and other household appliances).

Impact on the market

The new regulation will have a special impact on manufacturers of products from the consumer and technology sectors. The R2RD also opens the aftersales markets for these products. Manufacturers will likely face increased competition by repairers who may fix products at lower costs, but they will also see additional, cheaper products on the European market. In summary, although the R2RD currently covers only a limited group of products, manufacturers will face increased competition in the aftersales and repair market.

Obligations for businesses

The R2RD introduces a new “right to repair” for consumers, both within and beyond the warranty period and at the same time new obligations for businesses.

While the warrantee is in effect, sellers will be required to offer to repair defective and damaged products, unless it is more expensive than replacement.

Beyond the warranty, a new set of rights and tools will be available to consumers to make repair an easy and accessible option:

• A right for consumers to request producers to repair products that are technically repairable under EU law – for example, a washing machine or a TV. This will ensure that consumers always have someone to turn to when they opt to repair their products, as well as to encourage producers to develop more sustainable business models.
• A producer’s obligation to inform consumers about which products they must repair themselves.
• An online matchmaking repair platform to connect consumers with repairers and sellers of refurbished goods in their area. The platform will enable searches by location and quality standards, helping consumers find attractive offers and boosting visibility for repairers.
• A European Repair Information Form, which consumers will be able to request from any repairer, bringing transparency to the conditions for repair and the cost as well as making it easier for consumers to compare repair offers.
• A European quality standard for repair services will be developed to help consumers identify repairers who commit to a higher quality. This “easy repair” standard will be open to all repairers across the EU willing to commit to minimum quality standards, for example, based on duration, or availability of products.

The R2RD also requires member states to take at least one measure that promotes repair, for example in the form of repair vouchers, repair funds or support to local repair initiatives. Such measures can be supported by EU funds, as is already the case in some member states.

Penalties

The R2RD, as published on 14 February 2024, includes a recommendation that it is “necessary” for member states to set out penalties for its infringement and to ensure enforcement, further noting that “the penalties should be effective, proportionate and dissuasive.” (26b).