EU Packaging Rules Bring Mail-Order Trade to a Standstill: Retailers Demand Revisions

At the heart of the conflict is the division of responsibilities along the supply chain. Under the PPWR, the manufacturer of the packaging material is responsible for compliance with pollutant limit values and for participation in a collection and recovery system. The producer, on the other hand – that is, the company that combines the packaging with its product – bears responsibility for the technical documentation and proof of conformity. "Der Hersteller produziert das Verpackungsmaterial und muss etwa sicherstellen, dass beispielsweise die Schadstoffgrenzwerte eingehalten werden und ist für Entsorgung bzw. die Teilnahme an einem Sammel- und Verwertungssystem verantwortlich. Der Erzeuger ist jenes Unternehmen, das die Verpackung mit seinem Produkt verbindet … Er ist somit für die technische Dokumentation verantwortlich und muss die entsprechende Konformität der Verpackung nachweisen können", states the regulation's explanatory text.

In practice, this division leads to legal uncertainty, according to retailers. Many mail-order companies do not know whether they, as producers, must independently prove the conformity of the packaging or whether the upstream manufacturer already provides the documentation. Since mail-order businesses frequently use packaging from various manufacturers, retailers face a multitude of different documentation obligations. This significantly slows down shipping, as parcels can sometimes not be sent at all or only with major delays.

Associations Demand Transition Period and Clearer Guidelines

The HDE also criticized the fact that the EU Commission has not yet published sufficient guidelines for implementation. Agenda Austria likewise reported on companies that have temporarily suspended or drastically reduced their deliveries. Both associations turned to the EU Commission in Brussels with concrete proposals for revisions and are calling for a transition period as well as clearer definitions of responsibilities.

Brussels initially offered only a brief statement. The EU Commission referred to ongoing consultations with industry and announced that it would continue to monitor the application in the coming weeks. Observers interpret this as a sign that the Commission is not ruling out possible adjustments but has not yet specified them.

Economic Consequences for Retailers and Consumers

The economic consequences for the industry are noticeable. Smaller online retailers report losses in revenue because customers cancel orders due to delayed deliveries. Larger shipping platforms are trying to cushion the bottlenecks through additional warehousing and alternative packaging suppliers. In the long term, according to the associations, rising packaging costs are to be expected if the regulations are not designed to be practical.

Consumer advocates are likewise watching the development with concern. They warn that any loosening of the PPWR requirements could jeopardize the goal of better recyclability of packaging. The regulation was originally adopted with a view to environmental and resource protection.

EU Commission Continues to Monitor Application

A response from the EU Commission is expected in the coming weeks. Both the HDE and Agenda Austria announced that they would maintain pressure on Brussels and consider further steps if revisions are not forthcoming.

The incident illustrates how complex the implementation of European sustainability regulations can be in practice. While the goals – less packaging waste and better recyclability – are fundamentally supported by most stakeholders, there is currently a significant gap between the text of the regulation and its application in the day-to-day operations of the mail-order trade.