BDO: Two sides of the coin, economic factors, about the draft of the European Union that tightens the obligations of manufacturers, – warranty and service, or life beyond the slowing down of the society in Fogagásto

By: Trademagazin Date: 2023. 04. 17. 09:16

What does it mean for consumer society and for the corporate sector that the European Union plans to tighten further in order to make the operation of several manufacturing segments more sustainable? From the point of view of consumer society, the most accessible element of this to the public is that it would drastically postpone the warranty and service obligation (and the obligation to supply spare parts) for durable devices sold in the EU. From the consumer side, this can clearly result in changes, but how does this affect the other side? In other words, the professional review of László Babicz, an employee of BDO Magyarország’s Financial Consulting business, is also about the economic side of the companies involved.

The European Commission’s draft aims at the long-term use of durable consumer goods, primarily household appliances, which would, among other things, oblige manufacturers to ensure the repairability of the products sold for a period of at least 5 and a maximum of 10 years. According to the draft published by the Commission at the end of March, this is how the replacement cycle of products, which has been getting shorter and shorter in recent years, can be postponed again, thus putting a stop to the drastic increase in the amount of e-waste, i.e. ultimately making the operation of the affected segments more sustainable. The draft, which seems to be suitable for keeping inflation at a level and reducing consumption in the EU, may affect the future of the consumer society, i.e. quite a few corporate segments, and the future of supplier, manufacturer and service companies based on them, in addition to purchasing habits.