EU Waste Packaging Rules: Why Small Businesses Are Worried

The European Union has introduced new rules targeting packaging waste and forever chemicals, specifically PFAS, starting on Wednesday. The changes aim to reduce waste, improve public health, and limit exposure to highly persistent chemicals. These rules impact small businesses and online traders, who are worried about the additional red tape and costs involved.

PFAS, which have been linked to certain cancers and other health conditions, are used in food packaging to make it grease- and water-resistant. The rules ban high levels of PFAS in packaging that comes into contact with food. Despite the low risk from food packaging, scientists are concerned about the long-term effects of PFAS accumulation in the body and environment.

The new rules require businesses to register their packaging in multiple EU states, often with fees, adding to the complexity and cost for small sellers. Händlerbund, the German online retailers' association, warned that the new rules would impose five-figure costs for medium-sized firms with no minimum quantity or exceptions for small businesses.

Several small businesses, including sole traders and medium-sized firms, have paused shipments due to the new rules. For instance, a small online store owner, Monstaas Workshop, complained about the €300 ($346) annual cost of appointing an authorized representative in every EU country they send to. Swedish electronics maker iLabs Electronics also announced it would halt web shop orders from EU countries due to the high administrative burden.

Despite the consumer impact being minimal, many businesses argue that the new rules are too complicated and costly. EU lawmaker Elisabeth Dieringer from the far-right Freedom Party of Austria warned that the rules would cause significant financial burdens for medium-sized firms. Over 45,000 people have signed a petition on change.org calling for Brussels to stop destroying EU micro-businesses.