French Anti-Waste (AGEC) - Labeling Decree

Overview Summary 

The French Anti-Waste (AGEC) Law encompasses a wide range of requirements and obligations, spanning from broad economy-wide waste-reduction and management targets to more specific requirements, such as the prohibition on destruction of unsold products.

Decree 2022-748 sets forth the requirements for one core pillar of the AGEC Law –  disclosure of information to consumers about the environmental qualities of products placed on the French market. The product types covered by the labeling law are numerous, capturing a subset of the many products that are already separately subject to EPR obligations in France.  This includes textiles, toys, sporting goods, garden products, electric and electronic equipment, and product packaging, among many others. For a complete list, see the official guidance materials linked below.

For companies that meet the law’s applicability criteria, it is mandatory to make accessible to consumers a series of specific information disclosures about each product at the time of sale and online (such as via a QR code that directs to a website).

Information disclosure requirements differ by product type. Using the example of textile clothing products, required disclosures as stated in the law include:

• Recycled Content (percent included in product by weight)

• Recyclability (ability for product to be recycled based on a series of criteria)

• Traceability (must show country where each key step in the production process occurred for each material, including weaving, dying, and assembly)

• Microplastics (must include statement if more than 50 percent of the product is composed of synthetic materials)

• Hazardous substances (must disclose the presence of listed substances when a threshold concentration level is met)

Additional disclosure obligations will apply for different product types, and separate disclosures are required for every product, even when bundled together. For example, separate information disclosures will be needed for both a clothing item and the primary packaging in which it is sold.

Compliance Timeline

Decree 2022-748 has been effective since 1 January 2023  for the largest covered companies (Group 1 companies), with a limited “sell through” period expiring in March 2023.

The law includes several phase-in extensions for smaller companies (as well as some product types), with Group 2 companies required to comply from 1 January 2024 and Group 3 companies from 1 January 2025. 

Entities which do not meet these criteria are not obligated to comply with Decree 2022-748.

Applicability

Decree 2022-748 applies to “producers, importers, or other marketers” of products which meet both of the following criteria. Importantly, this can include non-French companies that sell and deliver into France via online channels:

Annual Turnover for Covered ProductsTotal Covered Products Placed on French Market AnnuallyGroup 1 (1 Jan. 2023)EUR 50 M25,000Group 2 (1 Jan. 2024)EUR 20 M10,000Group 3 (1 Jan. 2025)EUR 10 M10,000

Turnover is calculated for the prior financial year of the company,  accounting for revenues from all covered products sold into France on a cumulative basis. This means turnover of EUR 40 M in clothing and EUR 15 M in electronics into France would be combined as EUR 55 M in turnover.  Likewise, total products placed on the French market is calculated based on cumulative covered units, regardless of category. 

Current Status and Road Ahead

Companies covered by the requirements of Decree 2022-748 are currently working to come into compliance or preparing for compliance in 2024 and 2025. This process is proving to be challenging for many companies, who must not only ensure accurate collection of product data, but accessible display of such data for consumers for every individual product. 

Although guidance has been issued on certain ambiguities in the law (see below), many questions still remain unanswered, such as how recyclability levels should be calculated and displayed for different product categories. It is expected that official instructions will be issued on these and other topics in the near future.

Additional Resources

Official Decree 2022-748 Text

2023 French Ministry of Ecology Guidance (English Version)

Penalties

Failure to comply with the requirements of Decree 2022-748 are punishable by an administrative fine which may not exceed EUR 15,000.  While unlikely to be exercised in the following way, enforcement authority is potentially expansive, as separate breaches can be triggered for each non-compliant product. 

Additionally, the existing enforcement scheme for unfair commercial practices applies for misleading communications, meaning that penalties of up to 10 percent of annual turnover may be levied under French law. Article L. 132-2 of the Consumer Code.

Discussion of Legislation

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