European Product Act Set To Reshape EU Product Compliance And E-Commerce Oversight

Dr Steven Brennan
Dr Steven Brennan
4 min readAI-drafted, expert reviewed
Product compliance inspection in a modern warehouse

Key takeaway

What This Development Means

The European Commission is preparing a European Product Act package for the third quarter of 2026. The initiative could revise product standardisation, the New Legislative Framework and market surveillance rules while expanding digital product information and scrutiny of e-commerce imports.

What Is The European Product Act?

The European Product Act is a package of proposed EU legislative reforms covering product standardisation, market surveillance and the New Legislative Framework. Its objective is to modernise product regulation for the digital economy, strengthen enforcement against unsafe products and support circular economy objectives.

How Will The European Product Act Affect Manufacturers?

Manufacturers may face new requirements relating to digital product information, compliance documentation, traceability and sustainability reporting. The reforms could also increase scrutiny of imported products and strengthen enforcement across online sales channels, creating a more consistent regulatory environment throughout the EU single market.

Source basis: European Parliamentary Research Service, European Product Act Briefing (2026)

The European Commission is preparing a landmark European Product Act package that could significantly reshape product compliance, market surveillance and standardisation across the European Union.

Scheduled for adoption in the third quarter of 2026, the initiative combines reviews of the Standardisation Regulation, the New Legislative Framework (NLF) and the Market Surveillance Regulation to address digitalisation, circular economy objectives and the growing influx of e-commerce imports into the EU.

The proposed reforms are particularly relevant for manufacturers, importers, distributors, online marketplaces, conformity assessment bodies and compliance professionals navigating increasingly complex regulatory requirements.

European Product Act Targets Product Safety And Market Surveillance

A major driver behind the European Product Act is the rapid growth of direct-to-consumer e-commerce imports. According to European Commission figures cited in the briefing, 4.6 billion low-value consignments entered the EU in 2024, rising to an estimated 5.8 billion shipments in 2025.

E-commerce imports now account for approximately 97% of all customs declarations. At the same time, product safety concerns are mounting.

The EU's Safety Gate system recorded 4,671 alerts for dangerous non-food products in 2025, representing a 13% increase from 2024 and a 121% increase compared with 2022. Cosmetics accounted for 36% of alerts, followed by toys at 16% and electrical equipment at 11%.

The Commission is therefore examining stronger market surveillance measures, including enhanced responsibilities for online marketplaces and the possible creation of an EU-level market surveillance authority.

Digital Product Passport Expected To Play Central Role

One of the most significant elements of the European Product Act is likely to be the expansion of the Digital Product Passport (DPP) framework.

The DPP functions as a digital identity record for products, providing information on compliance, sustainability, traceability and lifecycle performance. The concept was introduced through the Ecodesign for Sustainable Products Regulation and has since been incorporated into legislation covering batteries, construction products and toy safety.

Industrial batteries, electric vehicle batteries and light means of transport batteries will become the first product categories required to carry a DPP from 18 February 2027.

The Commission is also considering how digitalisation can support circular economy objectives, particularly where products are repaired, refurbished or recycled after their initial placement on the market.

Standardisation Reform And Industry Concerns

The European Product Act also seeks to accelerate the development of harmonised standards. The Commission is exploring broader use of common specifications when standardisation bodies cannot deliver standards quickly enough.

While industry groups support faster standard-setting processes, many have expressed concerns that expanding Commission powers could undermine the established industry-led standardisation model.

Recent political agreements indicate that common specifications would only be used as a measure of last resort and would be subject to transparency requirements and time limitations.

Implications For The Chemicals And Manufacturing Sectors

For companies across the chemicals value chain, the European Product Act could influence compliance obligations, product traceability systems, digital reporting requirements and market access procedures.

Businesses placing products on the EU market may need to prepare for expanded digital product information requirements, stronger enforcement mechanisms and closer scrutiny of imported products. Organisations involved in sustainability, product stewardship, circular economy initiatives and regulatory affairs should closely monitor the Commission's proposals as they emerge during 2026.

Companies should begin reviewing their digital product data capabilities and supply chain traceability systems now to prepare for future Digital Product Passport and market surveillance requirements.

Summary

The European Product Act represents one of the EU's most significant product policy reforms in recent years. By modernising standardisation, strengthening market surveillance and expanding digital product information tools, the initiative aims to improve product safety, support sustainability goals and create a more level playing field across the single market.

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