EFS Consulting
04/16/2024

What is the goal of product compliance?

We have already described the definition of product compliance in this EFS RegCom Academy article. Now, we will take a closer look at the aim and purpose of product compliance.

What is the aim of product compliance?

As a central aspect of product development and marketing, a company must ensure that a product fulfils all relevant regulations and current standards. By meeting the various requirements, a company can ensure that its product complies with the product safety of the country.

This product safety covers various areas. The primary concern is the health and protection of consumers. The consumer should be able to use the product without any major safety concerns. This also includes their environment. For vehicles, for example, particularly strict regulations apply in order to protect not only the driver, but also the passengers and any pedestrians.

This demand for safety has now also been extended to the environment. For example, there are more and more regulations banning chemicals that are harmful not only to humans, but also to animals and the environment.

How do the product labels support the aim?

By complying with the various regulations, the company can or must affix its own labelling to the product. By doing so, the company emphasises that the product is sufficiently safe and harmless for the consumer and the environment.

The labelling allows the national authority to quickly determine which requirements the product should meet. It can thus randomly check whether the product is really compliant and, in an emergency, can very easily contact the responsible company, which must also be recognisable on the product.

Can companies also benefit from this?

Ensuring product safety and fulfilling product compliance requirements are crucial for the government to protect the health and safety of consumers. However, companies can also benefit from compliance.

More careful product design and subsequent product testing minimises potential risks when using the product. This prevents legal consequences and financial losses for the company. Non-compliance can result not only in high fines, but also considerable reputational damage.

In addition, customer confidence is also strengthened. The customer gets the feeling that they are receiving a safe product and that they can contact the company behind it at any time in the event of problems. If the product also fulfils voluntary standards, for example for the environment, this can even appeal to a separate customer segment.

What does this mean in a nutshell?

Product compliance is a comprehensive field that ensures consumer and environmental production and gives authorities the possibility to quickly and easily verify this. Companies, however, can also minimize risks and legal repercussions, while at the same time foster customer trust. Moreover, meeting voluntary standards can attract environmentally conscious consumers, highlighting the dual benefit of compliance for both regulatory adherence and market competitiveness.

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