Many owners of smaller furniture businesses assume that a European regulation is primarily aimed at large manufacturers. This is not necessarily the case. The regulation on which the furniture digital product passport will be based primarily looks at what you place on the market and in which role you do so, and only secondarily at the size of your business.
Whether the obligation applies to your business therefore depends mainly on the product and your position in the supply chain, not on your workforce or annual turnover. A one-person business that places furniture on the EU market itself can fall under the same rules as a manufacturer with one hundred employees. A large company that only supplies components to another manufacturer may fall outside the direct scope.
Why company size is not the only criterion
The thinking behind the digital product passport is that information about a product must be available regardless of who manufactures it. This puts the focus on the product itself: does it fall within the product categories designated by the regulation, and who places it on the EU market for the first time. The latter is indicated in the regulation text with a specific term, which you can look up in our explanation of the terms used by the regulation.
Company size can play a role in how supervisory authorities treat a business, or in transition periods that are laid down in later delegated acts. At present, it has not yet been published whether separate provisions will apply to smaller enterprises. Once this is established, it will be added here.
What the regulation does lay down regarding scope
The regulation itself uses a list of product groups for which delegated acts are being drawn up. Furniture is listed as a designated group, but the precise definition — which products fall within and outside that scope — follows from those delegated acts. These also specify which data a passport must contain and from when.
Supervisory authorities assess a business on the same basis: do you place a product on the market that falls within the designated category, and in what role do you do so. An importer who places furniture from outside the EU on the European market for the first time is treated differently than a retailer who merely resells the same furniture within the EU.
When it is more likely to affect you
There are a few characteristics that are more common among businesses subject to the passport requirement. You design furniture or have it produced under your own brand. You import furniture from outside the EU and are thereby the first to place it on the European market. You supply projects or public procurement where a contracting authority already requests product information similar to what a passport would contain. None of these characteristics depend on the number of employees you have.
When it is less likely to apply
Conversely, a business that exclusively resells existing furniture from EU manufacturers without making any changes to it or placing it on the market under its own name finds itself in a different position than the manufacturer or importer itself. Here too, your role in the supply chain is decisive, not the size of the organisation. If you want to map this out for your own situation, the product scan provides a first indication in a few questions.
What you can do now, regardless of your company size
Even if it is not yet established whether and when the obligation applies to your products, it is worthwhile to map out now what information you record about your furniture and where it comes from. You will not have to redo this work once the delegated act appears. Frequently asked questions about who is responsible for what are clearly listed together on our page with answers to questions that other entrepreneurs also ask.
This assessment is general in nature and does not replace advice tailored to your own business. If you are unsure about your specific situation, consult a lawyer or the competent supervisory authority.
Would you like to make this concrete for your own business? Do the free quick-scan or start with creating a business account so you can continue immediately once the obligation becomes concrete.