Efforts are being made to curb free-riding in the producer responsibility scheme through active collaboration and effective communication
Free-riding is a growing problem in the packaging producer responsibility scheme. The ELY Centre monitors the scheme’s implementation and focuses on communication.
The majority of Finnish operators handle their packaging producer responsibility as required. However, there are also those who still have room for improvement. According to the ELY Centre’s estimate, about 15 per cent of companies in Finland are free-riders. E-commerce increases this figure, but there are also thousands of Finnish operators involved.
The number of free-riders is partly explained by the fact that not all companies are aware of changes to the law that came into force at the beginning of 2024. Ignorance is the main reason companies fail to fulfil their packaging producer responsibility obligations, especially smaller companies. The system is complicated, so it is understandable that it is sometimes difficult for companies to understand who should handle producer responsibility obligations. That’s why the ELY Centre actively shares information in plain language through bodies such as industry associations and business advisors.
We monitor the implementation of the producer responsibility scheme and contact producers that have not yet got a system in place. We send them reminders, urging them to take care of their producer responsibility. These reminders also explain the fines that may result from companies failing to meet their obligations. Having received a reminder, companies can still submit a claim to determine whether they are affected by producer responsibility. Fines are only imposed after a reminder has been sent and the producer’s claim has been heard. The fine for neglecting producer responsibility is one per cent of the company’s turnover for the previous fiscal year, with a minimum fine of 500 euros and a maximum fine of 500,000 euros.
You can find a whistleblowing form on our website to anonymously notify authorities of companies that are not in compliance with producer responsibility obligations. The channel helps support companies that want to ensure they meet their responsibilities but notice that subcontractors or other partners have not fulfilled their producer responsibility obligations. It also helps us identify deficiencies. Companies can also directly inform their partners that they are required to comply with producer responsibility.
A particularly challenging area from the perspective of producer responsibility for packaging is e-commerce, by which goods are imported to Finland or exported from Finland. Online stores that package their products often do not understand that they are affected by producer responsibility. However, Finnish authorities are not able to monitor activities outside Finland. We can send reminders to foreign online sellers and request assistance from the authorities in the country in which they operate if necessary. While we can offer advice to Finnish online sellers, we cannot monitor whether customers or suppliers take care of their responsibilities in the destination/origin country.
Finland has established a producer responsibility cooperation network with the Nordic countries and Estonia, which is led by Finland. A working group has also been established for e-commerce, with one of the goals being to catch free-riders. The cooperation has started positively, and it is great that producer responsibility is now a point of international interest. We want to undertake further discussions on how the implementation of EU legislation can be better monitored.
Milla Kolehmainen, Senior Inspector, Pirkanmaa ELY Centre