The Packaging Act - what online retailers need to know about it

Packaging is an ongoing issue in online retail. Questions continue to arise as to which obligations arise from the Packaging Act (Packaging Act). The law is aimed at anyone who trades commercially and places packaging filled with goods on the German market for the first time. This also includes online retailers who ship their products directly to private end consumers. We give you an overview.

Sense of the VerpackG

The VerpackG aims to significantly increase recycling rates in the interests of sustainability, strengthen the concept of product responsibility and ensure fair competition. It is intended to ensure that sales packaging sent to private end consumers is disposed of and recycled in an environmentally friendly manner. To ensure compliance with the law, the Central Agency Packaging Register Foundation (ZSVR), which creates transparency and punishes violations.

Obligations for online retailers

1. registration obligation (§ 9 VerpackG)

Before packaging is placed on the market, it must be entered once in the "LUCID" of the ZSVR. The company data and the brands of the packaging used are stored. Without a valid registration number, subsequent licensing is impossible and the sale of packaging subject to system participation is prohibited.

2. licensing obligation (system participation, § 7 VerpackG)

All sales and secondary packaging - i.e. all packaging that typically accumulates as waste with private end consumers - must be licensed with an approved dual system. This also includes cushioning material, adhesive tape and fillers. Licensing ensures that the costs for collection and recycling are borne proportionately by the manufacturers. Many dual systems offer online calculators that retailers can use to estimate their annual packaging volume and easily calculate the license fee. There are also some service providers that offer simplified licensing services.

3. data reporting obligation (§ 10 VerpackG))

Parallel to system participation, the licensed quantities must be reported to the ZSVR once a year, usually at the beginning of the following year. This must include the type of material, the mass and the period of participation. The report is used to check whether recycling quotas are achieved and forms the basis for the declaration of completeness.

4. declaration of completeness (§ 11 VerpackG)

If a retailer reaches certain quantity thresholds per material group, a declaration of completeness must also be submitted to one of the dual systems. This confirms that all relevant packaging has been licensed and is subject to random checks.

Platform and fulfillment controls

Since July 2022, online marketplaces (e.g. Amazon, eBay) and fulfillment service providers have been obliged to check the registration and licensing of their retailers. Without proof, the sales function can be blocked to prevent unauthorized packaged goods from entering circulation.

What are the penalties for violations?

Anyone who places packaging on the market without registration or system participation risks fines of up to EUR 100,000. Non-participation in a dual system can result in fines of up to EUR 200,000 and warnings under competition law are also possible.

Summary

	Registration	Licensing
What?	Registration with the Central Office (LUCID)	Participation in a dual system
What for?	Official registration & transparency	Financing of disposal and recycling
Where?	Online portal LUCID	With a dual system (e.g. Green Dot)
Who?	Anyone who places packaging on the market	Anyone who uses packaging subject to system participation
Who?	Personal	In person (or via a service provider)
How much?	Free of charge	Costs depending on cost model and packaging quantity
Punishment of violations	Distribution ban, fine, warning letter	Distribution ban, fine, warning letter

The approach and background of the Packaging Act is correct and sensible. However, it means additional administrative work for retailers. Those who keep an eye on the aforementioned obligations can design their packaging processes in compliance with the law. Non-compliance with the VerpackG can result in severe penalties.