The EU forced labour regulation bans non-compliant products

The European Union approved the Forced Labour Regulation (FLR) on November 19, 2024, and it came into effect on December 13, 2024. This new regulation prohibits the sale, placement, or export of products made with forced labor in the EU market. Starting on 14 December 2027, businesses have three years to adjust and meet these requirements, aiming to change global supply chains.
The EUFLR applies to all products—including components—sold, imported, or exported in the EU. This includes online sales and covers every industry, without value thresholds or geographic exceptions. The regulation defines forced labour using the International Labour Organisation’s (ILO) Forced Labour Convention, covering abuses such as debt bondage, coercion, and excessive overtime
Companies operating in or with the EU must:
National authorities and the European Commission will investigate suspected violations using a risk-based approach, prioritising cases based on severity, product volume, and the share of forced labour in the product If a violation is confirmed, authorities can:
Penalties for non-compliance are determined by national law and must be effective, proportionate, and dissuasive. Consequences include product bans, financial penalties, and reputational damage.
Unlike similar regulations in other jurisdictions, the EUFLR bans re-exporting non-compliant items to third countries. This ensures that products made with forced labor aren't sent to other areas. The regulation applies to all products, nations, and industries, setting a new global benchmark for ethical trade and supply chain transparency.
Companies must act now to ensure compliance by:
Failure to comply will result in severe operational and financial consequences
The EUFLR is a decisive step in addressing forced labour, affecting millions globally. Factlines supports businesses in navigating these new requirements, offering tools and expertise for effective supply chain due diligence and risk management.
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