Refurbished
11
Oct
2024
1
min read

French authorities: further tests highlight compliance issues in refurbished smartphone and tablet market

The refurbished electronics market in France, including smartphones and tablets, is growing rapidly due to its affordability and lower environmental impact. To regulate this expanding market, new laws were introduced in early 2022, defining the term “refurbished” and ensuring that these products undergo functionality tests to guarantee their usability. Recently The DGCCRF (France’s Directorate-General for Competition, Consumer Affairs, and Fraud Prevention) investigated compliance with these new rules. And the outcome is not really positive.

Investigation findings on refurbished electronics

The DGCCRF’s 2022 investigation targeted 131 establishments, including e-commerce platforms, second-hand and specialized telephone shops, and large retail chains. The focus was on smartphones and tablets, which dominate the refurbished product market. The agency's agents assessed whether products marketed as refurbished had undergone proper functionality tests, as mandated by the regulations. They also evaluated whether consumers received accurate information regarding the condition and performance of these products.

New mainly visual tests show high non-compliance rates

Recent investigation revealed that nearly half of the shops and companies inspected had not adapted to the new regulations and were non-compliant. Many tests conducted were primarily visual, contrary to regulatory requirements that demand thorough checks of all functionalities to ensure product safety and reliability. In some cases, such as when replacing critical components like screens or batteries, the required tests were either incomplete or not performed at all. The DGCCRF highlighted a need for improved traceability of these tests from refurbishers to final distributors.

Inconsistent and misleading consumer information

Another major issue identified was inconsistent and confusing information provided to consumers about refurbished and used products. Descriptions like "like new," "refurbished," "grade A or AB," "very good condition," and "100% functional" varied widely across retailers, making it difficult for consumers to compare and understand the true state of the products. In some cases, products labeled as “certified” implied third-party verification when, in reality, they were only self-certified by the refurbisher or retailer.

DGCCRF’s actions and future plans

To address these issues, the DGCCRF took an educational approach, issuing warnings to around two-thirds of non-compliant businesses to remind them of the regulatory requirements. However, for more serious violations—such as misusing terms like "certified" or failing to display essential product details—the agency issued about twenty formal compliance orders. The DGCCRF emphasized that its monitoring efforts would continue, as the new regulations are essential for building consumer trust in the refurbished electronics market and promoting a sustainable economy.

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