Penalties for non-compliance with the PPWR – what are the consequences for businesses if they fail to make the necessary changes?

Penalties under the PPWR will be determined by EU Member States, rather than being set out in a single, common table of fines for the whole of the Union. However, the PPWR Regulation requires EU countries to establish penalties by 12 February 2027, with the penalties to be effective, proportionate and dissuasive. In the event of breaches of certain obligations, including those relating to excessive packaging, prohibited formats, reuse and refills, sanctions are to include administrative fines.

For businesses, the most important thing is that the risks associated with PPWR are not limited to the fine itself. Failure to make changes to packaging may also result in a sales ban, the need to withdraw the packaging from the market, the loss of a contract with a retail chain, problems with online marketplaces, an increase in product fees, a costly redesign and reputational damage.

Does the PPWR specify specific penalty amounts?

No. The PPWR does not contain a single EU-wide table of penalties setting out specific amounts for each infringement. The level and procedure for imposing sanctions are to be determined by individual Member States. This means that sanctions in Poland, Germany, France or the Czech Republic may differ in terms of the amount, procedure and enforcement practice.

However, the Regulation sets out a standard that Member States must comply with: penalties must be effective, proportionate and dissuasive. EU Member States are to lay down provisions on penalties and notify the European Commission of them by 12 February 2027.

The biggest mistake companies make is waiting for the national table of penalties. The PPWR already sets out the obligations, and the absence of a specific penalty rate does not mean there is no risk.

Since when have companies had to take the risk of PPWR sanctions into account?

The PPWR, or Regulation (EU) 2025/40, entered into force on 11 February 2025 and will, in principle, apply from 12 August 2026. The European Commission confirms that the Regulation covers all packaging and packaging waste, regardless of material or origin, and sets out requirements for the production, composition, reuse and recovery of packaging.

In practice, a distinction must be made between three levels of dates:

– 11 February 2025. — The PPWR entered into force as an EU legal act,
– 12 August 2026. — the general date from which most of the provisions apply,
– 12 February 2027. — the deadline by which Member States must adopt national provisions on penalties.

Some obligations have later deadlines, for example those relating to recyclability, recycled content or certain prohibited packaging formats. This does not alter the fact that companies should start preparing earlier, as changing packaging, suppliers, labels, documentation and the packaging process often takes months.

Which breaches of the PPWR are likely to pose the greatest risk?

The highest risk relates to those areas that are easily detected by the market, customers, competitors or regulatory authorities. Not every breach requires in-depth laboratory analysis. Sometimes it is enough to check the packaging, the label, the documentation or the method of packaging.

The areas posing the greatest risk are:

– the packaging is not recyclable,
– the use of prohibited packaging formats from 2030,
– excessive empty space in e-commerce and transport packaging,
– failure to meet the required recycled content in plastic packaging,
– incorrect or misleading labelling on the packaging,
– lack of technical documentation,
– no confirmation of the material composition,
– failure to meet the requirements relating to substances of concern,
– failure to fulfil the obligations of a manufacturer, importer or distributor,
– cross-border sales without analysing local EPR schemes.

In the case of high-volume packaging, even a minor design error can quickly turn into a major financial problem.

Non-recyclable packaging – what might the consequences be?

If packaging is not recyclable, this can lead to several consequences. The first is formal non-compliance with the PPWR. The second is the risk of higher costs under EPR schemes and product charges. The third is a market-related issue: retail chains, B2B customers and marketplaces may require suppliers to confirm that their packaging complies with the regulations.

The European Commission points out that the PPWR is intended to make packaging more recyclable, reduce waste and support the transition to a circular economy.

Non-recyclable packaging is no longer just a poor environmental choice. Under the PPWR, it poses a risk in terms of compliance, costs and market access.

Companies using difficult-to-handle materials, laminates, coatings, full sleeves, dark plastics, permanent adhesives or complex structures should carry out an analysis multi-material packaging and to check whether their current solutions are likely to meet the criteria for recyclability.

PPWR sanctions are not just a fine

A fine is the most obvious penalty, but in practice, a business may also face other consequences. Non-compliant packaging may require correction, recall, re-labelling, the detention of a batch, repackaging of products or a change of supplier.

Legal analyses of the PPWR indicate that the possible consequences of non-compliance include, amongst other things, financial penalties, a ban on placing non-compliant packaging on the market, mandatory corrective measures, withdrawal or recall, as well as reputational consequences.

For the company, this translates into actual operating costs:

– the storage of unsaleable products,
– repackaging of goods,
– reprinting labels,
– recycling of packaging,
– testing of the new material,
– amendment to the documentation,
– renegotiation with the supplier,
– delays in deliveries,
– missing out on a promotion or a sales season.

In many cases, the cost of rectifying the error will be higher than the administrative fine itself.

New product fees – why might the PPWR increase costs?

The PPWR is part of a broader trend towards extended producer responsibility, or EPR/ROP. Eco-modulation – that is, differentiating costs according to how packaging affects recycling, recovery and waste management – will become increasingly important.

In practice, packaging that is difficult to recycle, excessive, made of multiple materials or lacking an adequate proportion of recycled content may become cost-inefficient even if it has not yet been formally withdrawn from the market. Industry analyses indicate that the PPWR reinforces the trend towards linking EPR fees to recyclability, recycled content and packaging design.

For a business, this means that non-compliant or poorly designed packaging can give rise to two types of costs:

– penalty cost, if it contravenes legal requirements,
– systemic cost, if it is subject to higher charges or a lower classification under the EPR scheme.

In Poland, this topic needs to be considered in conjunction with BDO, reporting and product fees. A good starting point is an analysis BDO packaging and environmental audit, which allows you to check whether the packaging details are consistent with the company’s documentation.

Penalties for PPWR and e-commerce

E-commerce will be one of the sectors particularly vulnerable to PPWR risks. Online shops use cardboard boxes, envelopes, plastic film, tape, labels, packing materials and returnable packaging. Every parcel is visible to the customer, the courier, the marketplace and, potentially, the regulatory authority.

Risks to e-commerce include:

– too much empty space in the parcel,
– excessive use of fillers,
– no information on the weight of the packaging,
– lack of documentation from suppliers,
– incorrect classification of materials,
– no settlements in BDO or foreign systems,
– problems with sales to Germany, France, the Czech Republic or other EU countries,
– a discrepancy between the actual packaging and the environmental claims.

Online shops should combine PPWR analysis with e-commerce audit and find out how to account for Packaging in e-commerce: BDO and LUCID. When selling to Germany, it is particularly important that LUCID audit, as national EPR schemes continue to operate in parallel with the PPWR.

Penalties for PPWR, importers and own-brand products

Importers and private-label owners should not assume that responsibility for packaging always lies with the foreign supplier. If a company places a packaged product on the EU market, it may be regarded as the entity responsible for fulfilling certain obligations.

The greatest risks facing importers are:

– no information on the contents of the pack,
– no material specification,
– no confirmation of recycled content,
– incorrect labelling,
– packaging designed in accordance with non-EU standards,
– lack of compatibility with EPR systems in the countries where the products are sold,
– issues with a marketplace or retail chain requiring a declaration of conformity.

In the case of imports, the purchase invoice for the product alone is not sufficient. The company should have technical details regarding the packaging, not just the product itself.

If a company sells its products in several EU countries, it is worth making use of compliance with packaging obligations in EU markets, to check PPWR, EPR, national registrations and reporting obligations.

A lack of documentation can be just as dangerous as poor packaging

Documentation will be of key importance under the PPWR. A company should be able to demonstrate the composition of the packaging, the material, the weight, recyclability, the recycled content, the compliance of the labelling and any justification for its protective or technical function.

A lack of documentation is a problem even if the packaging is actually in good condition. A regulatory body, B2B customer or marketplace cannot simply rely on a statement such as „our supplier claims it is compliant”. A verifiable basis will be required.

The documentation should include, amongst other things:

– bill of materials,
– the weight of the packaging and components,
– suppliers’ declarations,
– information on recycled material,
– an assessment of recyclability,
– justification for minimising packaging,
– information on labelling,
– data for BDO and foreign systems,
– the procedure for updating your details when changing supplier.

A good tool for mitigating risk is PPWR audit, which enables packaging to be assessed in terms of its design, composition, recyclability, labelling, and environmental and legal compliance.

The risk of market lock-in – what are large companies afraid of?

For many businesses, a sales ban may be more severe than an administrative penalty. If the packaging does not meet the requirements of the PPWR, the company may face difficulties in supplying the product to retail chains, wholesalers, online marketplaces, industrial customers or foreign distributors.

The risk of a market freeze may arise in several situations:

– the retail chain requires documents confirming the compliance of the packaging,
– the marketplace requires information on EPR and packaging,
– a B2B customer requires a declaration of recyclability,
– the foreign distributor requires registration or an EPR number,
– the market supervisory authority has raised concerns about the packaging,
– the supplier is unable to confirm the material composition.

The most costly breach of PPWR rules is not always a financial penalty. Sometimes it is the loss of a sales channel at a crucial point in the season.

Which companies are most at risk of PPWR sanctions?

The greatest risk applies to companies that place large volumes of packaged products on the market or operate in several EU countries.

The following are particularly at risk:

– food and drink manufacturers,
– manufacturers of cosmetics, household cleaning products and supplements,
– importers of products from outside the EU,
– private-label owners,
– e-commerce and marketplace sellers,
– companies using multi-material packaging,
– organisations that use large quantities of plastic,
– retail chains, wholesalers and distributors,
– HoReCa and hospitality businesses,
– packaging manufacturers and packagers.

A small business should not assume that the PPWR does not apply to it. The Regulation covers packaging placed on the EU market, regardless of its material or origin.

PPWR risk matrix for businesses

Risk area	Example of a breach	A possible consequence
Recyclability	The packaging does not meet the ‘Design for Recycling’ criteria	Import ban, redesign costs, higher fees
Recycled material	The required PCR content in the plastic is missing	Failure to meet the 2030/2040 deadlines, loss of contracts
Empty space	Oversized e-commerce parcels	The risk of sanctions, the cost of changing the packaging
Prohibited formats	Hotel-sized portions, fruit wrappers, HoReCa sachets	The format will be phased out from 2030.
Signage	Misleading claims regarding recycling or composition	Administrative and reputational risk
Documentation	No specifications or data from the supplier	Inability to demonstrate compliance
EPR/BDO	Inconsistent data on packaging weights	Fees, adjustments, audit risk
Export sales	No registration or data in national systems	Sales block, marketplace issues

How can a company protect itself against PPWR sanctions?

Protection against sanctions does not simply involve reading the regulation once. A company should implement a packaging management system.

1. Carry out an inventory of packaging

The list should include unit, bulk, transport, dispatch and promotional packaging. For each type of packaging, data must be collected on the material, weight, supplier, sales market and function.

2. Assess the PPWR risk

First, we need to identify high-risk packaging: multi-material, plastic, excessive, difficult to recycle, sold abroad, bearing environmental claims, or used in large volumes.

3. Collect documents from suppliers

Suppliers should provide material specifications, data on recycled content, declarations, information on substances of concern and certificates of conformity.

4. Check BDO, EPR and overseas sales

The PPWR does not replace national obligations. The company must still analyse BDO in Poland, LUCID in Germany and other EPR schemes in the countries where it sells its products.

5. Draw up a plan for change

Not every package needs to be replaced immediately. However, it is important to know which ones require a change to their labelling, which ones require updated documentation, which ones need to be redesigned, and which ones need to be withdrawn by a specific date.

6. Define responsibilities within the company

The PPWR should not be caught between the procurement, marketing and compliance departments. Someone must be responsible for the data, documentation, suppliers, changes to packaging and updating the requirements.

7. Carry out an audit

An audit enables risks to be identified before a regulatory body, a client or a marketplace does so. In practice, it is worth combining PPWR audit z comprehensive environmental consultancy, in order to translate legal requirements into a practical action plan.

The most common mistakes made by companies before sanctions are imposed

The first mistake is to wait for a Polish sanctions law. The PPWR will be applied directly, whilst national legislation on penalties is intended solely to set out the enforcement mechanisms and the level of sanctions.

The second mistake is to analyse only the product and not the packaging. Under the PPWR, packaging becomes a separate area of compliance.

The third mistake is a lack of information about shipping packaging. This applies particularly to e-commerce and fulfilment.

The fourth mistake is relying on a supplier’s general claims. The phrase „eco-friendly packaging” is not a certificate of conformity.

The fifth mistake is failing to have a plan for overseas sales. A company selling in several countries may be in breach of its EPR obligations even if it correctly fulfils some of those obligations in Poland.

The sixth mistake is putting off a redesign. Changing the packaging requires quality testing, logistics, graphic design, procurement and customer approval.

FAQ - Frequently asked questions

Will there be penalties for PPWR?

Yes. EU Member States are to lay down rules on penalties for breaches of the PPWR by 12 February 2027. The penalties must be effective, proportionate and dissuasive.

Does the PPWR specify specific penalty amounts?

No. The PPWR does not contain a standardised table of amounts applicable across the EU. Specific penalties will be set out in the national legislation of each Member State.

Could the fact that packaging is not recyclable prevent sales?

Yes, it may lead to market and regulatory issues. The PPWR tightens the requirements regarding recyclability, and non-compliant packaging may need to be amended, withdrawn or replaced with an alternative solution.

Do the PPWR sanctions apply only to packaging manufacturers?

No. The risk also applies to importers, distributors, brand owners, e-commerce businesses, manufacturers of packaged products and companies selling on EU markets. The PPWR covers all packaging and packaging waste, regardless of material or origin.

Will product fees increase as a result of the PPWR?

The PPWR reinforces the approach of eco-modulation of EPR fees, i.e. linking costs to packaging characteristics such as recyclability, recycled content and impact on the waste management system. However, the precise mechanisms and rates depend on national legislation and producer responsibility schemes.

How can you minimise the risk of penalties under the PPWR?

It is best to start with a packaging audit: check the materials, weights, recyclability, recycled content, labelling, documentation, BDO, EPR and exports. An audit enables you to identify risks before an inspection takes place, sales are blocked or a costly packaging recall is required.

Protect your business from sanctions

Penalties for non-compliance with the PPWR are just one aspect of the risk. For many companies, sales suspensions, the loss of contracts, costly product repackaging, documentation amendments and higher packaging charges may prove to be a greater threat.

If you want to check which packaging items in your company may put you at risk of penalties, use PPWR audit or Eko-Pro environmental consultancy. Go to the tab Contact Eko-Pro and describe your packaging, sales model and the markets in which the company operates.