Question

In: Operations Management

A movement within the European Union requires that a business take back its products at the...

A movement within the European Union requires that a business take back its products at the end of their useful life. Can you learn the details of such laws? Discuss whether or not you believe such a law could be passed in the United States. Should the United States have similar laws?

Solutions

Expert Solution

There is a movement across the different economies in the European nation that producers recall the product after the useful life of the product. Broadly, this added responsibility transferred to the producers are known as extended producer responsibility (EPR) that involves producers and manufacturers to recall the products after the useful life and recycle it. The movement is growing fast as it transfers the burden of recycling and waste management from the government bodies to the industry. Finally, the cost of recycling of the product is already reflected in the price of the products. So, there is a rise in price, but it becomes the responsibility of the producers to manage the waste after the useful life.
Regarding laws related to the EPR, it is the packaging ordinance, 1991 in the country of Germany that requires the firms to recall and recycle the packaging waste so that burden of the local government is shared by the industry. On a similar note, a law is passed in the country of France, where the recycle of the products and wastes are done by the jointly by the government and industry and they share the cost. Such regulations in the Germany and France is being endorsed by the European Union.
In the USA, such laws were tried to be passed in the past where the EPR will be brought into the effect, but it could not be passed. In 1992, EPR was introduced for packaging materials as part of RCRA, but could not be passed. But, in the future, the scenario can change and the US lawmakers can take a clue from the European Union and push for the laws that contributes towards the environmental care. Therefore the USA can have the similar laws in the coming future.


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