No forced labour: New ban on products made with forced labour

The FLR applies to all products, including their components. This means that all sectors are affected by the FLR. The origin of the products and whether they are domestic or imported is not relevant.

The FLR applies to all economic operators across all sectors, regardless of their size or legal form –  it, therefore, also applies to micro, small and medium-sized enterprises (SMEs).

Products made with forced labour will be banned in the EU; the FLR prohibits such products from being placed or made available on the EU market, furthermore such products must not be exported. The FLR thus establishes a comprehensive marketing ban.

The decisive factor is whether forced labour was used in the manufacturing process of the products, i.e. "all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily" (Art. 2 No. 1 FLR in conjunction with Art. 2 of ILO-Convention No. 29). Forced labour can be used at any stage of the product’s extraction, harvest, production or manufacture, including in the working or processing related to a product at any stage of its supply chain (Art. 2 No. 7 FLR).

When assessing and investigating the likelihood of a violation, when initiating and conducting the preliminary phase of the investigations and when identifying the products and economic operators concerned, the authorities must follow a risk-based approach. This means that they must take into account, for example, the scale and severity of the suspected forced labour and the quantity of products involved. They must also use information on risk indicators (e.g. from ILO reports) and information available through the information channels to be implemented.

The administrative procedure itself takes place in three stages:

• First, a preliminary investigation is initiated to determine whether there is a substantiated concern of a violation. Here, the authority gives the economic operators and, where relevant, other product suppliers the opportunity to provide information within 30 working days on measures they have taken in order to identify, prevent, mitigate, bring to an end or remediate risks of forced labour. The authority may also request this information from other relevant stakeholders. This means that a substantiated concern can also be based on other available facts.
• If the authority determines that there is a substantiated concern, an investigation on the products and economic operators concerned is initiated. The authority has extensive powers for such investigation. For example, all relevant information can be requested (again with a short deadline) from the economic operators concerned or (on a voluntary basis) from any other relevant person. Under certain circumstances, field inspections can also be conducted. However, the latter is subject to strict requirements in case the forced labour risk is located outside the EU.
• A decision on the actual existence of a violation is made on the basis of all the information gathered during the investigations. It should be noted that the authority can also decide based on other available information if, for example, the economic operator does not provide the requested information or otherwise impedes the investigation.

If the authority determines that a product made with forced labour has been placed or made available on the market, or has been exported, it shall, without delay, adopt a decision with the following content:

• Prohibition on the placing or making available on the market, and on exporting the product;
• Order requiring the economic operators that have been subject to the investigation to withdraw products that have already been placed or made available on theEU market and have not yet reached the end users;
• Order requiring the economic operator that have been subject to the investigation to dispose of the products (or the concerned parts). However, in order to prevent disruptions to a supply chain of strategic or critical importance, the authority may instead order that the product concerned be withheld for a defined period of time at the expense of the economic operator. During this time, the economic operator has the possibility to eliminate the forced labour from the existing supply chain. In order to dispose of a product, it must be recycled or, if not possible, rendered inoperable; perishable products shall primarily be donated to charitable or public interest purposes.

The decision must contain the content specified in Art. 22 FLR and is either adopted by the EU Commission as an implementing act or, in case national authorities decide, recognized and enforced by other member states.

If an economic operator does not comply with the decision within the time limit, the authority itself enforces the decision and moreover imposes penalties on the economic operator. As usual, the form, amount and enforcement of the penalties are the responsibility of the member states.

The competent authority depends on the country in which the suspected forced labour took place:

• If the violation is suspected in an EU member state, the competent national authority of that member state acts as the lead competent authority.
• If the use of forced labour is suspected outside the EU, the EU Commission acts as the lead competent authority.

Products entering or leaving the EU market are also subject to controls and measures by the customs authorities. In future, they will have to be provided with additional information on certain product groups to better identify the products.

The FLR contains several provisions to promote the exchange of information and cooperation between the EU Commission and national market surveillance and customs authorities.

The ban applies from December 14, 2027.

However, the authorities must take action now, for example to set up information and communication systems.

In future, companies must ensure that they do not place or make available on the market, or export any products that have been made with forced labour.

The following steps can already be recommended to prepare in good time:

• Early compliance with the due diligence obligations regulated in other legal acts (e.g. LkSG or EUDR)
• Implementation of risk analyses on potential forced labour risks in the supply chains;
• Establishing and implementing documentation of measures to identify, prevent, mitigate and end forced labour risks.

In this context, the guidelines provided for in the FLR, which still have to be issued, will be important. By June 14, 2026, the EU Commission shall provide, inter alia, guidelines for economic operators on due diligence in relation to forced labour and on best practices for bringing to an end and remediating forced labour, as well as information on risk indicators of forced labour.

For SMEs in particular, it is important to keep an eye on the measures adopted by the EU Commission to support economic operators. It has already been established that contact points should be available for SMEs to provide information on matters relating to the FLR.

We are happy to support you with your challenges in connection with supply chain due diligence and forced labour.