The EU Forced Labour Regulation (FLR)

Dear clients, 

dear interested readers,

With our newest client information we would like to inform you about the Forced Labour Regulation (EU) 2024/3015 (for short: FLR), which is due to apply on 14 December 2027. Although the Regulation is not due to be applicable in the immediate future, we believe it is worth to already concern oneself with it. This is primarily because it applies to all types of products that are being placed on the EU market. To help you navigate the FLR, this client information outlines its key provisions and offers an initial assessment of its scope. 

We hope you gain new and useful insights as you read,

Your FRANSSEN NUSSER team

1. What is the FLR and when does it apply?

The Forced Labour Regulation (EU) 2024/3015 – also known as the ‘Forced Labour Regulation’ (FLR for short) – aims to combat the global use of forced labour (Article 1(1) FLR). To contribute to this, it establishes a mechanism for the Union market to prohibit the distribution or export of products manufactured using forced labour and to withdraw such products already on the Union market (Recital 15 FLR). To ensure compliance with this prohibition, the Regulation contains specific market surveillance provisions. Both the authorities of the Member States and the Commission are responsible for market surveillance. In principle, the FLR does not impose any direct obligations to act or exercise due diligence on businesses (see Art. 1(3) FLR; Theusinger/Flöer, RAW 2025, 158 (160)). However, it is linked to the fulfilment of due diligence obligations under other legal acts. 

The Regulation will apply to economic operators in the EU from 14 December 2027 (Article 39 FLR). As the FLR is a Regulation, it applies directly in every Member State without the need for transposition into national law.

2. What is the prohibition of products made with forced labour?

The core provision of the Regulation is the “prohibition of products made with forced labour” set out in Article 3 FLR. Specifically, the provision reads as follows:

‘Economic operators shall not place or make available on the Union market products that are made with forced labour, nor shall they export such products.’

Under Article 3 of the FLR, trading with a product is prohibited if the following conditions are met: 

• It applies to (1) products 
• (2) which were made with forced labour
• where (3) economic operators,
• (4) place or make them available on the EU market or export them

2.1. What is a product?

The FLR is based on a broad definition of a product. This definition covers all commercial goods of monetary value, regardless of the product group to which they belong. 

Article 2(6) of the FLR defines a product as ‘any item that can be valued in money and is capable, as such, of being the subject of commercial transactions, whether it is extracted, harvested, produced or manufactured’. The definition is thus based on a broad understanding of the term ‘product’, and in essence the FLR can apply to any commercial goods. This is also in line with the broad material scope of application of the FLR intended by the legislator, which is meant to cover ‘all products, of any type’ (Recital 18 FLR). The prohibition therefore applies to all physical commercial goods across all product categories. Since the definition is based on the broad concept of a ‘product’ it cannot be ruled out that not only physical objects but also all other physical products marketed as goods fall within the scope of the Regulation. This includes, for example, electricity, which is considered a good under European primary law (see ECJ, C-573/12, paras. 65, 67).

2.2. When was a product made using forced labour?

Forced labour within the meaning of the FLR is forced or compulsory labour as defined in Article 2 of ILO Convention No. 29 (hereinafter: ILO Convention) (Article 2(1) FLR). Article 2 ILO Convention defines what is meant by forced labour. According to it, this is ‘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. ‘Article 2(2) ILO Convention excludes certain activities from the definition of forced labour. These include, in particular, activities performed as a result of a conviction and under state supervision (Article 2(2)(c) ILO Convention). 

Various indicators can be used to determine whether forced labour has been used in a production process. These include:

(1) taking advantage of a vulnerable situation, (2) deception, for example regarding the location, nature and scope of the work and the wages paid, (3) restriction of freedom of movement, (4) isolation, (5) physical and sexual violence, (6) intimidation and threats, (7) withholding of identity documents, (8) withholding of wages, (9) debt bondage, (10) degrading working and living conditions, (11) excessive overtime and (12) the refusal to provide employment contracts (Theusinger/Flöer, RAW 2025, 158 (159)). 

The ban is intended to apply where forced labour has been used at any stage of the production of a product – or its components. This does not apply to the provision of transport services (Recital 18 of the FLR). 

2.3. Which economic operators are affected by the prohibition?

The prohibition applies to ‘economic operators’ and thus essentially to all businesses involved in the manufacture and trade of goods within the EU, including those offering goods from third countries via distance selling. The FLR applies to economic operators of all sizes without distinction. This means that small and medium-sized enterprises (SMEs) are not exempt from the Regulation. 

Article 2(9) FLR defines an ‘economic operator’ as ‘any natural or legal person or association of persons placing or making available products on the Union market or exporting products’. By linking the definition of economic operator to placing on the market, making available and exporting, it covers all activities involved in selling goods within the EU or exporting them from the EU. Article 4 FLR clarifies that products offered for sale by means of distance sale are also deemed to be “made available on the market” if the offer is targeted at end users in the EU. The aim of this is to ensure that the FLR also applies to the online sale of products in the EU from non-EU countries (Recital 22 of the FLR).

2.4. To which actions does the prohibition apply?

It is prohibited to ‘place on the market’, ‘make available’ or ‘export’ products made with forced labour. 

2.4.1. When does making available on the market take place?

‘Making available on the market’ means ‘any supply of a product for distribution, consumption or use on the Union market in the course of a commercial activity, whether in return for payment or free of charge (Article 2(4) FLR). This covers any offer of a product that could lead to its actual making available on the Union market. It presupposes an agreement on the transfer of rights to the product (Commission, Blue Guide to EU Product Rules 2022, p. 19). In accordance with Article 4, the FLR regulates a specific form of making available by means of distance sales. Accordingly, making available also occurs where products are offered for sale by means of distance selling and the offer is directed at end-users in the EU.

2.4.2. When is a product considered to have been placed on the market?

A product is considered to have been placed on the market when it is made available on the Union market for the first time (Article 2(5) FLR). In most cases, this is done by the manufacturer of the product, if they are established in the Union, or by their importer. Placing on the market generally occurs when a product is made available for the first time by the manufacturer or importer to a distributor or end-user (Commission, Blue Guide to EU Product Regulations 2022, p. 20). 

2.4.3. What is ‘exporting‘?

An export takes place when Union goods are taken out of the customs territory of the Union in accordance with Article 269 of Regulation (EU) No 952/2013 (Article 2(22) FLR). In the course of this, they are transferred to the ‘export procedure’. This refers in particular to export operations.

3. What are the obligations of economic operators under the FLR?

Apart from the market surveillance procedure specifically regulated in Articles 14 et seq. FLR, the Regulation does not, in principle, impose any direct obligations on economic operators. Rather, Article 1(3) FLR expressly clarifies that the FLR ‘does not create additional due diligence obligations for economic operators other than those already provided for in Union or national law’. However, this does not mean that businesses are not subject to any obligations in the context of the FLR. Such obligations arise, on the one hand, from the prohibition on trading in products made with forced labour, as laid down in Article 3 FLR, and, implicitly, from the provisions on the market surveillance procedure pursuant to Article 17 et seq. of the FLR. In particular, the FLR builds upon due diligence obligations arising from other legal acts. 

The flip side of the prohibition laid down in Article 3 FLR is the obligation to refrain from making available or exporting products made with forced labour. This means that economic operators must not place such products on the market in the first place. 

Under the FLR, companies are generally required to minimise the risk of forced labour in their supply chains. To this end, they must, in particular, comply with their existing due diligence obligations regarding forced labour. In accordance with Article 17(1) FLR, the competent authorities initiate the market surveillance procedure under the FLR by conducting a so-called ‘preliminary investigation’. In doing so, they investigate economic operators and product suppliers selected by them. These must provide the authority with information on the relevant measures ‘they have taken in order to identify, prevent, mitigate, bring to an end or remediate risks of forced labour in their operations and supply chains with respect to the products under assessment’. The Regulation therefore assumes that economic operators will take measures from the outset to minimise the risk of forced labour in their supply chains. A significant – though not exclusive – part of these measures is the fulfilment of existing due diligence obligations regarding forced labour and compliance with official guidelines for its prevention (see Art. 17(1) sentence 1(a) – (d) FLR). 

The recitals of the FLR list several legal acts under which companies are required to take measures to prevent forced labour in their supply chains (see recitals 8–10 of the FLR). These include the Conflict Minerals Regulation (EU) 2017/821, the Batteries Regulation (EU) 2023/1542 and the Deforestation Regulation (EU) 2023/1115. Forced labour is also relevant in the context of the transparency rules under the Sustainability Reporting Directive (EU) 2022/2464 (for further information, see Theusinger/Flöer, RAW 2025, 158 (159 ff.)). Compliance with existing legislation, guidelines and recommendations on forced labour can help to dispel a reasonable suspicion that there has been a breach of the prohibition on products manufactured using forced labour (Recital 45 FLR) and thus create a synergy effect. 

4. How is market surveillance carried out?

The FLR provides for a three-stage market surveillance or ‘investigation’ procedure’. The so-called ‘lead competent authorities’ responsible for market surveillance are either the European Commission, where the suspected forced labour takes place outside the EU territory, or the authorities of the Member States, where the suspected forced labour takes place within the Member States (Article 15 FLR). The three stages are as follows (see also Ruhnke, ZfPC 2025, 102): 

Stage 1: Preliminary Investigation (Art. 17 FLR) 

In preparation for the investigation to be carried out under Stage 2, a lead competent authority conducts a preliminary investigation. As part of this, it may request information from economic operators, associations and other persons who have provided information relating to forced labour (Recital 43 FLR). In particular, information should also be requested from the economic operators to be assessed under the FLR (Recital 45 FLR). 

On the basis of the information available to it and that which it has gathered, the lead competent authority assesses, using the procedure set out in Article 14(3) of the FLR, whether there are substantiated concerns to suspect a violation of the prohibition in Article 3 FLR (Article 17(3), (4) FLR). If it concludes that this is the case, it shall initiate an investigation in accordance with Article 18 FLR in respect of the products and economic operators concerned. 

Stage 2: Investigations (Art. 18 FLR)

If there is a substantiated concern of a violation of Article 3 FLR, the lead authority shall initiate an investigation in accordance with Article 18 FLR. It shall inform the economic operators concerned by the proceedings (Article 18(1)  FLR). They must provide the authority, at its request, with extensive information regarding their supply chain (Article 18(3) FLR). Furthermore, the authority may carry out control and verification measures, such as field inspections (Article 18(5), (6) and Article 19 FLR). 

Stage 3: Decision (Art. 20 FLR)

On the basis of the information it has gathered, a lead authority shall assess whether products have been marketed in violation of Article 3 FLR. If it is unable to establish such a violation, it shall discontinue the proceedings and inform the economic operators concerned (Article 20(3) FLR). If it finds that a breach has occurred, it shall issue a decision in accordance with Article 20(4) FLR, which shall include the following measures:

• Prohibition on the placing or making available or export of products
• Order to withdraw products from the market
• Order requiring the economic operators that have been subject to the investigation to dispose of the products concerned, or of parts thereof

In certain cases, the authority may, in the case of particularly critical products, refrain from withdrawing them from the market and instead order a strategic retention pending rectification by the economic operator (‘hold-and-release scheme’) (Art. 20(3) FLR; Theusinger/Flöer, RAW 2025, 158 (161)). The measures under Article 20(5) FLR may be imposed regardless of whether the undertaking concerned has acted culpably. 

5. What are the potential consequences of violating the FLR?

A violation of the FLR may result in administrative measures, sanctions – such as fines – and, in some cases, consequences under German regulations on unfair competition. 

Administrative measures may be imposed following a decision under Article 20(4) FLR (see Section 4, Stage 3). Furthermore, Member States are required to adopt provisions on sanctions in the event that an economic operator contravenes a decision under Article 20 of the FLR (Article 37(1) and (2) FLR). A breach of the prohibition in Article 3 FLR cannot in itself serve as a basis for sanctions; rather, there must be a decision pursuant to Article 20 FLR establishing that a breach has occurred. It is to be assumed that Germany will implement the sanction provision by enacting regulations on regulatory offences. Ultimately, it cannot be ruled out that the marketing ban laid down in Article 3 FLR for products manufactured using forced labour constitutes a rule of market conduct under Article 3a of the German Act Against Unfair Competition. Consequently, there is a risk that infringements of this rule may be relevant under competition law. 

6. Which sectors and products are particularly affected by the FLR?

The FLR applies to all sectors and product types. Furthermore, the prohibition set out in Article 3 FLR applies not only where a product itself has been made with forced labour, but also where its components have been made with it. Consequently, all products currently on the market potentially fall within the scope of the FLR. However, there are some products that are currently particularly at risk of forced labour occurring within their supply chains. 

In general, agricultural, raw material and industrial products sourced and manufactured at the beginning of the value chain are particularly at risk (ILO, Global Estimates of Modern Slavery: Forced Labour and Forced Marriage, 2022, p. 30 ff., available: here). Regionally, products from the Xinjiang region in China are particularly affected, but this also applies, for example, to products from the US, provided there is a possibility that they were manufactured using prison labour (Walk Free, Guardians and Offenders: Examining State-Imposed Forced Labour, available: here) (1). To ensure that there is no risk of forced labour in the supply chain, the first step is for economic operators to gain an overview of their supply chains and then determine whether they contain goods from regions or sectors particularly at risk of forced labour. A useful starting point for addressing forced labour in the supply chain is the ILO handbook ‘Hard to see, harder to count: Handbook on forced labour surveys’ (available: here).

7. Implementation recommendation

Although the FLR is not due to apply until 14 December 2027 – a date that is still some way off – it is a cross-cutting Regulation that is relevant to compliance for all economic operators active within the EU. Given its broad scope in terms of subject matter and operators covered, as well as the potential for sanctions, early and systematic preparation is recommended. 

As with other legislation governing supply chains, companies should assess their own supply chains for risks of forced labour. This will help identify measures that can be taken to mitigate such risks. 

 

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(1) Only in cases where such activities are not excluded from the definition of forced labour under Article 2(2)(c) of the ILO Convention.