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Who Holds Responsibility for the Digital Product Passport, and Who Pays?

  • madslinjen
  • Sep 6
  • 4 min read


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As the EU rolls out the Ecodesign for Sustainable Products Regulation (ESPR) and mandates Digital Product Passports (DPPs) for a growing number of sectors, a pressing question echoes across boardrooms:


Who in the value chain is responsible for generating the DPP — and who should bear the cost?


From manufacturers in Germany, to suppliers in Taiwan, to distributors in Norway, there is still widespread confusion. Let’s unpack the EU’s position and the practical implications for businesses.



The Legal Anchor: ESPR and the “Economic Operator”

Under the ESPR, the responsibility for ensuring that a DPP exists and is compliant lies with the “economic operator” placing the product on the EU market. This means:

  • Manufacturers are the default responsible parties when they sell directly to the EU market.

  • Importers become responsible when the manufacturer is outside the EU.

  • Distributors or retailers who sell under their own brand name or trademark are considered manufacturers in the eyes of EU law, and must take on full responsibility.


This legal framing ensures that no product can legally enter the EU market without a valid DPP, regardless of whether it originates in Germany, Norway, or Taiwan.



The Manufacturer’s Burden

Manufacturers are the primary actors tasked with creating, compiling, and maintaining DPPs. This involves:

  • Collecting accurate data from suppliers on materials, energy use, repairability, and recyclability.

  • Ensuring traceability throughout the value chain.

  • Using secure systems (e.g., QR codes, blockchain identifiers) to make DPPs accessible to regulators, customers, and recyclers.


For most industries, this will mean significant investment in IT systems, compliance teams, and data integration tools. The EU does not prescribe how to build the DPP, only that it must be accurate, accessible, and updated.



The Role of Importers and Distributors

If the manufacturer is outside the EU, the importer is responsible for compliance. This includes ensuring the product carries a valid DPP before entering the EU market.

Similarly, distributors or retailers that rebrand imported products under their own name are treated as manufacturers. In these cases, they must create and pay for the DPP, even if the original producer already made one for another market.

This mechanism closes loopholes and ensures that liability cannot be outsourced beyond EU borders.



What About Suppliers?

Suppliers of raw materials or components, such as a chip manufacturer in Taiwan, are not directly responsible for the DPP. However, they must provide accurate, granular data to their downstream partners. Without this, the manufacturer cannot build a compliant DPP.

In practice, this will push suppliers worldwide to standardize data delivery, or risk losing contracts with EU-based manufacturers.



Who Pays the Cost?

The EU has deliberately avoided prescribing who must bear the financial burden. Instead, costs are determined by commercial negotiation within the value chain.

In practice, this means:

  • Manufacturers will often shoulder the largest share of cost, as they need to build and maintain the infrastructure.

  • Importers and distributors may bear costs when assuming responsibility (e.g., own-branding).

  • Suppliers will not pay for DPP creation but will need to absorb the cost of providing standardized data.

  • Service providers, like Protag, offer solutions that reduce compliance costs, but are contracted by manufacturers or importers.


The EU’s focus is compliance, not cost distribution. Companies must therefore develop commercial strategies to reallocate expenses, whether through supplier agreements, pricing adjustments, or shared digital platforms.



Market Enforcement

Market surveillance authorities in EU member states will check whether products carry compliant DPPs. If not, products risk being blocked from entry, withdrawn from shelves, or fined.

In cases where a product enters the EU without a clear responsible manufacturer, the importer automatically assumes liability. This ensures that every product has a traceable compliance owner.



What This Means for Business

For European manufacturers, the message is clear:

  • You must be prepared to take the lead on DPP creation.

  • You cannot rely on distributors or suppliers to absorb the cost.

  • You will need robust digital solutions to manage the process cost-effectively.


For importers and distributors:

  • Expect additional due diligence obligations.

  • If you sell under your own brand, you are the manufacturer under EU law.


For suppliers outside the EU:

  • Be ready to provide standardized, verifiable data.

  • DPP readiness will become a competitive advantage in securing EU contracts.


Protag’s Perspective

At Protag, we see the DPP not just as a regulatory burden, but as an opportunity to create value:

  • Streamlining documentation to reduce costs.

  • Enhancing transparency to strengthen trust with customers.

  • Supporting sustainability by enabling true circularity.


Our platform helps manufacturers, importers, and distributors generate compliant DPPs automatically, turning what could be a costly challenge into a strategic advantage.



Conclusion: Responsibility Follows the Brand

In summary, the legal responsibility for generating a DPP lies with the entity placing the product on the EU market under its own brand or trademark. In most cases, that will be the manufacturer. But if the manufacturer is outside the EU, or if a distributor rebrands the product, the responsibility — and cost — shifts accordingly.

Ultimately, every actor in the chain has a role to play: suppliers must provide data, manufacturers must compile it, and importers/distributors must verify compliance. The EU leaves cost-sharing to the market — but makes compliance non-negotiable.


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