The EU’s new Forced Labor Regulation (the “EUFLR” or “the Regulation”) was published in the EU’s Official Journal on December 12, 2024.[1] Under the new Regulation, products that have been created through the use of forced labor will no longer be allowed to be introduced into the EU market or permitted to be exported from it.[2] Although the EUFLR will not come into effect until December 2027, businesses are wise to begin taking steps to ensure that they are compliant well before that time.[3] The Regulation introduces substantial new compliance obligations on all businesses operating in the EU market (or exporting from it), which may require a significant effort from companies that are affected to ensure conformity.
In this post, we offer an overview of the relevant compliance obligations that businesses impacted by the EUFLR need to be aware of. This includes, but is not limited to, implied due diligence obligations that may not be readily apparent and that many companies may not have encountered before.
Who does the EUFLR apply to?
The EUFLR presents challenges to companies that are trying to comply because of how broad it is in scope. The Regulation applies to all companies regardless of size, and is product-based in its application regardless of the industry sector that is involved.[4] It bans products that have been created using forced labor in whole or in part, at any stage of the extraction, harvest, production or manufacturing process. It applies not only to the primary products that have been created using forced labor, but also to their components.[5]
Products of any origin are affected, whether they were manufactured within the EU, present or made available in the EU market, or exported from the EU.[6] The EUFLR also impacts products that are offered online or through other forms of “distance sales” to end-users in the EU.[7] It does not, however, apply to the withdrawal of products that have already reached end users in the EU market.[8]
The EUFLR will be enforced
The EUFLR will be enforced by various supervisory authorities designated by the EU Member States.[9] The supervisory authorities will conduct investigations, including field inspections, when they suspect forced labor has been involved in the extraction, harvest, production or manufacture of a product.[10] Following the completion of its investigation, the supervisory authority will either close the investigation or issue a decision if it determines that a company has violated the Regulation.[11] Other grounds for finding a violation include cases of bad faith on the part of the company, or when the company has failed or refused to provide requested information.[12] Companies are therefore encouraged to cooperate with the supervisory authorities during the course of the investigation.
When a potential violation of the EUFLR has been identified, supervisory authorities have broad powers to take an enforcement action against the company perceived to be in violation. This includes prohibiting the company from (1) placing products in the marketplace, (2) making products available to customers, or (3) exporting products internationally. Authorities may also order the business to withdraw the products from the EU market, or to dispose of the relevant products or components.[13]
The Member States will establish effective and proportionate penalties applicable to companies that fail to comply with decisions of the supervisory authorities.[14]
Relevant obligations, including implied due diligence obligations
Companies face a challenge in trying to ensure that their products have not been made using forced labor. The EUFLR states explicitly that it does not impose additional due diligence obligations on companies “other than those already provided for in Union or national law.”[15] This clarification might appear counterintuitive, given that identifying the risks of forced labor in value chains would seemingly require some form of due diligence. The EUFLR emphasizes that companies must already address forced labor risks through existing EU due diligence laws, including the Corporate Sustainability Due Diligence Directive (CS3D),[16] which the Regulation is designed to complement.
The CS3D (see our post here) requires companies to identify and address adverse human rights and environmental impacts in their own operations and value chain. The CS3D entered into force on July 25, 2024, but the legislation is currently pending after the Commission adopted an Omnibus package in February 2025 to simplify its due diligence requirements, among other things. The CS3D’s future is even more uncertain as the EU has agreed – within the framework of the EU-US Joint Statement on Transatlantic Trade and Investment (the “Joint Statement”) – to consult with the US on CS3D-related issues, with the intention of avoiding an unnecessary administrative burden.[17] The Joint Statement’s Q&A noted, however, that this cooperation will not lead to any changes to EU domestic rules.[18]
Current negotiations around the Omnibus package include a proposal to significantly raise the thresholds for the CS3D so that it applies only to very large companies. Because the EUFLR applies to all companies, if these thresholds are confirmed very few companies will be within the scope of both the CS3D and the EUFLR.
Taking compliance steps
The first step companies should take to ensure compliance with the EUFLR is to assess whether they fall under the scope of the modified CS3D (as soon as possible following the Omnibus negotiation). For companies that are not subject to the CS3D, companies should ensure that they identify, prevent, mitigate, end or remediate any potential risk of forced labor being used in their operations or supply chains.
Companies should also keep in mind that due diligence measures will play a significant role in how they are evaluated by supervisory authorities under the EUFLR. For example, during the preliminary phase, supervisory authorities will ask companies about the status of their due diligence measures.[19] These authorities will grant companies considerable flexibility regarding their due diligence framework, as the EUFLR provides a broad range of acceptable due diligence measures:
- applicable EU or national law setting out due diligence and transparency requirements regarding forced labor,
- guidelines issued by the Commission,
- due diligence guidelines or recommendations of the UN, ILO, OECD or other relevant international organizations,
- any other meaningful due diligence efforts related to forced labor in their supply chain.[20]
A supervisory authority should not initiative an investigation if it determines that there is no substantiated concern, or that any such concern has been addressed. Applying due diligence measures that effectively mitigate, prevent, or eliminate the risk of forced labor is the most effective way to prevent an investigation from being initiated.[21]
The Commission will publish guidelines in relation to forced labor by June 14, 2026.[22] These guidelines will be based on the July 2021 due diligence guidance for EU businesses to help address the risk of forced labor in operations and supply chains.[23]
Conclusion and how we can help
The EUFLR creates certain obligations that companies operating in the EU must be ready to comply with by December 14, 2027. Businesses must take preparatory steps, including embedding responsible business conduct into policies and management systems, identifying and assessing impacts in operations, supply chains and relationships, ceasing, preventing and mitigating adverse impacts, etc.
We stand ready to assist with your preparations for the EUFLR’s entry into force. From the drafting of internal policies and assessment of forced labor risks to the analysis of the international reaction to the EUFLR’s adoption and entry into force, compliance gap assessments, and internal investigations, our lawyers and full suite of services are ideally positioned to guide you throughout the Regulation conformity cycle.
[1] Regulation (EU) 2024/3015 of the European Parliament and of the Council of 27 November 2024 on prohibiting products made with forced labour on the Union market and amending Directive (EU) 2019/1937, available here.
[2] The EUFLR defines forced labor as all work or service that is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily. The EUFLR refers to the definition of Article 2 of International Labor Organization’s (ILO) Convention No 29.
[3] EUFLR, Article 39.
[4] EUFLR, Recital 18
[5] EUFLR, Article 2 and Recital 18.
[6] EUFLR, Article 3.
[7] EUFLR, Article 4. Distance sales refer to “products offered for sale online or through other means of distance sales shall be deemed to be made available on the market if the offer is targeted at end users in the Union. An offer for sale shall be considered to be targeted at end users in the Union if the relevant economic operator directs, by any means, its activities to a Member State.”
[8] EUFLR, Article 1.
[9] EUFLR, Article 5.
[10] EUFLR, Article 19. See also Article 17 for the preliminary phase of the investigations and Article 18 for investigations.
[11] EUFLR, Article 20, 1.
[12] EUFLR, Article 20, 2.
[13] EUFLR, Article 20.
[14] EUFLR, Article 37.
[15] EUFLR, Article 1(3).
[16] Directive (EU) 2024/1760 of the European Parliament and of the Council of 13 June 2024 on corporate sustainability due diligence and amending Directive (EU) 2019/1937 and Regulation (EU) 2023/2859, available here.
[17] European Commission, Questions and answers on the EU-US Joint Statement on Transatlantic Trade and Investment, 21 August 2025.
[18] European Commission, Questions and answers on the EU-US Joint Statement on Transatlantic Trade and Investment, 21 August 2025.
[19] EUFLR, Article 17.
[20] EUFLR, Article 17.
[21] EUFLR, Article 17(5).
[22] EUFLR, Article 11.
[23] EUFLR, Recital 36; European Union External Action, Guidance on due diligence for EU businesses to address the risk of forced labour in their operations and supply chains.