There is a large global network dedicated to ensuring products are reliable, safe, and operate in predictable ways. Despite regional differences in product standards, the regulatory authorities who create them, and the certification bodies that test products’ adherence to applicable standards, the goal is the same: maintaining a certain standard for consumer products.
However, as long as there have been compliance systems and authorities to enforce them, there has been a market of unauthorized devices hoping to fly under the radar. Creators, marketers, and distributors of unauthorized devices may try to avoid the cost of certifying their products in the first place, renewing the certification, applying the required label, or recertifying later models that have unique designs from the original.
Selling unauthorized products is a major legal risk, as well as a public safety hazard.
Legal Risks of Unauthorized
Devices
Those caught selling, marketing, or distributing unauthorized devices may be subject to costly penalties. For example, according to the Code of Administrative Offenses of Russian Federation, selling certain products in Eurasian Economic Union countries—like Russia, Belarus, and Kazakhstan—without EAC certification and the appropriate product labeling could result in the following fines for a first-time offender:
●
Citizens: 1,000-2,000 roubles
●
Officials: 3,000-10,000 roubles
●
Sole proprietors: 10,000-20,000
roubles
●
Legal entities: 20,000-30,000
roubles
These fines increase if the unauthorized product is a communication device, or if non-compliant products are sold again within a year of the first offense.
While the fines and enforcement mechanisms may
vary, these types of consequences play out worldwide. In the U.S. in 2020, Ubiquiti agreed to pay a $250,000 civil
penalty for selling radio equipment that exceeded legal limits on radiated
emissions. Due to a software driver calibration data error, Ubiquiti WiFi
access points were operating at higher power levels than originally stipulated
in their certification documents. This caused the devices to exceed limits on
radiated emissions. In addition to paying the fine, Ubiquiti agreed to
implement a compliance plan and task a senior manager with overseeing their
compliance going forward.
Public Safety Risks of
Unauthorized Devices
In addition to the legal risks for companies that make and distribute these devices, there are public safety risks as well. An unauthorized product can cause fire, electric shock, radiation, or other harmful consequences if there are not appropriate safeguards for voltage, temperature, and other potential hazards.
For example, unauthorized or improperly resold
personal protective equipment (PPE) creates risk for healthcare workers, and it
became a problem during the COVID-19 pandemic.
The U.S. Food and Drug Administration also warned against unauthorized devices for diabetes management
in 2019, which resulted in at least one insulin overdose requiring medical
attention.
EAC Certification for
Authorization in Eurasian Economic Union
EAC certification is required for products in several key categories to be marketed and sold in Customs Union countries:
●
Products used by children and teenagers,
including toys and playground equipment
●
Transportation implements, such as vehicles,
elevators, ships, railway infrastructure, and any products used for the fuel,
machinery, lighting, or EMC devices within it
●
Food products, including grain, juice, food
additives, milk, and others
●
Hazardous materials, such as fireworks,
chemicals, fertilizer, and machines that use gaseous fuels or hazardous
substances
Sellers who try to skirt the applicable regulations to access the market of more than 180 million consumers could face serious legal, financial, or product safety consequences.
Contact G&M Compliance to
Learn More
The experts at G&M Compliance can help you
determine if your product requires certification, and if so, provide end-to-end
support for certifying products for sale in Eurasia. Contact
us today to learn more about EAC certification.