Digital labelling is very much to the fore in the current Product Labelling Regulatory Review.
Businesses, including GS1 New Zealand, have shared with the Ministry for Regulation that they see many potential benefits in digital labelling.
The Product Labelling Regulatory Review is now examining how the Government can provide direction in this area, taking into account international trends and innovative practices.
The regulatory review encompasses all forms of labelling and more than 30 current laws and codes that mandate what and how information is displayed on products across a range of sectors.
By Christmas, Cabinet Ministers will have received recommendations to align New Zealand regulations with international labelling standards, remove barriers to interoperability with global markets, encourage innovation in information sharing, and reduce business compliance costs.
The Ministry for Regulation started the review by engaging widely with businesses and industry organisations (including GS1 New Zealand) to identify issues, opportunities and “regulatory pain points” in New Zealand’s overall labelling system.
This engagement has now led to the review of the terms of reference, which highlight digital labelling as one of five core topics. (Others include food and beverage labelling, and labelling barriers to competition among supermarkets.)
Following its engagement process, the Ministry reports: “Regulated parties across a range of sectors raised digital labelling as an area of opportunity, while also retaining the importance of ensuring information is still accessible to all consumers.”
Many businesses made it clear that they want digital innovation, especially through the use of QR codes and 2D barcodes, which provide interoperability with overseas markets, enable easier label changes, provide more space for information on printed labels, and offer various other benefits.
When asked about ways to cut labelling compliance costs, responses included: "Adoption of an e-labelling regime would streamline implementation and significantly reduce costs while improving consumers' access to up-to-date information” and “(enable) explicit recognition of GS1 Digital Links, QR Codes and other smart packaging technologies as valid carriers of regulatory information.”
The review terms highlight the importance of international alignment, including consideration of labelling requirements for both imports and exports, and of approaches to labelling that will enhance New Zealand’s compatibility with and access to other markets, while maintaining consumer protection”.
The Ministry reports that the European Union and the US are increasingly accepting QR codes as primary carriers of regulatory information, with the EU also introducing “digital passports” for some products entering that market.
”New Zealand exporters may face challenges if we don't keep up with technological advancements. Some stakeholders suggested harmonising the approach to digital labels across countries or products … (although) digital labels may not be appropriate for all products or for some requirements.”
In the review’s second stage, the Ministry is investigating the five topics, including digital labelling, in greater depth to develop recommendations for regulatory change.
The Cabinet is scheduled to make decisions on these next February, with any amending legislation to be introduced thereafter.
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