Digital labeling of toys and creative goods

2024: Mandatory digital labeling of children's toys introduced in Russia

From March 1, 2025, it is planned to introduce mandatory digital labeling of certain types of children's toys in Russia. This became known in August 2024. The corresponding draft resolution, developed by the Ministry of Industry and Trade of Russia, is published on the official portal of regulatory legal acts.

According to RBC, the new requirements will apply to toys intended for children under the age of 14. In accordance with the draft resolution, all participants in the turnover of such goods, including manufacturers, importers and retailers, will have to register in the Honest Sign system by early spring 2025. Direct labeling of products by manufacturers and importers will begin on June 1, 2025.

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Freepik

As the newspaper notes, as of August 2024, labeling of children's toys is carried out in test mode. The pilot project, which started on December 20, 2023, has already demonstrated a high level of interest from market participants. According to Varvara Mikhailova, head of the consumer goods department at the Center for the Development of Advanced Technologies (CRPT), operator of the Honest Sign system, companies are actively participating in the experiment, despite its voluntary nature.

To support small and medium-sized businesses, the Ministry of Industry and Trade has provided for the possibility of choosing the optimal set of equipment for labeling, taking into account the specifics of production processes. In addition, manufacturers will be able to receive compensation in the amount of 50% of the cost of the necessary equipment from the CRPT.

In Russia, the mandatory labeling system already covers 17 categories of goods, which make up 15% of the country's non-resource GDP. According to authorities, the cumulative economic effect of the introduction of the labeling system is estimated at ₽791 billion. In addition, in 15 additional categories of goods, including printed products, radio electronics and fiber, labeling goes through an experimental stage.^[1]

2022: Digital Toy Tagging Launch Announcement

In mid-February 2022, it became known about the upcoming launch in Russia of an experiment on digital labeling of children's toys and creative goods. It will begin on June 1, 2022.

Market participants believe that the innovation will lead to an increase in the cost of these products. However, the Center for the Development of Advanced Technologies (CRPT, labeling system operator) does not agree with this.

Labeling will not cause prices for toys and creative goods to rise. Before the introduction of labeling, an experiment is always carried out to develop an agreed approach to both the list of products and the features of the labeling itself, as well as the most comfortable conditions for business. Labeling does not affect prices, this did not happen in any group where it already operates, - a representative of the CRPT told TASS.

The initiative to conduct the experiment belongs to the Ministry of Industry and Trade. It is assumed that at the first stage, the marking will affect board games, dolls, cars, toy weapons, paints, plasticine and other goods.

Children's products by February 2022 remain vulnerable to counterfeiting by the industry. According to the Association of Enterprises of the Children's Goods Industry (owned by Zvezda JSC and Detsky Mir PJSC), counterfeiting of licensed toys, including using popular animated images last year, amounted to about 43-44%. In addition, the facts of the supply of toys made of toxic materials that can cause irreparable harm to health are recorded. Analysts of the law firm "Gorodissky and Partners" note that clothes are in second place after toys in counterfeit children's goods. As a rule, a fake is taken to Russia from China.

According to experts, price stabilization HSE is another effect of using the system. It turned out that labeled goods are smaller and more expensive than unmarked ones.^[2]

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