The Failure of GS1’s Product Passport: A Critical Analysis
A barcode tells a story—but what if that story is no longer true? For years, we have been using the services of GS1, an organization that provides unique barcodes to manufacturers and distributors. These 13-digit barcodes are an essential part of product identification: they link an article to its first importer in Europe. Via the GS1 website, consumers can easily find out who is responsible for a product, which not only provides transparency, but can also be a fun hobby—try it with the packaging during lunch! (Verified by GS1)
For our organization, however, it goes beyond just identification. We link all our quality documents, such as CE certifications, RoHs, PAHs, and other safety standards and manuals, to these barcodes. Product safety is not a side issue for us, but a distinguishing factor with which we position ourselves against unreliable platforms and Chinese webshops. Watch the article with Teun van de Keuken and Antoinette Hertsenberg on Eva Jinek this month, in which they provide sharp insight into the dangers of poor product safety.
The Future: Digital Transparency?
GS1 is taking an ambitious step towards digital transparency. The idea of following the “digital journey” of a product via QR codes, including material use and other environmental aspects, is an excellent development. It would give end users insight into the sustainability and production processes of an article. Unfortunately, practice and current market forces indicate that this vision will probably fail.
The Problems: No Connection with Owners
The biggest obstacle? Large consumer platforms such as Bol.com do not make a connection between barcodes and the actual product owners. This means that anyone can sell a product under an existing EAN code, even if it is an inferior copy. Tros Radar has already shown how easily dangerous children’s toys can be sold via Bol.com. (See the article here.) This allows products with “other or no EAN code”, but of a much lower quality, to be offered on an existing advertisement. This not only damages the reputation of the original seller, but also undermines confidence in the system. We have approached GS1 to take action against this, but the organization refuses to hold its largest customers, such as Bol.com, accountable.
The Bol.com problem
Bol.com hides behind an inaccessible Notice-and-Take-Down department (NTD) and the argument that thousands of new products are uploaded every day. As a result, the situation becomes untenable for companies like ours. Even the request to stop using our barcode is referred to GS1 to suspend our EAN. In the meantime, others continue to sell under our carefully constructed EAN code and profit from our marketing and Google positions.
The consequences for entrepreneurs
For us, this is not only frustrating but also expensive. We purchased stock based on historical sales figures, but these practices leave us with thousands of euros of unsaleable stock. Creating a duplicate of a successful barcode costs time and money, which severely affects small businesses. A Race to the Lowest Price Bol.com seems to be deliberately running a race to the lowest price, with Amazon as its biggest competitor. Quality and good entrepreneurship no longer play a role in this. This policy forces suppliers to lower their prices below cost price, which is disastrous for the market in the long term. Ironically, other marketplaces, such as Blokker, do comply with the rules, but they are the ones who are slowly disappearing from the streets.
Conclusion
GS1’s product passport is bankrupt in practice. Although the system should be a powerful tool on paper to guarantee transparency and quality, it fails in the current market environment. Major players such as Bol.com do not cooperate, and GS1 seems powerless or unwilling to intervene. For companies like ours, this leads to major losses and an untenable competitive position. It is time that both GS1 and platforms such as Bol.com take responsibility, so that quality and good entrepreneurship become central again.