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After extensive consultation, the Waste Electrical and Electronic Equipment (WEEE) regulations are due to be introduced in the UK in stages over the coming months. And businesses need to be aware of the implications for the management of their IT equipment.

The WEEE regulations govern the disposal of all waste electrical and electronic equipment (IT and telecommunications equipment, electrical and electronic tools, monitoring and control instruments, as well as many household appliances, toys and other electrical goods). First introduced as a European Union Directive in 2002, the regulations aim to reduce the volume of electronic waste and its impact on the environment. Failure to comply will constitute a criminal offence and defaulters may be liable for significant fines.

The good news as far as most organisations are concerned is that the onus falls on their suppliers. Primary practical and financial responsibility for dealing with WEEE rests with 'producers' of equipment, widely defined to include manufacturers, sellers of own-brand equipment and importers and exporters of equipment into the EU. Such businesses are required to register as producers, mark the goods they produce as requiring regulated disposal, submit WEEE-related reports and, most importantly, take responsibility for the collection, treatment and recovery of waste equipment.

Linked obligations are imposed on distributors selling new equipment covered by the regulations who will be required to 'take back' the waste equipment that their products replace and arrange for the delivery of these to designated collection points. Both producers and distributors can fulfil certain obligations by joining approved compliance schemes.

Business burden

However, the burden does not solely lie with suppliers and retailers. The regulations also affect business users of electrical and electronic equipment who will be responsible for the disposal of 'Historic WEEE' (ie waste equipment produced before June 2006) which is not being replaced by new equipment, and for reporting on any disposal, recycling or reuse of Historic WEEE. In addition, the regulations allow producers to transfer their obligations to business purchasers of equipment by agreement.

So how will the regulations affect IT management? Take the example of a business which is disposing of a number of PCs and printers which it is not directly replacing. As this constitutes Historic WEEE, the business is obliged to finance the collection, treatment, recovery and environmentally sound disposal of the equipment. It will also need to consider associated legal issues such as complying with data protection requirements in relation to information stored on the hard disk or memory of the discarded equipment.

Now suppose that the same business decides to purchase new laptops through a US-based online retailer. As it is bringing electronic equipment covered by the regulations into the EU, the business itself may be classified as a 'producer' under the regulations. Alternatively, the wording of the contract for the laptops may pass any responsibility for dealing with WEEE on to the purchaser. In either case, the business may have to take on the burden of producer obligations and the costs associated with the ultimate disposal of the laptops.

WEEE checklist

The steps businesses should take are clear. In the UK, the regulations are due to be transposed into law by the end of the year, with marking requirements indicating the disposal obligations then coming into force immediately. That will be followed by registration requirements from January 2006 and producer responsibility and retailer take-back obligations from June.

In preparation for that, any business should consider:

• Classification issues: Whether it is classified as a producer of any of its IT equipment, and if so, what steps it should take.
• Legacy equipment issues: How to deal with electrical and electronic equipment which is currently in use and will in due course become Historic WEEE.
• Pure contractual issues: Review IT purchase agreements carefully and consider the consequences of any apportionment of costs or risks associated with WEEE.
• Data protection issues: Address the need to erase personal data from IT equipment which may be due for disposal, noting that the increased emphasis on return of equipment and recycling/reuse increases the risks associated with data leakage.

As that illustrates, the regulations impose a wide range of complex obligations on businesses. And those obligations need some careful consideration.

Matthew Godfrey-Faussett is a partner in the Technology and Intellectual Property team at UK law firm McGrigors