THE IMPACT OF DIGITAL PRODUCT PASSPORTS (DPPs) IN LUXURY AND SPORT
As the European Union (EU) introduces Digital Product Passports (DPPs), luxury Maisons and sports brands face both regulatory obligations and new opportunities to strengthen authenticity, sustainability, consumer engagement — and to benefit from the free movement of compliant goods across the internal market of the EU.
The DPP, created under the Ecodesign for Sustainable Products Regulation (ESPR) (Regulation (EU) 2024/1781), which came into effect on 18 July 2024, will provide a digital record of each product’s lifecycle — covering origin, materials, compliance, environmental impact, and end-of-life recommendations.
For the luxury and sports industries, this tool is not just a regulatory requirement but a transformative innovation: it strengthens the fight against counterfeiting, enhances supply chain traceability, and opens new opportunities for fan and consumer engagement through blockchain and smart contracts.
The ESPR establishes the DPP as a binding requirement for all physical goods placed on the EU market, including components and intermediate products (Art. 1(2)). This means that non-EU manufacturers must comply, giving the Regulation a de facto extraterritorial effect.
According to Article 2(28), the DPP is defined as a structured set of product-specific data, accessible electronically via a data carrier such as a barcode, QR code, NFC chip, or RFID tag. Each product will also be assigned a unique product identifier (Art. 2(30)), directly linking it to its passport.
Beyond these formalities, the ESPR introduces binding ecodesign requirements (Art. 5) covering durability, reliability, reusability, repairability, recyclability, energy and resource efficiency, and the prevention of premature obsolescence.
The DPP functions as the vehicle through which compliance with these requirements is documented and verified across the value chain. All data must be interoperable, machine-readable, and accessible to relevant actors — from consumers and retailers to recyclers and regulators — with strict guarantees of security and authenticity (Arts. 10–11).
The Regulation also establishes robust enforcement mechanisms. Under Article 71, Member States must intervene in cases of formal non-compliance — for example, where the CE marking is missing, the declaration of conformity has not been drawn up, or the DPP data is absent or incomplete. If breaches persist, national authorities may restrict, prohibit, or withdraw the product from the market. Beyond this, Article 74 requires effective, proportionate, and dissuasive penalties, which may include fines or exclusion from public procurement, calibrated to the seriousness of the infringement, any economic benefit derived, or the environmental damage caused.
In this context, the success of DPPs will ultimately depend not only upon legal enforcement but also on the ability to guarantee trust, interoperability, and security across global supply chains. This is where technology comes into play. Blockchain offers a tamper-proof and verifiable infrastructure: by recording key information, such as material origin, certifications, and environmental footprint on a distributed ledger, it strengthens transparency, prevents fraud, and enhances consumer trust.
Smart contracts — self-executing agreements embedded in blockchain — add a dynamic layer. They can trigger warranty services, recycling incentives, or sponsorship royalties automatically once conditions are met. By reducing reliance on intermediaries and lowering transaction costs, they transform the DPP into an active tool for compliance, efficiency, and innovation.
In the fields of luxury and sport, the DPP goes far beyond a compliance obligation. It is a lever for added value, enabling brands to authenticate products, substantiate sustainability claims, and create new forms of engagement with consumers and partners.
In the luxury industry, blockchain-backed DPPs reinforce product authenticity (for handbags, watches, or jewellery) whilst certifying sustainability claims, directly addressing consumer expectations for transparency. For clients, scanning a QR code or NFC chip becomes an entry point to trace provenance, discover craftsmanship stories, and even unlock exclusive brand content.
One of the most compelling real-world applications is the Aura Blockchain Consortium, a non-profit initiative founded by LVMH, Prada Group, OTB, and Richemont. Aura assigns a unique digital identifier to each product, recorded on blockchain, ensuring authenticity, provenance, and compliance with sustainability requirements. By combining private and public blockchain solutions, it enables luxury brands to build consumer trust whilst aligning with EU obligations on DPPs.
In the sports sector, DPPs combined with blockchain and smart contracts could authenticate sportswear and memorabilia, ensure traceability of sustainable materials, or automate sponsorship royalties linked to sales and player usage. For major events — such as the FIFA World Cup or the Olympics — these tools could also support anti-counterfeiting measures and provide real-time transparency for sponsors, teams, and fans alike.
Concrete initiatives already illustrate this potential. FIFA Collect leverages blockchain to issue digital collectibles tied to iconic football moments, embedding added value, such as ticketing rights and exclusive fan experiences.
The International Ski and Snowboard Federation (FIS) has introduced RFID chips in ski jumping suits, limiting their use per season to promote fairness and reduce waste. Earlier, the 2018 FIFA World Cup Official Match Balls, the Telstar 18 and Telstar Mechta, pioneered the use of embedded NFC chips, each generating a unique identifier to unlock exclusive digital content and fan challenges. These initiatives show how sport is already experimenting with digital identifiers, foreshadowing the systemic role of DPPs.
Ultimately, the DPP cannot be reduced to a mere formalistic compliance exercise. For luxury and sport, it is an invitation to rethink how products are designed, traced, and experienced. By embedding transparency at the heart of the product, the DPP can become a bridge between compliance and creativity — one that reassures regulators whilst captivating consumers.
Blockchain and smart contracts give this framework the strength it needs. Blockchain secures the integrity of information, whilst smart contracts bring it to life by transforming static obligations into dynamic interactions. Together, they offer brands the chance to turn regulation into trust, traceability into storytelling, and compliance into genuine added value.
Yet, as promising as this transformation may be, compliance with the ESPR and the deployment of DPPs across complex value chains remain legally and operationally demanding. Navigating the requirements on ecodesign, data access, enforcement, and penalties calls for careful structuring and anticipation. In this context, legal advisors play a critical role in guiding brands through the regulatory framework and ensuring that innovation is built on secure, compliant foundations.
Seen this way, the DPP is less of a constraint more of an opportunity, a bridge between compliance and creativity, regulation and consumer trust. It enables luxury Maisons and sports organisations to turn obligations into added value. Yet its implementation across global value chains raises complex legal and operational challenges. This is precisely where legal advisors add value, ensuring, as mentioned, that innovation rests on secure and compliant foundations.
For further information and advice, email Dr Estelle Ivanova at ivanova@valloni.ch.