Can a refurbished device labeling scheme transform buyer trust in circular IT?

The refurbished market for smartphones, PCs and other connected devices is proving a resilient and growing opportunity. This rings true in both B2C and B2B—according to a recent Canalys (now part of Omdia) survey on consumer attitudes to smartphone purchasing, there is growing interest in refurbished devices. Meanwhile, an increasing number of channel partners and vendors are introducing refurbished IT into their portfolios—commercial buyer demand is also gradually growing, albeit stifled by persistent perception issues.

A lack of trust is a major concern towards refurbished devices

A recent Candefero poll found 40% of channel partners globally are likely to resell refurbished PCs in 2025—up from 32% in 2024 amid growing customer demand. A recent European consumer study conducted by Canalys (now part of Omdia) complemented this, with 39% of respondents stating they would consider buying a refurbished smartphone if it was up to 30% cheaper than a corresponding brand-new device.

However, the expansion continues to be limited by persistent perceptions of refurbished hardware as less reliable. In our consumer study, respondents listed a lack of trust as the second highest concern they have towards refurbished smartphones, following battery life. Other key concerns include the use of counterfeit spare parts and lacking transparency on a refurbished device’s origin. Similarly, in the B2B landscape, channel partners and their sales experts often find themselves dispelling commercial customers’ perceptions of refurbished hardware as less reliable or legitimate.

Whereas concerns regarding battery life of refurbished devices can be countered through better product marketing and spotlighting of battery health testing, the findings in the study stress the need for greater transparency and standardized processes to build trust in the segment.

Refurbished labels are reported to be in the works, starting in France

Buyers’ mistrust ultimately stems from a lack of consistency among refurbished devices alongside vague distinctions between used and professionally refurbished ones. As the EU works to enhance transparency via its energy efficiency and repairability labels for new smartphones this year, there is still need for a standardized framework to regulate the refurbished market.  

Recently, during the Reuse Economy Expo in Paris, a French government minister announced the government is working on developing a new labeling system, in collaboration with General Directorate for Enterprises (Direction Générale des Entreprises), to drive consistency in the standards of refurbished devices in the French market. It is natural the first push of a refurbished IT labeling scheme stems from France, which has leveraged legislation to drive circularity more so than any other country, or even the EU.

In recent years, France has introduced its repairability index for devices, requiring smartphones, PCs and TVs are sold with a repairability score at the point-of-sale; this later evolved into a durability index. Notably, it has a unique law requiring public sector organizations to ensure 20% of the IT and telco equipment they procure is refurbished. France has also been used as a debut market for HP’s Certified Refurbished PCs, while Schneider Electric used the French market for a pilot with Ingram Micro on refurbished UPSs.

Refurbished device standards could address persistent barriers to circular IT adoption  

The news about the development of a refurbished label raises a critical question: what information and metrics should such a label include to truly inspire confidence with consumers and companies? It should not only be used as an opportunity to distinguish professionally refurbished from used devices—it also needs to tackle several other key uncertainty factors.

Additionally, it remains a question how best to expand it on a larger geographical scale and how best it can gain confidence with end-users from day one. Backing from manufacturers will be a critical component in distinguishing between refurbished and used, potentially by providing an ‘approved refurbished’ stamp to devices at the point of sale if they meet the set refurbishment standards.

Moreover, vendors will need to pay attention as the label develops to ensure their existing OEM-refurbished devices are aligned with it. Both HP and Lenovo are now focusing on their Certified Refurbished device portfolios—representing vendors’ own efforts to standardize the refurbished products they sell directly and via partners—so any discrepancies between their high refurbishment standards and those of the label could pose compliance challenges.

Legislators must avoid ambiguity to establish trust in refurbished devices

Currently, the capacity of the label under development in France to support the refurbished market remains dependent on the details. So far, in lieu of any draft or specifics, players in the refurbishment sector are left with more questions than answers. The scheme’s effectiveness in building trust and transparency in the segment will come down to its ability to provide clear answers on these key issues:

• Defining ‘refurbished’: French legislators will need to provide a clear and objective definition of what sets apart a refurbished device from a used one, or a brand-new one. Consumers and commercial customers need to know exactly what to expect when considering refurbished IT, in the same way they know what to expect with brand-new hardware.
• Addressing device grading: to maximize the number of devices getting second or third lives, legislators will need to factor in how grades are used to communicate different conditions of refurbished devices. Grade A is often used in the industry to denote devices that are as good as new, whereas Grade C typically denotes some cosmetic imperfections, but grading is currently highly subjective and varies considerably between vendors, retailers, partners and ITADs. Legislators now face the challenge of redefining grading to balance quality, transparency and maximized device reuse rates.
• Enable transparency of refurbishment processes: to add credibility and build buyers’ trust in the label, legislators will need to ensure refurbished devices are sold with clarity over key factors. This notably could include where a refurbished device was sourced, which company refurbished it and in which facility, which components were tested, cleaned and replaced, and finally, whether these spare parts are legitimate or OEM-approved.
• Applicability for B2B sales and across hardware types: the legislation is likely to take aim at the consumer segment, notably smartphones, consistent with France’s previous effort to introduce a repairability index. However, circular IT-related legislation—such as the EU’s right-to-repair law—often excludes B2B IT purchases from their scope. As commercial customers warm to refurbished IT procurement, a consistent, widely recognized refurbishment label has the potential to dispel some companies’ lingering skepticism over refurbished devices.
• Addressing OS support: as spotlighted by the retirement of Windows 10, the expected longevity of a refurbished device is subject to how long OS vendors will provide free operating system and security updates. Clarity on OS and security support will be crucial to reassuring buyers (especially companies) of a refurbished device’s lifespan, regardless of the condition of the hardware.
• Accessibility for smaller refurbished market players: the French General Directorate for Enterprises will surely hear the voices of Europe’s refurbishing titans as it develops the label. However, companies with smaller scale refurbishing capabilities (including some channel partners) will likely have different perspectives on how the label can be fair, consistent and affordable to comply with.

Finally, the real potential of the labeling scheme to transform the wider refurbished market will depend upon its geographical scope. The introduction of the refurbishment labels in France will unveil the potential of such an initiative to tackle buyers’ most persistent concerns about the refurbished sector—and lessons will be learned along the way, potentially to inform an EU-wide labeling directive later down the line.