MANUFACTURERS and retailers of electrical and electronic products face a major change in the way their goods are disposed of this year . . . but nearly half of them do not understand it.

The Waste Electrical and Electronic Equipment (WEEE) Directive is a European law set to come into force in July that aims to reduce the amount of electrical goods dumped on municipal waste sites.

By July, all of the equipment manufacturers and retailers in Europe will be forced to take back and recycle their old equipment - including items such as computers, printers, toasters and washing machines - rather than just let consumers dump them.

Retailers will have to keep records of sales for four years and either take back goods in the store, or collect goods and take them to local, free recycling collection points, such as civic amenities.

Research conducted by Manchester law firm Eversheds found that a huge proportion of affected companies failed to comprehend their WEEE obligations.

The study revealed that 42 per cent of manufacturers and retailers still do not understand what they need to do to comply with the law and just 70 per cent of smaller companies had even heard of it.

Jane Southworth, a partner in IT law at Eversheds, said: "The results cast a degree of doubt over just how effective it will be in the UK.

"But the current lack of consequences for non-compliance may deny it the teeth it needs to force companies to sit up and listen."

The drive is being promoted by a nationwide tour of the WEEE man, a seven metre high figure constructed from old electrical and electronic goods, which will be displayed in Bolton in March.

Nick Ward, regional manager for Envirowise, the Government's environmental business agency in the North-west, said: "It is estimated that up to 100,000 businesses will be affected by the legislation, meaning detailed support and information will be needed over the next six months and beyond, to help people fully understand and adapt to these new regulations."

Companies can access free advice and information from Envirowise at www.envirowise.gov.uk/weee or by calling the helpline on 0800 585794.