The European Union's assembly, meeting in Strasbourg, France, voted by an overwhelming show of hands to approve the "electroscrap" laws after more than three years of debate.
Under the new rules, the EU hopes 75 percent of such goods can be recycled. The law is due to come into force in September 2005. The EU estimates old appliances account for approximately 6 million tons of waste across Europe, most of which goes into landfills.
Karl-Heinz Florenz, the German conservative who steered the bill through Parliament, said it would "meet the needs of consumers, environmentalists and industry."
Manufacturers estimated the rules could cause them to spend $7.7 billion a year to collect and dispose of the waste. They warn the costs could be passed on to consumers, ranging from 50 cents for a small appliance such as a coffee maker to up to $20 for a fridge.
However, companies generally welcomed the new rules as a pragmatic solution to the environmental problems caused by electroscrap.
They were pleased that each manufacturer will pay for recycling its own waste once the plan is fully operational, instead of sharing costs across the industry.
"A level playing field is vital; manufacturers should never be forced to pay for other than their own waste," said Luigi Meli, director general of the European Committee of Electric Equipment Manufacturers.
Producers will, however, have to share the costs of disposing of equipment sold before the law comes into force.
Four leading electrical manufactures -- Electrolux, Hewlett-Packard, Sony and Braun -- met in Brussels this week to consider how best to gather and dispose of old goods.
"Our aim is to identify high-quality recycling services on the best terms for the European market to minimize the costs passed onto consumers," Hans Korfmacher of Germany's Braun said Monday.
The law also told EU governments to "take appropriate measures" against companies that design equipment specifically to prevent reuse, forcing customers into buying new goods.
Officials said the measure was aimed at producers of computer printer ink cartridges who introduced design features to thwart refilling.
The new laws will also ban the use of toxic substances such as lead, mercury and cadmium in household appliances by 2006.
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