On 13 December 2024, the new General Product Safety Regulation (GPSR) came into effect. This regulation introduces a modernised framework for consumer product safety across the European Union (EU). It aims to address safety concerns, particularly for products sold via online marketplaces, ensuring they meet stringent EU safety standards.
This is a broad piece of legislation and applies to any non-food product that a consumer might reasonably be expected to use, including second hand goods. This change will affect all businesses exporting from Great Britain to the EU. This includes cases where a UK (English) business supplies goods to another UK (Northern Ireland) business. Under the Windsor Framework, Northern Ireland remains aligned with the EU single market rules for goods, meaning that trade between Great Britain and Northern Ireland must comply with the EU regulations, including the GPSR. How GB businesses respond will impact trade within the EU, given that UK exports to the EU made up 42% of all UK exports in 2023. However, the GPSR will not apply to existing stock that complied with product safety rules before 13 December 2024.
What are the key changes?
GPSR will impose new responsibilities on manufacturers, importers, distributors, online marketplaces, and fulfilment service providers. These key obligations include:
- Risk assessments and documentation: Conducting risk assessments and drafting policies before placing products on the market. Products will also need to be accompanied by technical documentation detailing the product’s design, safety features, and associated risks.
- Enhanced Labelling and traceability: Complying with enhanced labelling and traceability requirements. Products must include the manufacturer's name, contact details, identifying elements and this information must be provided in the language of the EU member state where the product is being sold.
- Corrective measures for safety risks: Promptly informing consumers and authorities about safety risks and ensuring clear recall processes. They must also offer effective remedies in product recalls, such as repair, replacement, or refund.
- Records: Maintaining detailed product and supply chain records for at least 10 years.
EU Responsible person
One of the main requirements is that for all products, a business must designate a responsible person within the single market as a point of contact. This entity’s contact information must be included on the product label.
Online Marketplaces
GPSR introduces specific provisions and obligations for online marketplaces to address digitalisation challenges and for the first time it acknowledges their crucial role in today's consumer market. These obligations include:
- Designing interfaces to enable traders and manufacturers to present all information mandated by the GPSR, such as contact details, product batch and serial numbers, and safety information, within the product listing.
- Establishing a single point of contact for regulatory authorities and consumers.
- Registering with the EU Safety Gate Portal to report and monitor safety issues for products sold on their platforms.
Impact on businesses
It is crucial for businesses to determine their position in the supply chain and whether they qualify as manufacturers. If they are not manufacturers, they must ensure their manufacturer complies with the GPSR.
Businesses will face increased compliance costs, needing to invest in infrastructure for risk assessments, labelling, and traceability systems. Additionally, appointing a responsible person will incur further costs and administrative burdens.
The GPSR permits individual Member States to set penalties for non-compliance without a maximum limit. Consequently, manufacturers and online marketplaces could face substantial fines for non-compliance, along with reputational damage due to increased transparency and reporting obligations. It remains to be seen how strictly the EU and Member States will enforce the regulation initially, and they may adopt a light-touch approach at the outset.
On 13 December 2024, the new General Product Safety Regulation (GPSR) came into effect. This regulation introduces a modernised framework for consumer product safety across the European Union (EU)