Estimated read time: 5 minutes
The EU General Product Safety Regulation (EU GPSR), which came into effect at the end of 2024, introduces updated rules for ensuring the safety of consumer products sold within the European Union (EU). Unfortunately, SMEs who export goods to the EU and Northern Ireland will now face additional administrative requirements and costs to meet their compliance obligations under the regulation. Below is a quick explanation of what the EU GPSR means for you as an SME or micro-business owner.
What is the background to the EU General Product Safety Regulations?
The EU GPSR replaces the now 30-year-old General Product Safety Directive (2001/95/EC) Digital developments and e-commerce have advanced exponentially over the past three decades and the new regulation is designed to provide for the modern economy.
Various parties within the supply chain are covered by the EU GPSR, including:
– Manufacturers – need to make products that comply with safety standards.
– Importers – must verify that non-EU products imported into the EU meet EU safety obligations before placing them on the market.
– Distributors – when handling and storing products covered by the regulation, distributors must ensure the safety standards related to the goods are safeguarded and maintained.
– Online Marketplaces – are required to withdraw unsafe products and provide safety information to consumers.
What are the EU GPSR compliance requirements?
For exporters to the EU, the following compliance requirements will need to be undertaken:
Reporting accidents
In the case of an accident that causes injury, economic operators or their nominated responsible person (see below) are required to make a report through the Safety Gateaway so relevant authorities within the country where the accident happened are informed.
Only serious accidents require reporting through the Safety Gateway. The regulation states the accident must have “resulted in an individual’s death or in serious adverse effects on that individual’s health and safety, permanent or temporary, including injuries, other damage to the body, illnesses and chronic health effects” to justify a report.
If you operate an online marketplace, you must report “any accident … resulting in a serious risk or actual damage to the health or safety of a consumer”.
If you receive a complaint about a particular product, this must be added to a maintained internal record, which is available for inspection.
Appoint a responsible person based within the EU
A significant new compliance requirement for economic operators that do not have a base in the EU is the obligation to appoint a ‘responsible person’. This person (or organisation that provides ‘responsible person’ services) must make all your specific products’ technical information, instructions, and safety information readily available.
If the manufacturer, importer, or distributor of your goods is based in the EU, they can act as your ‘responsible person’. But if every economic operator connected with your products is based in the UK or a non-EU country, you will need to appoint someone in an EU country to act as your ‘responsible person’.
Risk assessments
All manufacturers have to undertake a standard product risk assessment if their goods are being exported to the EU. The EU GPSR provides that the following must now also be included:
– Details of any cybersecurity and AI functionality and learning.
– Risks to vulnerable customers and any risks that come with the product but apply specifically to different genders.
– Changes to the product after it is placed on the market due to software updates and/or machine learning.
The above list is not exhaustive. The more complex your product/s, the more you will need to invest in testing and risk assessments to ensure compliance.
Traceability
You must be able to track your products and trace all movements throughout the supply chain, identifying the manufacturer, importer, and distributor.
Detailed product recalls
Product recalls are more intricate under the EU GPSR. In addition, you must offer consumers a choice of at least two of the following remedies (unless it is unreasonable or disproportionate) when carrying out a recall:
– Repair
– Replacement
– Refund
Do all products exported to the EU fall under the EU GPSR compliance requirements?
The regulations cover all goods exported to the EU and Northern Ireland, except:
– Food
– Animal feed
– Live plants and animals
– Aircraft involving low safety risks
– Pharmaceuticals (for people)
– Antiques
If you are unsure whether the goods you export are covered by the EU GPSR, an experienced Commercial Law Solicitor can advise you.
Final words
The EU GPSR compliance requirements will undoubtedly impact the turnover and profits of micro-businesses and SMEs. Large organisations can distribute the additional costs compliance brings throughout their product ranges and export markets. However, this is not always an option for SMEs and is likely to be out of reach for micro exporters. This, among other reasons, is why the Labour Government is working hard to reset relations with the EU in 2025 without negating the 2016 Referendum results.
If you are an SME and are unsure about any aspects of the EU GPSR, the best thing you can do is talk to an experienced Commercial Law Solicitor. They can clarify your organisation’s compliance requirements and provide you with confidence that you will not face an investigation or penalty related to a breach.
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