The new General Product Safety Regulation (EU 2023/988 – GPSR) aims to fill the gaps in consumer protection in the EU, while addressing the complexities of modern products and online commerce, effective from 13 December 2024.

Key takeaways:

• Comprehensive Safety Net – A broad safety net for all non-food products, including those not covered by other EU legislation.
• Precautionary Principle – Proactive measures against potential health hazards, even without full scientific certainty.
• Strengthening of enforcement – Amplified enforcement possibilities through enhanced market surveillance powers, undercover purchasing, website blocking, substantial penalties for non-compliance, and an improved rapid alert system to ensure consumer safety in the EU market.
• New Technology Challenges – Ensuring long-term safety of technology products, including post-purchase updates.
• Online Consumer Protection – Providers of online marketplaces must comply with explicit product safety requirements.
• EU-Based Responsible Person – A designated contact for non-EU products to enhance safety and communication.

The General Product Safety Regulation (GPSR) represents a commitment of the European Union to consumer safety, aiming to fill legal gaps in safety for consumer products and taking into account the specific challenges of the digital world, in particular e-commerce and modern products, where protection may have been lacking with the current legal framework. Enacted on June 12, 2023, and set to be fully applicable from December 13, 2024, the GPSR aims to protect EU-citizens from the potential dangers of non-food products, whether purchased in physical stores or through the online marketplace.

As a general legal framework for product safety, the GPSR therefore co-exists with sector-specific product safety regulations, that it supplements, and national product safety regulations.

The rationale behind the GPSR’s development is clear: with unsafe products causing an estimated annual cost of €11.5 billion due to accidents, there is a pressing need for a regulatory framework that not only addresses current safety challenges but is also adaptable to future market innovations and consumer behaviors. The GPSR response to this challenge is the provision of a comprehensive safety net that extends protection to risks with regard to safety of consumer products not specifically covered by other EU legislation, thereby filling gaps that could leave consumers vulnerable to harm.

This regulation also addresses the unique safety challenges presented by new technology products. As products evolve and integrate more advanced technologies, it was imperative for the European legislator that they remain safe for consumers, not just at the point of purchase but throughout their entire lifecycle, including after software updates that may alter product functionality or introduce new risks.

Moreover, the shift in consumer purchasing habits also did not go unnoticed. With a growing number of transactions occurring online, the GPSR contains specific obligations for providers of online marketplaces, which need to adhere to explicit product safety requirements, ranging from the creation of internal processes for handling instructions from the authorities, suspension of services for non-compliant products, ensuring sufficient information on manufacturers and products offered on their marketplace, streamlining information on corrective measures taken and issues of non-compliance. With these additional obligations, the European legislator seems to recognize that providers of online marketplaces are becoming crucial in ensuring the safety and compliance of products sold from all over the world through e-commerce to customers in the European market.

Another important new obligation introduced by the GPSR in this respect is the requirement for non-EU products to have an EU-based responsible person. With this obligation the European legislator wanted to ensure a clear point of contact for both consumers and market surveillance authorities, facilitating better communication and more efficient handling of safety issues.

The GPSR also imposes new obligations with regards to the recall process for dangerous products. It requires direct communication channels and standardized notifications through provided templates, aiming to ensure that consumers are promptly informed and can access swift and cost-free redress. Considering these new obligations, it is crucial for businesses to familiarize themselves with the correct procedures to follow in the event of unforeseen issues with their consumer products. This includes knowing how to handle corrective measures such as recalls and providing information to consumers.

In addition to protecting consumers, the GPSR has significant implications for the business landscape. As a regulation rather than a directive, it ensures a consistent approach to product safety across the EU, with minimal scope for divergence in the legal framework of member states. The obligations imposed on economic operators (manufacturers, importers, distributors, etc.) and providers of online marketplaces will therefore be harmonized across the EU. While requiring additional effort, the uniform application across the EU also presents important opportunities for organizations active in multiple countries to streamline internal product safety processes across the whole supply chain, from manufacturing to import, distribution to the hands of the consumer.

The regulation also provides stronger enforcement of product safety regulations, offering protection to reputable companies from unfair competition posed by competitors engaging in unethical business practices. This is achieved through the introduction of more extensive powers for market surveillance authorities, the capacity to conduct covert purchases, website blocking, substantial penalties for non-compliance, and an enhanced rapid alert system (EU Safety Business Gateway) for dangerous non-food products.

“The GPSR fortifies protection measures through several key mechanisms, ensuring persistent protection against dangerous items and fostering a collaborative approach between consumers, businesses, and authorities.”

The precautionary principle introduced by the GPSR further strengthens this protective framework. It allows competent authorities to take proactive measures against potential health risks where there are reasonable concerns that a product may be unsafe, even in the absence of full scientific certainty, ensuring that consumer safety is prioritized, and potential risks are effectively managed. In this context, manufacturers, importers and distributors must carry out thorough risk assessments of their products and inform consumers about potential risks, thus enabling a higher level of safety for all products on the EU market.

Lastly, the GPSR offers support for small and medium enterprises (SMEs) by providing accessible guidelines to achieve compliance with product safety rules. This support is crucial for SMEs that may lack the resources of larger corporations but play a vital role in the EU’s economy.

In conclusion, the GPSR has big ambitions, looking to provide a comprehensive and future-ready framework that sets a new precedent in consumer protection. It aims to promote a safer marketplace, support a competitive business environment and reduce consumer detriment and associated economic costs, thereby contributing to the overall well-being of the EU internal market and its citizens. However, it remains to be seen whether these goals set by the EU will be achieved and what the exact impact on the market will be once the GPSR is fully operational. However, as new provisions have been adopted giving stronger enforcement possibilities to market surveillance authorities, it is advised for organizations offering consumer products to familiarize themselves with the new obligations imposed by GPSR to avoid unwanted disruptions and sanctions.

Action points:

• Familiarize yourselves with the rules of the GPSR and ensure consistent application across operations in different member states to increase legal certainty and avoid penalties or proactive measures by the authorities.
• Review your internal product safety practices to ensure they meet the uniform conditions set by the GPSR, such as internal risk analysis, information requirements, handling customer complaints and communication and information on product safety issues.
• Engage with the EU Safety Business Gateway for reporting and managing product safety issues, which will streamline interactions with market surveillance authorities.
• Contact EY Law to ensure compliance with GPSR and various sector-specific product and services safety regulations and/or assistance in regulatory investigations to safeguard your interests.