Product safety is a key issue for consumers and retailers. In order to do justice to this topic, there are regulations throughout Europe that are intended to guarantee the safety of products. In December of this year, many companies will be faced with changes in this regard. You can find out exactly what these are in this article.
We take a closer look at the new European Product Safety Regulation, which comes into force on 13 December 2024. We clarify the most important questions and shed light on the implications for companies - especially online retailers.
What is the general product safety regulation?
From 13 December 2024, the new European regulation on general product safety regulation (EU) 2023/988, also known as the general product safety regulation (GPSR), will come into force. This regulation was published in the Official Journal of the European Union on 23 May 2023 and aims to ensure that consumers in the European Union can only purchase safe products.
Specifically, the product safety regulation sets out comprehensive safety requirements for consumer products and also contains specific rules for distance selling, which are particularly important for online retailers.
The main aim of the new regulation is to ensure that only safe products are offered to consumers in the EU, regardless of where the products come from and whether they are sold in physical shops or on online marketplaces. The GPSR is intended to help maintain and further improve the high level of product safety in the EU.
Why has the old product safety directive become obsolete?
While the national product safety directive has previously served as the basis, the new regulation will apply directly and supersede the national regulations. But why is this change necessary?
The previous regulations on product safety date back to 2001 and are now outdated due to technological developments. With the new regulation, the EU wants to ensure that uniform safety standards for products apply in all member states in order to strengthen the internal market and cross-border trade.
This regulation also marks a comprehensive modernisation of the general product compliance rules, the biggest reform since the introduction of the New Legislative Framework (NLF). The general product safety regulation aims to meet the requirements of the digitalisation of products and new business models. For online retailers in particular, the new regulations entail stricter rules - more on this later.
Who are affected by the new directives?
Economic operators are affected by the new requirements of the EU product safety regulation. This includes everyone involved in the manufacture and sale of products. According to Art. 3 No. 13 GPSR, these are the manufacturer, the authorised representative, the importer, the distributor, the fulfilment service provider and any other natural or legal person who is subject to obligations in connection with the manufacture of products or their making available on the market in accordance with this regulation.
As a significant innovation, fulfilment service providers have been included as economic operators. These service providers, who are responsible for storage, packaging and dispatch, must now also comply with the safety standards.
In addition, providers of online marketplaces have been included in the scope of the regulation. These platforms now have a special responsibility. They must ensure that the products sold on their marketplaces meet the safety requirements and do not pose a risk to consumers.
With these extensions, the regulation ensures that all players along the value chain contribute to product safety. The aim is to ensure that consumers in the EU can only buy safe products.
Which products are affected by the new product safety directive?
The general product safety regulation applies to a large number of products that are intended for consumers or can be used by consumers. A product is defined here as any item that is supplied or made available individually or together with other items, whether in return for payment or free of charge.
However, there are exceptions to this rule, such as
- Human and veterinary medicinal products
- Food and animal feed
- Live plants and animals
- Animal by-products and derived products
- Plant protection products
- Means of transport that are not used directly by the consumer
- Aircraft
- Antiques
The GPSR raises the question of whether ‘stand-alone’ software is considered a product within the meaning of the regulation. This mainly concerns products for which there are no specific EU safety regulations, but which pursue the same objective. This means that products that are not explicitly intended for consumers, but are likely to be used by consumers, are also covered by the Regulation.
The Regulation distinguishes between general and specific product safety requirements, similar to those already laid down in the Product Safety Directive. Important innovations such as the right to a remedy also apply to harmonised products.
Obligations at a glance
Online retailers in particular must comply with the stricter safety standards from 13 December 2024 at the latest in order to ensure consumer protection. This includes ensuring that their products comply with European safety requirements and do not pose a risk to the health and safety of consumers.
What this means in concrete terms follows now.
General obligations for retailers
Before a product is placed on the market, distributors have a major responsibility to ensure that it complies with the applicable safety standards. This responsibility includes a number of obligations, most of which are set out in Art. 12 of the GPSR. What is new is that these obligations apply from the moment the product is placed on the market and are therefore brought forward considerably thanks to the new EU Product Safety Regulation.
- Control obligations: Before a retailer offers a product on the market, a number of important control obligations must be observed in accordance with Art. 12 Para. 1:
-> Manufacturers or importers must ensure that each product has an identifiable serial or batch number. If this is not the case, this must be stated in the product information.
-> In addition, the information on the product must include the name of the manufacturer or its trade mark as well as a contact address both by post and in electronic form. If this information is not provided directly on the product, it must be included in the product leaflet.
-> In addition, clear instructions and safety information for consumers are required in accordance with Art. 12 Para. 1. These must be written in a language easily understood by the consumer, as determined by the Member State in which the product is sold. - Ensuring storage and transport conditions: Distributors must ensure that the storage and transport conditions do not adversely affect the quality and safety of the product, in accordance with Art. 12 para. 2. This also includes ensuring internal procedures to ensure product safety in accordance with Art. 14 of the GPSR.
- Prohibition of sale and obligation to notify: If a distributor knows or suspects that a product does not comply with the above-mentioned requirements, he may not place it on the market unless the conformity of the product can be proven.
- Recognition as a manufacturer under certain circumstances: Under certain circumstances, other economic operators such as distributors can also be recognised as manufacturers in accordance with Art. 13. For example, if they distribute a product under their name or trade mark or if they make significant changes to the product that may affect its safety.
In addition to the existing obligations, manufacturers must now carry out an internal risk analysis for each product and prepare technical documentation. According to Art. 9, this documentation must be kept for at least ten years and kept up to date.
Special obligations for distance selling
Special requirements apply to the sale of products via the internet or distance selling, which are set out in Art. 19 of the GPSR. Some of these requirements already apply, for example the obligation to display warnings on products such as biocides or toys. The information must now be presented more clearly overall.
A new requirement is the obligation to include a picture of the product and to extend this obligation to all products. In addition, manufacturer information must already be provided in certain areas.
The online offer must contain the following information:
- Name, registered trade name or registered trade mark of the manufacturer as well as postal address and e-mail address for contact.
- If the manufacturer is not established in the EU, the name, postal address and e-mail address of the person responsible.
- Information identifying the product, including an image, the type of product and other product identifiers.
- Warnings or safety information in a language easily understood by the consumer, as determined by the Member State in which the product is sold. This information must be included on the product, on the packaging or in an accompanying leaflet.
In addition, the manufacturer must immediately report accidents caused by his product to the competent authorities via the Product Safety Business Alert Gateway (Art. 20). Importers and distributors who become aware of such an accident must inform the manufacturer immediately.
Obligations for online marketplaces
In addition to the requirements for distance selling, there are also specific obligations for providers of online marketplaces. Art. 22 of the GPSR sets out extensive obligations for these marketplaces.
Online marketplaces must design their platforms or online interfaces in such a way that traders can provide the following information for each product and that this information is easily accessible to consumers:
- The name, registered trade name or registered trade mark of the producer and the postal address and email address to contact them.
- If the producer is not established in the EU, the name, postal address and e-mail address of the person responsible.
- Information to identify the product, including a picture, the type of product and other product identifiers.
- Warnings or safety information in a language easily understood by consumers, as determined by the Member State in which the product is sold. This information must be provided on the product, on the packaging or in a leaflet.
In addition, online marketplaces must suspend the offer of traders who frequently offer products that violate the Product Safety Regulation for an appropriate period of time following a warning (Art. 22 para. 11).
In addition, providers of online marketplaces must register with the Product Safety Business Alert Gateway and store the details of their central point of contact there. They must ensure that they have internal procedures in place to ensure product safety in order to fulfil the requirements of the regulation quickly. In the event of a recall or if consumers require information on the safe use of a product, all affected consumers must be identified and notified immediately. Providers of online marketplaces that collect personal data from their customers use this information for recalls and safety warnings (Art. 35). Recall notifications are made in the form defined in Art. 36.
Stricter rules for product recalls
As already mentioned in the previous section, the rules for product recalls are becoming stricter and more comprehensive. If a product has to be recalled, all affected consumers must be informed immediately. This applies to manufacturers, importers, retailers and online marketplaces. They must have access to all available data in order to contact the affected customers, for example via customer loyalty programmes or registered personal data (Art. 35 para. 1 GPSR). If not all consumers can be reached directly, all available information channels, including social media, must be used. Where possible, recalls should not be publicised in order to avoid panic.
The GPSR specifies in Art. 36 Para. 2 how a product recall is to be carried out. The EU Commission will draw up a standard form for product recall notifications.
This recall notice must contain the following information clearly and unambiguously:
- The heading ‘Product Safety Recall’.
- A detailed description of the recalled product, including a picture, name, brand and batch or serial numbers.
- Information about when and where the product was sold.
- The notice must be available in the language or languages of the country where the product was sold.
Words such as ‘voluntary’, ‘precautionary’ or similar, which could weaken the recall, are not permitted. It is also not permitted to state that no accidents have been reported to date.
What are the penalties for non-compliance?
Companies that do not comply with the new provisions of the Product Safety Regulation will face significant penalties. The member states are obliged to issue corresponding regulations in order to penalise infringements effectively. These sanctions must be effective, proportionate and dissuasive.
In Germany, the exact sanction regulations have not yet been fully enacted, but there are already initial drafts. The Federal Ministry of Labour and Social Affairs has published a draft bill to amend the Product Safety Act and other product safety regulations. This draft stipulates that breaches of distance selling obligations (Art. 19 GPSR) will be treated as an administrative offence. These offences can be punished with a fine of up to €10,000 (Section 29 (2) No. 29 ProdSG-E).
The market surveillance authorities of the federal states are responsible for monitoring compliance with the regulations and penalising infringements. Even now, labelling violations of specific product law are often the reason for warnings. With the new GPSR, companies are not only threatened with a warning in the event of violations, but also with prosecution by the authorities and severe fines.
In order to avoid sanctions for violations of the Product Safety Regulation, elio offers comprehensive support for the legally compliant presentation of your products in online shops or marketplaces. For example, we develop interfaces that enable retailers to correctly and efficiently transmit all required information to online marketplaces. We also advise you on how to optimise the presentation of product information and warnings in order to comply with legal requirements. With elio, you are ideally equipped to successfully implement the new requirements of the GPSR and legally protect your company.
Conclusion: time to act!
The introduction of the new Product Safety Regulation brings with it a host of new requirements and obligations for companies in e-commerce. It is important that companies act in good time and adapt their processes accordingly in order to avoid infringements and possible sanctions.
The clock is ticking and compliance is crucial to maintain customer trust and avoid legal consequences. With elio at your side, you can ensure that your company fulfils the new requirements and acts in compliance with the law. Let's work together to ensure that your company navigates successfully and safely through the new challenges of GPSR.