The GPSR Regulation in Your E-Commerce: Everything You Need to Know

In December 2024, significant changes regarding consumer product safety will come into effect in the European Union market. The Regulation (EU) 2023/988 of the European Parliament and of the Council, dated May 10, 2023, known as the GPSR (General Product Safety Regulation), will replace the Directive 2001/95/EC, which has been in place for over two decades. These new regulations address the dynamic growth of online commerce, digitalization, and emerging technological challenges. With time running out to prepare for these changes, understanding the e-commerce landscape’s inevitable transformation is crucial.

GPSR – Product Safety in a New Reality

In recent years, the consumer product market has undergone unprecedented change. Digitalization, technological innovations, and the increasing popularity of online commerce have necessitated an update to product safety regulations. The existing rules have proven insufficient to effectively address contemporary challenges, such as identifying responsible entities in the supply chain or the lack of standardized procedures for recalling unsafe products.

The new regulations aim to improve safety, particularly for consumers, enable a more efficient process for removing hazardous products from the market, and contribute to the harmonization of laws across the European Union. Ultimately, these measures should facilitate easier operations for international businesses and support their expansion into foreign markets.

GPSR – What Products Does It Cover?

Scope of Application

The GPSR applies to nearly all consumer products introduced to the EU market, whether sold in traditional brick-and-mortar stores, online shops, or marketplace platforms. This is particularly important for businesses operating in the e-commerce sector, which must adapt their processes to meet the new requirements.

The regulation covers new and used products and repaired or refurbished items, provided they are ready for use. It does not apply to products requiring repair before use and is explicitly marked as needing repair.

Products Excluded from GPSR

The regulation does not apply to the following products:

• Medicinal products intended for human or veterinary use;
• Foodstuffs;
• Animal feed;
• Living plants and animals, genetically modified organisms, and products derived from plants and animals directly related to their future reproduction;
• Animal by-products;
• Plant protection products;
• Equipment used within transport services (for movement or travel);
• Aircraft;
• Antiques.

Who Is Affected by the GPSR Obligations?

New Roles and Responsibilities

The GPSR extends the range of entities responsible for product safety, including:

• Manufacturers, importers, distributors, and representatives of manufacturers;
• A designated Responsible Person;
• Marketplace platforms that facilitate the sale of products covered by the regulation.

Responsible Person

Under the GPSR, a Responsible Person is an entity based in the EU that is accountable for fulfilling specific tasks, including:

• Verifying the preparation of the EU Declaration of Conformity or performance specifications and technical documentation, ensuring their storage for the required period, and making them available to supervisory authorities;
• Providing any information and documentation necessary to demonstrate product compliance upon a justified request from supervisory authorities in the appropriate language;
• Notifying supervisory authorities of suspected risks posed by a product;
• Cooperating with supervisory authorities.

Key Responsibilities under the GPSR

The General Product Safety Regulation (GPSR) imposes various obligations on entities involved in a product’s supply chain. These responsibilities extend beyond the market entry point and continue throughout the product’s lifecycle.

Responsibilities of Manufacturers

Manufacturers must ensure their products are safe at every stage of their lifecycle. Appropriate documentation must be prepared for each product, including safety information and a risk assessment. The risk assessment results help identify any additional documents that need to be prepared for specific products.

Additionally, manufacturers must monitor the safety of their products on the market. This involves establishing a response mechanism for reports concerning the product, whether these come from consumers, importers, distributors, or the designated responsible person.

Proper product labeling is an integral aspect of safety verification. This not only involves providing already required data but also emphasizes accurate batch numbering. This ensures efficient identification of individuals who may have received a potentially hazardous product from a particular batch, enabling prompt warnings.

Responsibilities of Importers

The responsibilities of importers differ from those of manufacturers, primarily focusing on verifying that the manufacturer has adequately ensured product safety and providing safety and risk-related information. This includes:

• Supplying consumers with all information required by the new regulations.
• Reporting potential risks to the manufacturer.

It is important to note that the obligation to indicate the importer on the product has been in effect for some time and will be more rigorously enforced with the implementation of the GPSR.

Responsibilities of Sellers (Distributors)

While the GPSR might seem to primarily affect manufacturers and importers, it also imposes numerous requirements on sellers.

Sellers must verify product safety and ensure the manufacturer has provided the necessary documentation for the goods they sell. A product may only be introduced to the market if:

• It is accompanied by the appropriate documentation.
• There is an entity based in the EU, such as a responsible person, who takes responsibility for the product.

Sellers must also update their online listings to comply with all requirements for presenting product safety information. In many cases, this may involve modifying the interface of their online store to meet these new standards.

Furthermore, sellers must report potential risks and actively participate in corrective actions. Similar to importers, the mechanism for communicating safety and risks must function concerning both manufacturers and consumers. Sellers must also be prepared to collaborate with supervisory authorities, which may require them to provide relevant documentation.

Consequences of Non-Compliance with GPSR

Although the regulation is directly applicable in all EU member states, it does not specify penalties for non-compliance or violations of its provisions. Instead, each member state must establish such sanctions through its national legislation.

Poland’s General Product Safety Act has yet to be enacted, but a draft has been published proposing penalties of up to 1,000,000 PLN for non-compliance.

Summary

The GPSR introduces significant challenges. Adapting to the new regulations requires collaboration at every stage of the supply chain. However, it also presents an opportunity to build customer trust by emphasizing transparency and product safety. This allows businesses to view the upcoming changes not merely as an onerous obligation but as a chance to strengthen their market position in the fast-evolving e-commerce landscape.