The GPSR 2024 was created primarily to protect buyers using e-commerce platforms. Its purpose is also to standardize the operating conditions for companies in the online sales industry. What changes can entrepreneurs expect? How will the new regulations affect doing business in this industry? Read this article for answers to these questions and more.
What is the GPSR 2024 and why was it introduced?
The General Product Safety Regulation (GPSR) 2024 was adopted by the European Parliament at the end of last year to ensure a higher level of consumer protection and to unify the rules for companies operating on the European Union market. It applies to all products sold in the EU, with the exception of food, medicines, and antiques.
The main goal of the new legislation is to remove potentially hazardous products from the market and ensure greater safety for consumers. It also requires manufacturers, distributors, importers, and e-commerce platforms to thoroughly inspect products before they are sold. These EU requirements oblige sellers to cooperate with regulators, track items, and provide information about their safety.
Thanks to the GPSR 2024, shoppers can be confident that the products available on the EU market are safe. Businesses, in turn, will benefit from clear rules of the road that promote fair competition.
Who is affected by the new GPSR 2024 regulations?
The above-mentioned Regulation applies to all companies that place products on the European Union market, both in the traditional model (sales in brick-and-mortar stores) and online (Internet sales). It must be followed by:
- Manufacturers – responsible for ensuring that products meet safety standards and are appropriately labeled.
- Importers – who place products on the market from outside the EU and are responsible for ensuring that they comply with EU regulations.
- Distributors – including both retailers and e-commerce platforms offering products from other brands, who are required to verify their safety before selling them.
- Online marketplaces – which enable the conclusion of distance contracts; they are obliged to monitor products for compliance with the Regulation and to cooperate with regulatory authorities.
The GPSR covers nearly all products offered to consumers, making its application a broad requirement for companies in a variety of industries, with an emphasis on e-commerce.
What obligations does the GPSR 2024 impose on vendors?
The GPSR 2024 places a number of obligations on sellers to ensure the safety of products offered to consumers. The key requirements include:
Product compliance verification
Sellers must verify that manufacturers and importers have complied with the GPSR requirements, including:
- Marking products with a batch, series, or type number.
- Providing manufacturer details, such as the name, registered trade name, or full name, and contact information (email or postal address).
- Supplying instructions and safety information in a comprehensible language.
Preventing the sale of non-compliant products
If a seller discovers that a product is non-compliant, they cannot make it available on the market until the manufacturer corrects the non-compliance.
Hazardous product notification
In the event that a non-compliance or hazard is discovered:
- The seller must notify the manufacturer/importer.
- The seller cooperates to remove the product from the market or repair it.
- The seller reports non-compliance/hazard incidents to regulatory authorities through the Safety Business Gateway platform.
Information obligations in online sales
Product listings must include:
- Manufacturer details (name/company name), registered trade name, or registered trademark of the manufacturer, along with contact details (postal or email address).
- Manufacturer details (name of the responsible person or company name) and the address (email and postal address of the responsible person for the seller’s company), in the case of companies based outside the EU.
- Information enabling product identification (e.g. photos, markings, type, or other identifiers).
- Warnings or safety information appearing on the product packaging or in an accompanying document.
Cooperation with regulatory authorities
Sellers are required to provide timely information and comply with regulatory decisions regarding product safety.
It is important for entrepreneurs operating in the e-commerce sector to note that the new Regulation obliges them to provide very detailed information about the product on their sales websites in the space dedicated to its description.
However, it is important to remember that the Regulation protects both sides of online sales – the customer and the seller. These requirements are designed to eliminate product risks and increase consumer confidence in sellers. The greater it is, the better the image of the online store in the eyes of buyers.
E-commerce platforms and the GPSR 2024 – everything you need to know about the changes
The GPSR 2024 significantly changes the way e-commerce platforms operate, introducing additional requirements for product safety and cooperation with regulators. In addition to the above-mentioned obligations applicable to sellers within the EU, e-commerce entrepreneurs will be required to make additional changes to their activities. The key changes include:
Monitoring products offered on platforms
Platforms must actively verify that products added by sellers comply with EU safety requirements. Potentially hazardous products must be identified and removed.
New reporting requirements
Platforms need to adapt their interfaces to display detailed product information such as:
- Details of the manufacturer and responsible person outside the EU.
- Product identifiers (e.g. photos, batch numbers).
- Safety warnings and instructions.
SafetyGate portal registration
E-commerce platforms must register with SafetyGate to quickly report product non-compliances and share information about their safety.
Handling of notifications and requests
Platforms are required to respond to regulatory notifications within a maximum of 3 business days. This includes removing or blocking listings of products deemed unsafe.
Point of contact for regulatory authorities
Platforms must designate a point of contact for communication with regulators on product safety issues.
Internal security procedures
Platforms must develop internal procedures to ensure that the requirements of the Regulation are met quickly and efficiently.
Authorization of data scraping by regulators
Platforms must provide data necessary to monitor product safety upon request by regulators.
These changes, in addition to the aforementioned increased consumer protection and removal of hazardous products from the e-commerce marketplace, are driving increased investment in new compliance systems and processes. The new EU regulation therefore imposes new financial obligations on businesses involved in online sales. This can be a motivation to look for responsible and trustworthy support in the area of e-commerce consulting, as failure to comply or improper compliance with the new EU regulations can have serious consequences.
Legal consequences for those who fail to comply with the GPSR
Companies that fail to comply with the GPSR 2024 may face serious legal consequences, including:
Financial penalties
A company’s violation of the GPSR can result in significant fines. The amount may depend on the nature, severity, and scope of the violation, as well as the size of the online store being held liable.
Request to withdraw products from sale
If a product is found to pose a risk to consumer safety, regulators can order a company to withdraw it from the market and inform purchasers of the risk.
Prohibition of the sale of certain products
Products that do not meet the requirements of the Regulation may be prohibited from further sale or distribution.
Obligation to cooperate with regulatory authorities
Companies that fail to comply with their duty to cooperate with regulatory authorities (e.g., failing to provide the required product information in a timely manner) may be subject to additional penalties and their activities may be subject to special supervision.
Damage to reputation
Failure to comply with the GPSR and the associated penalties can have a significant impact on a company’s image and undermine the confidence of buyers and business partners.
Court and/or administrative proceedings
Sellers who fail to comply with the GPSR 2024 may also be subject to additional legal action, including administrative or court proceedings by regulators or consumers who have been harmed by the use of hazardous products.
These consequences are intended to encourage companies to fully comply with the new regulations and to prioritize consumer safety in their business processes.
Hicron’s support for the changing e-commerce environment
The GPSR 2024 has generated considerable discussion and concern among business owners, especially those who provide their services and sell online. The new regulations are a major challenge for e-commerce operations. Faced with these changes, which are not voluntary but mandatory, it is often unavoidable to seek the support of trusted advisors to guide the company through each stage of the transformation. At Hicron, we have created a team of experts dedicated to e-commerce projects, whose mission is to help entrepreneurs face such challenges. With nearly two decades of experience and active operation on the market and a wide range of small, medium, as well as global projects, we know the business needs of our clients very well. We navigate them safely through all the changes that the market dictates. Do you run an e-commerce website and seek innovations tailored to your business needs? Contact us!
Sources:
https://linkekulicki.pl/rozporzadzenie-gpsr-zmiany-dla-e-commerce/
(accessed 20/01/2025)
(accessed 20/01/2025)
