A new European regulation, the General Product Safety Regulation (GPSR), is imposing strict requirements on products sold within the EU market. This has led many online stores and marketplace sellers in the United Kingdom to halt sales to EU customers, citing challenges in meeting the new rules.
The issue, initially highlighted by journalist Chris Dawson on ChannelX, reveals the growing strain on UK merchants who rely on EU trade. Dawson describes the regulation as having a “massive and underexposed” impact on businesses.
What is the General Product Safety Regulation?
The GPSR, introduced to ensure consumer safety across the EU market, applies to all non-food consumer products sold both online and offline. It mandates that products originating outside the European Union can only be sold if a designated economic operator within the EU is responsible for the product’s safety. This operator serves as a key contact for compliance, safety checks, and addressing potential risks.
The regulation aims to tackle safety challenges posed by direct imports and the surge in online sales from non-EU countries. According to the European Commission, the rules prioritize enforcement to protect consumers, with added measures to ensure accountability for unsafe products.
Impact on UK Sellers
For many UK businesses, the new regulation presents significant hurdles. Smaller sellers, particularly those operating through online marketplaces, struggle to establish compliant economic operators within the EU. Without sufficient arrangements, many have opted to stop selling to European customers altogether.
This decision comes despite the EU being a crucial market for UK merchants. For online sellers who rely on cross-border trade, the inability to meet GPSR requirements could mean substantial revenue losses.
Enforcement and Consumer Focus
The GPSR includes a stronger focus on enforcement, with authorities aiming to ensure compliance among all sellers operating within the EU. Ecommerce Europe, an industry group representing digital commerce across the continent, has welcomed the emphasis on enforcement.
The regulation also introduces greater protection for EU consumers, including:
- Easier processes for reporting safety concerns.
- A “right to remedy” for individuals who purchase unsafe products.
These measures are expected to enhance consumer confidence but add additional compliance burdens for businesses outside the EU.
What Sellers Need to Know
Businesses looking to continue selling to EU customers must appoint an economic operator, such as a distributor or fulfillment provider, within the EU to take responsibility for product safety. Failure to comply could result in blocked shipments, fines, or removal of listings from online platforms.
The Path Forward
For UK sellers facing challenges under the GPSR, support services like DMSMatrix can help streamline compliance and maintain cross-border operations. With tailored logistics and warehousing solutions, businesses can establish necessary arrangements within the EU while continuing to serve European customers.
The new rules mark a significant shift for ecommerce, emphasizing product safety and consumer rights in the EU. For UK merchants, navigating these changes will be key to maintaining their presence in the European market.