If you’re a small business based in the US and selling to customers in the European Union (EU) through platforms like Shopify and WooCommerce, it’s difficult to stay updated on regulatory changes that could impact your business. With the upcoming Regulation (EU) 2023/988, commonly known as General Product Safety Regulation (GPSR), set to take effect December 13, 2024, there are several new requirements you’ll need to meet to continue selling in the EU market.
Please note: While I want to review this topic since it’s relevant to many of our clients, I also want to be clear that I am not a lawyer, Sprucely Designed, LLC is not a law firm, and nothing in this post should be considered legal advice. We strongly recommend that you speak to an attorney familiar with EU regulations to ensure your business is fully compliant.
Overview of the New Regulation
The GPSR introduces several key changes aimed at enhancing product safety for consumers in the EU. This regulation applies to most all consumer products sold within the EU.
Key requirements include:
- General Product Safety Compliance: All products must meet stringent safety standards throughout their lifecycle. You must ensure that products are safe for their intended use and do not pose risks under normal or reasonably foreseeable conditions.1
- Online Sales Compliance: When selling online to EU customers, your products must be properly identified and accompanied by the necessary safety information. Your listings should comply with EU standards for product identification, labeling, and consumer information.2
- Obligations for Economic Operators: Manufacturers, importers, and distributors must ensure the products they sell are safe and compliant with the regulation. This includes maintaining up-to-date technical documentation and cooperating with EU market surveillance authorities.3
- Representative in the EU: Non-EU sellers are required to appoint a representative within the EU to handle compliance tasks, including maintaining product safety documentation and liaising with authorities.4
- Consumer Notification and Recalls: If a product needs to be recalled, you must notify affected customers directly. This involves using customer data from your Shopify or WooCommerce store to ensure timely communication and providing remedies such as repair, replacement, or refund.5
Specific Considerations for US Small Businesses
If you’re a small business crafting handmade goods or manufacturing apparel, these regulations might require some adjustments in how you manage your products and listings. The EU has provisions that scale obligations according to the size and nature of the business, so it’s crucial to understand what applies to your specific situation.
- SME (Small Business) Support: The EU provides tailored guidelines and simplified processes to help small and medium-sized enterprises (SMEs) comply with these regulations.6
- Product Categories with Special Considerations: Some products, such as antiques or services, may be exempt from certain regulations. However, it’s essential to ensure these products are clearly labeled to avoid compliance issues.7
- Transitional Period: Products that were placed on the market before December 13, 2024, and comply with the previous directive (Directive 2001/95/EC) may be able to continue to be sold during a transitional period while you work to meet the new GPSR requirements.8
What Should You Do Next?
As a small business owner, here are a few steps to consider to ensure your products are compliant with the new regulations:
Conduct a Risk Assessment
Take the time to thoroughly review each of your products and identify any potential safety issues. A risk assessment involves looking at how the product is intended to be used and considering any reasonably foreseeable misuse that could pose a hazard. This step is particularly important for products that involve digital components or chemicals, as these may have specific risks that need to be managed. Conducting a risk assessment not only helps you meet regulatory requirements but also enhances the overall safety and reliability of your products.
Update Your Documentation
As a manufacturer, keeping your technical documentation up to date is a critical part of compliance. This includes maintaining records that demonstrate your product’s adherence to EU safety standards. Key documents include risk assessments, technical specifications, and compliance records with relevant EU directives, such as CE marking requirements. Additionally, you should provide clear and understandable instructions and safety information with your products, making sure they are easily accessible to consumers in the EU.
Review Your Online Listings
Ensure that your product listings on platforms like Shopify and WooCommerce are fully compliant with EU standards. This includes providing accurate and detailed product descriptions, clear safety warnings, and complete manufacturer information. Listings should also include any necessary compliance markings, such as the CE mark, if it’s a regulated product.
For more detailed information on the specific standards and requirements for online product listings, check out the Your Europe: Product Safety guide provided by the European Commission.
If you’re unsure how to update your site to meet those compliance requirements, I can help! Once you’ve identified the specific compliance needs for your listings, feel free to reach out, and we can schedule a meeting to go through the necessary changes together.
Appoint an EU Representative
For businesses based outside the EU (and if you’re reading this, I’m betting you are), appointing a representative within the EU is a legal requirement under the new rules. According to Article 16 of the GPSR, this representative will be responsible for maintaining compliance documentation and acting as your liaison with EU authorities. They must be established within the EU and will serve as your local point of contact, ensuring that any regulatory inquiries or issues are handled efficiently.
This is likely to be one of the more significant expenses and challenges for small businesses, particularly those without an existing presence in the EU. The regulation makes it clear that without an EU-based representative, you won’t be able to legally sell your products in the EU market.
If opening an office in the EU isn’t feasible (which I know it won’t be for most of you), there are services and agencies that specialize in acting as an EU representative for businesses like yours. These services typically offer compliance management, document storage, and communication with EU authorities as part of their package. While I don’t endorse any specific service, it’s worth researching and finding a service that aligns with your business needs and budget. If you already have a representative for GDPR compliance, they may also offer GPSR compliance.
If you’re unsure how to proceed, it may be helpful to consult with an attorney who specializes in EU regulations or reach out to your local Small Business Administration (SBA) office for guidance. These organizations can provide you with additional resources and advice tailored to your specific situation.
Share Your Feedback or Plans
The new General Product Safety Regulation (GPSR) is another in a chain of hurdles for small businesses to navigate when looking to sell to the EU. While I’m not an expert in this area, I’ve reviewed the regulation and wanted to surface these key points to help you navigate these changes. My goal is to provide you with the information you might need to start planning for compliance, but I encourage you to consult with an attorney or other professionals to ensure you’re fully covered.
If you spot any mistakes or have feedback on this post, please comment below. I’m eager to hear how clients and readers are handling this requirement.
Open questions
I didn’t touch on how marketplaces like Etsy, Amazon, eBay or others are approaching this new requirement. If you’re selling via those platforms, feel free to share any updates you hear from them.
If you’re working with an EU distributor, does that absolve you of these responsibilities?
I wrote this following a discussion in the Craft Industry Alliance private Facebook group and these were some of the questions raised there. If you know of any comprehensive resources that cover these or other questions, let me know.
Comment down below! 😊
Lastly, if you have a plan for this already, please share it in the comments. I’d love to know how different businesses are approaching these changes and what solutions you’ve found to manage this new requirement.
- European Parliament and Council of the European Union. Regulation (EU) 2023/988 of the European Parliament and of the Council of 10 May 2023 on General Product Safety, Recital 22. Accessed September 1, 2024. https://eur-lex.europa.eu/eli/reg/2023/988. ↩︎
- European Parliament and Council of the European Union. Regulation (EU) 2023/988 of the European Parliament and of the Council of 10 May 2023 on General Product Safety, Recital 21. Accessed September 1, 2024. https://eur-lex.europa.eu/eli/reg/2023/988. ↩︎
- European Parliament and Council of the European Union. Regulation (EU) 2023/988 of the European Parliament and of the Council of 10 May 2023 on General Product Safety, Article 7 and Recital 32. Accessed September 1, 2024. https://eur-lex.europa.eu/eli/reg/2023/988. ↩︎
- European Parliament and Council of the European Union. Regulation (EU) 2023/988 of the European Parliament and of the Council of 10 May 2023 on General Product Safety, Article 16 and Recital 39. Accessed September 1, 2024. https://eur-lex.europa.eu/eli/reg/2023/988. ↩︎
- European Parliament and Council of the European Union. Regulation (EU) 2023/988 of the European Parliament and of the Council of 10 May 2023 on General Product Safety, Article 11 and Recital 85. Accessed September 1, 2024. https://eur-lex.europa.eu/eli/reg/2023/988. ↩︎
- European Parliament and Council of the European Union. Regulation (EU) 2023/988 of the European Parliament and of the Council of 10 May 2023 on General Product Safety, Recital 41. Accessed September 1, 2024. https://eur-lex.europa.eu/eli/reg/2023/988. ↩︎
- European Parliament and Council of the European Union. Regulation (EU) 2023/988 of the European Parliament and of the Council of 10 May 2023 on General Product Safety, Recital 16. Accessed September 1, 2024. https://eur-lex.europa.eu/eli/reg/2023/988. ↩︎
- European Parliament and Council of the European Union. Regulation (EU) 2023/988 of the European Parliament and of the Council of 10 May 2023 on General Product Safety, Recital 105. Accessed September 1, 2024. https://eur-lex.europa.eu/eli/reg/2023/988. ↩︎
