From 13 December 2024, the EU’s General Product Safety Regulation (GPSR) adds stringent compliance obligations to businesses selling goods that are intended for consumers living in the EU and Northern Ireland. Many small UK sellers are adversely affected by the changes.
The GPSR replaces the EU’s General Product Safety Directive (GPSD). The new regulation aims to better protect consumers in the EU and Northern Ireland from the sales of goods that are sub-standard or dangerous.
GPSR covers all non-food products, such as toys, electronics, furniture, textiles, art and crafts. There are exemptions and exceptions and as we note, below, there is widespread confusion over exxemptions for art and craft products.
- The new rules apply to goods that are placed on the market on or after 13 December 2024 and affect those who sell repaired, used and reconditioned products as well as new ones.
- Businesses need to ensure that a product complies with the general safety requirement prescribed in the regulation before it is placed on the market.
Requirements include:
- Carrying out internal risk assessments.
- Compiling and retaining technical documentation.
- Ensuring that products are traceable in a way that is visible and accessible to consumers. This may mean using a batch or serial number.
- Having a named point of contact on product safety, known as the ‘EU Responsible Person’.
- Appointing a ‘responsible economic operator’ who is established in either the EU or Northern Ireland.
A responsible economic operator is responsible for:
- Verifying the completeness of a product’s technical documentation.
- Verifying that the product itself includes sufficient safety information.
- Co-operating with Market Surveillance Authorities through sharing data and reporting safety risks.
A responsible economic operator may be the manufacturer, the importer, an authorised representative (appointed by the manufacturer to act on their behalf), or a fulfilment service provider.
Exceptions apply for the supply of certain goods, including:
- Food.
- Animal feed.
- Medicinal products.
- Living plants and animals.
- Antiques.
- Products that are intended to be repaired or reconditioned prior to being used, where they are clearly marked as such when being sold.
Existing products
- The new rules do not appply to products that were already available for sale on the EU or NI market before 13 December 2024. They remain exempt from the new EU regulations, providing those products comply with the UK's General Product Safety Regulations 2005.
Comment on impacts
- These new regulations apply to a wide range of business including Online retailers and makers who are running crafting 'Side-Hussles'.
- The new requirements present a onerous hurdle for many small businesses: a fact noted on many online forums.
- The major issue is the requirement to appoint a ‘responsible economic operator’ who is established in either the EU or Northern Ireland, this means that many UK businesses are now ceasing to sell to both NI and the EU.
- Providers of online marketplaces are not in scope of the Market Surveillance Regulation.
Confusion for online sellers, artists and makers
The Arts Council England notes that there is some confusion over listings, for example, wool is an animal produced product, therefore will items made in wool be exempt. Likewise the description of antiques includes some art works. It also notes that "GPSR also adds more responsibility to online marketplaces such as Ebay, Amazon, Etsy and others. If you are listing a craft product on an online marketplace expect to be able to supply your safety information and details of your Responsible Person."
Folksy, the blog for Modern British Craft says "our current understanding is that this legislation applies to most handmade products and artworks."
Online market place Ebay says The GPSR applies to non-food consumer products and extends to new and second-hand products, as well as products that are repaired, reconditioned, or recycled.
Other news: ending fake reviews
The Competition and Markets Authority (CMA) is consulting on draft guidance on the protection from unfair trading provisions in the Digital Markets, Competition and Consumers (DMCC) Act 2024. This is a separate issue but of interest to online sellers.
Useful guides on similar topics
Side-Hussles & Tax
Do I need to pay tax on my side-hustle income? Is a side-hustle taxable? Is there a new side-hustle tax? Do I need to register for tax when I sell on eBay, Vinted or Etsy etc?
Online Selling
What are the tax implications of being an online seller? When does a hobby become a business? What is a side hustle? What expenses can online sellers claim for tax purposes? Are there special rules for taxing income? What are the VAT rules for online sellers?
Tax rules for different trades and professions
How are different types of business taxed? What special rules apply to different types of business income and expenses? What about VAT? We summarise the different rules for taxing income and expenses of a large selection of different trades, professions and vocations.
External link
UK Guidance: EU Regulation on General Product Safety (2023/988)
