Big changes are coming to product liability law for companies doing business in the EU.
On May 23, the European Commission issued a new General Product Safety Regulation aimed at comprehensively reforming EU product safety rules.
The new rules aim to implement new requirements for EU product launches, reviews and online markets.
Big changes are coming to product liability law for companies doing business in the EU. After more than a decade of reform proposals, on 23 May the European Commission, the EU’s independent executive arm, published the new General Product Safety Regulations (GPSR) in the Official Journal. As a result, the new GPSR repeals and replaces the previous General Product Safety Directive 2001/95/EC.
Although the text of the new regulation was adopted by the European Parliament in March 2023 and by the European Council on 25 April 2023, this official publication sets in motion the implementation timetable for the extensive reforms set out in the new GPSR. The purpose of the GPSR is to “improve the functioning of the internal market while ensuring a high level of production of consumer goods” and “to establish basic rules for the safety of consumer goods placed or made available on the market.”
The new GPSR will come into force on June 12, 2023, with a transition period of 18 months until the new rules come into full force on December 13, 2024. The new GPSR represents a major reform of pre-existing EU rules. European Union.
A full analysis of the new GPSR will follow, but here is an overview of what product manufacturers doing business in the EU need to know.
Under the new GPSR, manufacturers must notify authorities of accidents caused by their products through the SafeGate system, the European Commission’s online portal for reporting suspected hazardous products. The old GPSR had no threshold for such reporting, but the new GPSR sets the trigger as follows: “Incidents, including injuries, associated with the use of a product that results in the death of a person or has a permanent or temporary serious adverse effect on his or her health and safety Others physical impairment, disease and chronic health consequences.”
Under the new GPSR, these reports must be submitted “immediately” after the product manufacturer becomes aware of the incident.
Under the new GPSR, for product recalls, manufacturers must offer at least two of the following options: (i) refund, (ii) repair, or (iii) replacement, unless this is not possible or is disproportionate. In this case, only one of these two remedies is permissible under the GPSR. The refund amount must be at least equal to the purchase price.
The new GPSR introduces additional factors that must be considered when assessing product safety. These additional factors include, but are not limited to: risks to vulnerable consumers, including children; differential health and safety impacts by gender; the impact of software updates and product forecasting features;
Regarding the first point, the new GPSR specifically states: “When assessing the safety of digitally connected products that may impact children, manufacturers must ensure that the products they place on the market meet the highest safety standards in terms of safety, security, and safety.” “Well thought out confidentiality that is in the best interests of the child. ”
The new GPSR requirements for non-CE marked products are intended to bring the requirements for these products into line with those for CE marked products. In the European Union, the letters “CE” mean that the manufacturer or importer certifies that the product meets European health, safety and environmental standards. The new GPSR also places stricter labeling requirements on products that do not carry a CE mark.
Under the new GPSR, online offerings and products sold on online marketplaces must contain other warnings or safety information required by EU product legislation, which must be affixed to the product or its packaging. Proposals must also allow the product to be identified by indicating the type, lot or serial number or other element that is “visible and legible to the consumer or, if the size or nature of the product does not permit, on the packaging or the required information is provided in documentation accompanying the product. In addition, the name and contact details of the manufacturer and the responsible person in the EU must be provided.
In online markets, other new commitments include creating a point of contact for market regulators and consumers and working directly with authorities.
While the original legislative proposal provided for a minimum maximum fine of 4% of annual turnover, the new GPSR leaves the fine threshold to EU member states. Member states “will lay down rules on penalties applicable to violations of this Regulation, impose obligations on economic operators and online market providers and take all necessary measures to ensure their implementation in accordance with national law.”
Fines must be “effective, proportionate and dissuasive” and member states must notify the Commission of the rules regarding these penalties by 13 December 2024.
The new GPSR, in particular, provides that consumers “shall have the right to exercise, through representative actions, their rights related to the obligations assumed by economic operators or providers of online markets in accordance with Directive (EU) 2020/1828 of the European Parliament and of the Council: “In other words, class action lawsuits for GPSR violations will be allowed.
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