On the 13th December 2024, the General Product Safety Regulation (GPSR) directive from the EU became enforceable. But what is GPSR and why does it matter for you and your business?

What is GPSR?

GPSR was introduced by the EU as a protection against the recent influx of unsafe goods from third-countries (those outside the EU and the European Economic Area (EEA)) , in particular aimed at goods being imported from China from large organisations such as Temu. The new GPSR regulations are designed to better protect consumers in the EU from potentially unsafe products being sold online or offline.

The rapid rise of e-commerce over the previous decade and the advent of drop shipping has made it increasingly common for professional looking websites to trade in unsafe and substandard goods. As such the new GPSR regulations which became enforceable on the 13th December 2024 are designed to update and replace the EU’s old directive relating to product safety, the General Product Safety Directive (GPSD).

When does GPSR go into effect?

GPSR came into effect on 13th December 2024. This means that all traders from the United Kingdom selling to the EU must ensure any products placed on the market comply with the new GPSR requirements. If your products do not comply with GPSR regulations they must be withdrawn from the markets of the EU and Northern Ireland or you may face penalties such as fines.

What is covered by GPSR?

GPSR applies to all consumer goods and digital products on the EU and Northern Irish markets. These new regulations also include CE marked goods. All businesses are affected, whether a one-man-band or global trans-national corporation.

Does GPSR apply to the UK?

Whilst GPSR does not apply to goods being placed on the markets of England, Scotland, Wales and the Channel Islands - the new regulations do apply to any goods placed on the Northern Irish market.

GPSR also applies to any UK business that wishes to sell their goods to the EU or Northern Ireland.

What does it mean for Northern Ireland?

Due to the last Conservative government’s Brexit deal, any business exporting goods to Northern Ireland must comply with EU regulations such as GPSR. This is because it enables freedom of movement to continue between Northern Ireland and the Republic of Ireland, avoiding a hard border between the two. The effect of this has been substantial, many small businesses from the UK have made the difficult decision to stop trading with Northern Ireland.

What will GPSR mean for my business?

GPSR update the requirements on the manufacturers, importers, and distributors of products into the EU and NI by introducing new obligations around risk assessments, documentation and labelling requirements. On top of this, your business will have to find a named representative within the EU to act as your ‘point of access’. These representatives will act as guarantors of the safety of your products and be responsible for storing information regarding your products for a period of 10-years.

If your business does not comply with the new GPSR regulations you could face a fine.

Why is it such a big deal for British businesses specifically?

The UK’s current legislation for product safety remains based on the EU’s old directive, the aforementioned GPSD. The introduction of the GPSR means that British legislation is now lagging behind our European counterparts, the divergence in regulation between the EU and UK makes trading across borders even more complex for you and your business.

Many businesses in the UK, especially SMEs and sole traders are debating whether to continue selling to the EU and Northern Ireland given the increased administrative and fiscal burden, especially regarding finding a legitimate ‘point of access’. For some small businesses there is simply not the time nor the confidence in emerging agencies to justify the continuation of their trade with the EU. Worryingly as 60% of the UK’s workforce is employed by SMEs the knock on effect of reduced trade with the EU thanks to GPSR could have profound economic and employment effects.

What does it mean for UK consumers?

Consumers in Northern Ireland are likely to see a reduction in the availability of goods being sold by British traders, for those in England, Scotland, Wales, and the Channel Islands there may be inflationary pressure as British businesses aim to recoup lost export led profit with higher domestic prices.

What can be done to make things better?

Many British businesses felt unprepared for the changes to GPSR on the 13th of December, it is therefore important that the Government provide more extensive advice and guidance, in particular relating to ‘point of access’ contacts within the EU. Whilst it is unlikely that the directive itself will be changed, it is important that the Government considers other measures to lessen trade barriers for you and your business.

For example, to reduce trade barriers, the UK Government could use the recently introduced Product Regulation and Metrology Bill to bring product safety regulation in the UK closer to the EU and Northern Ireland. By removing regulatory divergence and aligning with the EU, the Government would enable business’ like yours to trade more freely with our largest and closest trading partner.

In the longer term, the Government could utilise the relationship reset with the EU and the upcoming 2026 Brexit deal review to agree to a policy of beneficial regulatory alignment between the EU and UK. The importance of regulatory alignment is explored by the UK Trade and Business Commission in their publication; Trading our way to prosperity.