Understanding the General Product Safety Regulation (GSPR): What Etsy sellers need to know

Published on December 15, 2024

Understanding the General Product Safety Regulation (GSPR): What Etsy sellers need to know

Sources:
https://www.etsy.com/seller-handbook/article/1093438529659?ref=handbook
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2023.135.01.0001.01.ENG&toc=OJ%3AL%3A2023%3A135%3ATOC

December 13, 2024
Note: GPSR took effect on December 13, 2024. This guidance will continue to evolve.The guidance on compliance for small and medium businesses and microenterprises is expected to be released in the near future by the European commission. Please check this page for updates.

The General Product Safety Regulation (GPSR) is aimed to ensure that products in European Union (EU) and Northern Ireland (NI) markets are safe and follow the specific safety guidelines. GSPR is replacing the old Directive 2001/95/EC to ensure safer consumer products.

The GSPR modernizes product safety rules for online selling and emerging technologies.

It aims to:

Enhance consumer safety and improve product recalls.
Set clear obligations for businesses (manufacturers, importers, and online sellers).
Cover gaps left by sector-specific safety regulations.

This regulation focuses on ensuring that only safe products reach EU consumers, whether sold online.

How does it impact online sellers?

Online marketplaces
- Platforms like Etsy must ensure listed products meet GSPR rules, so sellers will face increased scrutiny.
Direct EU sales
- Sellers outside the EU must appoint a representative in the EU to handle compliance and act as a contact point for authorities.

Products covered by the GSPR

The GSPR applies to most consumer products. Here are some examples:

General consumer products like Home goods, textiles, jewelry, toys, and other everyday items.
Products previously for professional use and Items that have migrated to the consumer market.
Any product targeted at EU consumers through websites, marketplaces, or direct sales.
Non-food consumer products
New and second-hand products
Second-hand products or products that are repaired, reconditioned or recycled products
Living plants
Animal by-products are materials of animal origin that people do not consume.

Products must meet safety standards under normal and foreseeable use, considering risks to vulnerable groups like children, older adults, and persons with disabilities.

Products excluded from the GSPR

Certain categories of products are already regulated under sector-specific laws and are excluded:

Medicinal Products: Includes medicines that undergo pre-market risk-benefit assessments.
Food and Feed: Covered by the EU’s food safety laws, except packaging or materials in contact with food.
Plant Protection Products: Pesticides and similar goods.
Aircraft and Specialized Equipment: Covered by aviation safety regulations.
Antiques and Collectibles: Items explicitly marketed as historical or collectible and not expected to meet modern safety standards.

Why should Etsy sellers care?

If you sell products to customers in the EU, even if your business is outside the EU, you must comply with the General Product Safety Regulation (GSPR). Not following these rules can lead to serious consequences, like fines, product recalls, or even being banned from selling in the EU. Platforms like Etsy may also increase their monitoring to ensure compliance.

For online sellers, your products are considered available in the EU market if you're actively targeting EU consumers. Here's what that means:

Targeting EU buyers: Your shop is seen as aiming for EU customers if you:
- Offer shipping to EU countries.
- Use EU languages (like French or German) in your shop or product descriptions.
- Accept EU currencies (like Euros) as payment.
- Use a domain name linked to an EU country.
What doesn’t count: Simply having your shop visible to EU buyers isn’t enough. To fall under EU rules, you need to take active steps—like the ones above—to market to EU customers.

Key requirements under GSPR

Here’s what Etsy sellers need to do to comply:

Ensure product safety

Products must be designed and tested for safety, considering risks like physical, mechanical, or chemical hazards.
Include warnings and instructions for safe use.

Traceability

Label products with information about the manufacturer, importer, or EU representative (name, address, and contact details).
Use digital solutions like QR codes for tracking.

Document safety

Maintain technical documentation proving product safety, including risk assessments and compliance records.
Be prepared to present this documentation if requested.

Accident and recall Reporting

Notify EU authorities promptly if your product causes harm.
Create a recall plan to inform customers and remove dangerous products from circulation.

Responsible person

Products covered under the GPSR must have an EU or NI- based “economic operator” as a “responsible person” in order to be placed on the EU or NI market. A responsible person can be one of the following, if based in the EU or NI:
The manufacturer:
- An importer, if the manufacturer is not established in the EU or NI
- An authorized representative mandated by the manufacturer
- A fulfillment service provider if the manufacturer, importer, and authorized representative aren’t based in the EU or NI
- Among Etsy’s obligations is to ensure traders are able to provide this information. (More information on economic operators can be found below and in Etsy’s Help Center article)

Listing information

Etsy’s responsibilities under the GPSR include enabling traders to provide the following information on their listings:
The name, registered trade name or registered trade mark of the manufacturer, as well as the postal and electronic address at which they can be contacted
Where the manufacturer is not established in the EU or NI, the name, postal and electronic address of the responsible person
Information allowing the identification of the product, including a picture of it, its type and any other product identifier; and
Any warning or safety information to be affixed to the product or to the packaging or included in an accompanying document, in a language which can be easily understood by consumers safety information as required by Union law. This could, for example, include instructions for safe use or safety risk warnings.

How to prepare for GSPR compliance as an Etsy seller

To comply with the General Product Safety Regulation (GSPR) when selling to EU markets, follow these steps:

1. Audit your products

Identify which items are covered by GSPR and ensure they meet EU safety standards (e.g., CE marking for applicable categories). Consider physical, chemical, and mechanical safety risks.

2. Add an economic operator

Designate and add an economic operator to your Etsy account under Shop Manager > Settings > Partners You Work With. This could be a manufacturer, importer, authorized representative, or fulfillment service provider. Include their name, address, and contact information.

3. Update product listings

Include manufacturer details, safety warnings, and usage instructions in your product descriptions. Ensure customers have access to all required safety information.
- You can use Listadum to bulk edit this information in all listings.

4. Label products for traceability

Provide clear labels with details of the manufacturer, importer, or EU representative. Use digital tools like QR codes for easier tracking and compliance.

5. Keep detailed records

Maintain documentation of product safety tests, materials used, risk assessments, and compliance certifications. Be prepared to share this information with authorities if needed.

6. Prepare for accidents and recalls

Have a plan to notify EU authorities and affected customers in case of a product safety issue. Use customer data to contact buyers and provide clear recall instructions.

7. Work with compliance experts

Consult with legal or regulatory professionals to verify your shop’s adherence to EU safety rules and address any uncertainties.

8. Stay updated

Monitor changes to EU regulations and updates from Etsy to ensure your shop remains compliant.

How to add an economic operator for selling in the EU

If you're a trader selling products into the European Union (such as a registered business or professional seller), you may need to designate and provide details for an economic operator to comply with EU regulations like the Digital Services Act.

Since compliance requirements can vary, it's a good idea to consult a legal expert to determine if this applies to your business. This is particularly important if you're unsure about the regulations or your obligations when selling to EU customers.

What is an economic operator?

Economic operators are entities responsible for ensuring product compliance with EU rules. Examples include:

Manufacturers
Importers
Authorized representatives
Fulfillment service providers

These operators act as key contacts for authorities and consumers within the EU and help manage compliance for your products.

How to add an economic operator to your etsy shop

Follow these steps to add your economic operator details:

Log in to Etsy.com and open the Shop Manager.
Navigate to Settings.
Select Partners You Work With.
Click Add Economic Operator.
Provide the name, address, and contact information of the economic operator you’re working with.
Click Save Operator to complete the process.You can update this information at any time by selecting the pencil icon next to the operator's details under Partners You Work With.

How does it affect Print-on-demand businesses?

GSPR impacts print-on-demand (POD) services by requiring sellers to ensure that all physical products, including custom-printed items, meet EU safety and labeling standards. Since POD sellers typically act as the brand owner of the products they sell, they may need to appoint an economic operator if selling to EU customers.

This includes providing clear traceability information, such as the manufacturer’s details, and ensuring product safety throughout the production and delivery process. Compliance adds an extra layer of responsibility for POD sellers, who must coordinate with their fulfillment partners to ensure all products meet regulatory requirements.

As an example: See the Printful page for “Unisex Lightweight T-Shirt | Gildan 980”

Printful added a section including Environmental qualities and characteristics along with GPSR information.

You can check the information for each product from this list

FAQs about GSPR for etsy sellers

Does GSPR apply if I’m based outside the EU?

Yes, GSPR can apply if you sell to customers in the EU or Northern Ireland. This includes sellers located outside the EU who offer products to EU buyers. Even if your shop is based in another country, GSPR covers items that are manufactured, imported, or distributed for EU consumers. If you target EU buyers through language, shipping, or payment options, you are likely required to comply. More guidance for small businesses is expected from the European Commission.

What happens if my product doesn’t meet GSPR requirements?

If your product fails to comply with GSPR, it may be classified as “dangerous,” which can lead to serious consequences:

EU or Northern Ireland authorities can impose fines, ban your product, or remove it from the market.
Etsy may delist your product or suspend your account if notified of non-compliance.
Products flagged as dangerous are added to the EU’s Safety Gate system, alerting other authorities and possibly triggering further actions.

Sellers are required to:

Recall dangerous products or take corrective measures.
Inform customers and authorities via the Safety Business Gateway.
Provide remedies to buyers, such as repair, replacement, or refund.

Does GSPR apply in the UK?

No, GSPR does not apply to England, Scotland, or Wales due to Brexit. However, it still applies to Northern Ireland. Sellers offering products to other parts of the UK must follow the UK General Product Safety Regulations (UK GPSR), which have similar requirements. Sellers can refer to UK safety standards to ensure compliance for products like furniture, children’s items, and other consumer goods.

What should I do if my product causes an accident?

If your product causes an accident, manufacturers must report it immediately to the authorities in the country where the incident occurred via the Safety Business Gateway. This includes accidents causing death, injury, or other serious health risks, whether temporary or permanent. Quick action is essential to prevent further harm and ensure compliance with the law.

What are the duties of a responsible person?

The responsible person is an individual or entity based in the EU or Northern Ireland who ensures that your product complies with GSPR. Their duties include:

Keeping technical documentation and sharing it with authorities if requested.
Ensuring the product is labeled with details like batch or serial numbers, the manufacturer’s name, and contact information.
Providing clear instructions and safety warnings in the local language.
Reporting safety concerns or dangerous products to authorities and assisting with recalls.

What types of products are exempt from GSPR?

Certain items are excluded from GSPR, such as:

Medicinal products.
Food and feed items.
Living plants and animals.
Plant protection products like pesticides.
Antiques and works of art.
Aircraft and transport equipment operated by service providers.

For a full list of exemptions, refer to Article 2 of the GSPR.

What’s the difference between antiques and secondhand items?

Antiques and collectibles are excluded from GSPR because they are not expected to meet modern safety standards. Antiques are typically over 100 years old, while collectibles are items of historical or scientific significance meant for preservation. Secondhand items may still fall under GSPR if they re-enter the supply chain as usable products.

How does GSPR impact sellers who use production partners?

If your production partner is involved in manufacturing, importing, or distributing your product, they may also have obligations under GSPR. You should collaborate with them to ensure compliance, including proper labeling, safety testing, and technical documentation.

Does GSPR cover digital products?

Yes, GSPR applies to both physical and digital products (including software) that are sold in the EU or Northern Ireland unless they are already regulated under other EU laws. Sellers should seek legal advice to understand how these rules apply to their shop.

Can I stop selling to Northern Ireland or the EU?

If you want to discontinue sales to these regions, you can adjust your shipping settings or cancel specific orders. Etsy is working on tools to help sellers restrict product availability by location. In the meantime, you can manually update your shop to reflect these changes.

Will canceling sales or restricting listings affect my shop’s metrics?

Canceled orders do not impact your Star Seller rating or customer service metrics. However, buyers may leave reviews within 48 hours of cancellation. If you feel a review violates Etsy’s policies, you can report it for review.

What should I do to stay compliant with GSPR?

Audit Products: Ensure your items meet safety standards, including labeling and documentation requirements.
Add an Economic Operator: Register an economic operator for your shop, such as a manufacturer, importer, or authorized representative.
Update Listings: Include safety instructions, warnings, and manufacturer details in product descriptions.
Stay Informed: Keep track of changes to EU and Etsy compliance guidelines.

For more details, consult legal experts or refer to EU guidance documents on product safety.

Disclaimer: This information is for educational purposes only and does not constitute legal advice. Sellers are responsible for understanding and complying with all applicable laws and regulations for their products. For specific questions, consult a legal professional.

Understanding the General Product Safety Regulation (GSPR): What Etsy sellers need to know