Out-Law News 3 min. read
11 Apr 2023, 10:50 am
Businesses selling products either through online marketplaces or in traditional shops across the EU, as well as their manufacturers and suppliers, need to make significant changes to their practices to comply with the revamped EU product safety rules, a legal expert has said.
MEPs have approved long-awaited revamped rules on product safety for non-food consumer products, in a bid to tackle safety risks linked to new technologies and growth in online sales and better protect vulnerable consumers such as children and people with disabilities. Member states will now need to formally endorse the new rules, before their publication in the EU Official Journal and entry into force.
Rebecca Trampe-Berger of Pinsent Masons said the revamped rules will bring significant changes in practice not only for retailers, manufacturers of products, importers, distributors, fulfilment service providers, but also for providers of online marketplaces.
“All economic operators must now establish a central contact point through which they can be contacted by the market surveillance authorities of the respective member state regarding product safety issues or instructions related to a specific product,” said Trampe-Berger.
Online marketplaces are required to register in the Safety Gate Portal, a rapid alert system for dangerous products formerly known as the RAPEX system, and include information about their single point of contact. The new regulations introduce clear obligations for online marketplace operators, such as cooperation with market surveillance authorities to mitigate risks and to remove or disable access to offers of dangerous goods without undue delay.
Another main change to the rules aims to make the removal of dangerous products swifter and the process of product recalls more effective.
“The new deadline requires that a product has to be removed from the market at least within two working days after being notified by a market surveillance authority. It is necessary for economic operators and online marketplaces to set up a corresponding contact point and the necessary internal processes at an early stage to ensure this very fast removal of a product,” said Trampe-Berger.
Economic operators that are not established in the EU, for example, UK-based manufacturers supplying goods to EU retailers or online marketplaces, should also name a responsible person or firm based in the EU well in advance of the new rules coming into force. The persons named are responsible for the safety of their products, and towards whom the market surveillance authorities can issue instructions if necessary. Under the new regulations, products coming from outside the EU can only be placed on the market if there is an economic operator established in the EU who is responsible for their safety.
Trampe-Berger said that online marketplace operators should inform their manufacturers and distributors about the new regulations and provide them with clear guidance on applicable EU consumer law. Particular attention should be drawn to the information and labelling requirements, as well as the need to provide company information and the contact details of a central contact point for the market surveillance authorities, she said. Manufacturers and distributors should also familiarise themselves with the more extensive consumer rights applicable in the event of a product recall: buyers not only need to be informed about the recall, they must also be offered a repair, a replacement product or a refund at the same time according to the revised rules.
“In order to improve the effectiveness of product recalls, it is necessary to reach the consumers concerned faster and more effectively. In this regard, economic operators will have to ensure that the possibility to contact customers directly in case of product recalls or safety warnings concerning them is included in existing customer loyalty programs and product registration systems, where customers who have purchased a product, are asked to voluntarily provide the manufacturer with some information such as their name, contact information, product model or serial number,” Trampe-Berger said.
To comply with the new requirements, recall notices have to be clear and transparent and clearly describe the risk that exists, avoiding terms, expressions and other elements that may cause consumers to perceive the risk as low. In addition, a recall should also be made through other appropriate channels to ensure the widest possible reach, including through the company's website and social media, as well as announcements in mass media and other communication channels, as appropriate.
“Manufacturers and online marketplaces need to set up a mechanism to enable constant monitoring of their products for possible product safety risks. This requires internal preparation and the introduction of internal processes, which the economic players concerned should already be addressing,” Trampe-Berger added.
