Today the European Union’s new General Product Safety Regulation (GPSR) comes into effect, impacting businesses across Britain by introducing new post-Brexit trade barriers with our closest overseas market, and delivering another blow to businesses exporting to Northern Ireland. 

Below we go into detail, exploring what GPSR is, who it will affect and why it matters the most for small businesses and sole traders. 

Please note that this post is not extensive or exhaustive, and does not seek to give legal advice. For further information on the GPSR, please visit the UK Government website.

What is GPSR?

The General Product Safety Regulation (GPSR) was introduced by the EU to better protect consumers in the bloc against potentially dangerous products sold offline or online.

Legislative changes became necessary following the rapid growth of e-commerce and dropshipping which has made it increasingly common for professional and legitimate-looking websites to deliver substandard or even dangerous goods.

It replaces the EU’s old directive regulating product safety, the General Product Safety Directive (GPSD).

When does GPSR go into effect?

The GPSR came into force on 13 December 2024. From this date, all traders selling in the EU must ensure any new products placed on the market comply with GPSR requirements, or bring them into compliance with the new requirements. 

After this date, products that don’t comply might need to be withdrawn from the market and traders may face sanctions.

What is covered by GPSR?

The GPSR will apply to all consumer goods, including digital products, placed on the EU and Northern Ireland markets – including CE marked goods – that aren’t already subject to product specific legislation that ensures they are compliant with EU rules. 

This means that businesses of all sizes are impacted, from small companies and local shops to international giants. 

Does GPSR apply to the UK?

GPSR does not apply to goods being placed on the GB market. GPSR does not impact goods coming into Britain but it applies to businesses of any country that want to sell into the EU and Northern Ireland that are not already part of the single market. This includes UK businesses that sell their goods into the EU Single Market.

What does it mean for Northern Ireland?

Businesses must follow the same rules when exporting to Northern Ireland. This is because of the last Government’s Brexit deal – the alternative would be border checks along Northern Ireland’s 500km border with the Republic of Ireland. It means that many small businesses in Britain have now made the decision to stop exporting to this part of the UK. 

In practice, what will GPSR mean for businesses?

GPSR essentially updates 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. The potential gamechanger is that the legislation also requires businesses to have a named representative within the EU or NI to vouch for the safety of products. 

Businesses could face penalties for non-compliance.

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

The UK’s legislation for general product safety is based upon the EU’s old directive regulating product safety, the General Product Safety Directive (GPSD). Legislation in Britain is not changing, meaning that there will now be some divergence in approaches to general product safety between Britain and the EU. This means that from today, handling a cross-border product safety issue is likely to become even more complex.

A lot of British businesses, in particular sole traders and those of a smaller size, are weighing up whether or not it is practical to keep selling to the EU and NI. For small businesses already under strain from increased paperwork and costs from Brexit, having to fund a member of staff in the EU will be too much for many to make exporting financially viable. With 60% of the UK’s workforce employed by SMEs, it is feared this could cost jobs and economic growth.

What does it mean for UK consumers?

People in Northern Ireland could see a reduction in the choice of goods sold by sole traders based in Britain. For consumers in England, Scotland and Wales, it may result in price increases as SMEs seek to replace lost income from their inability to sell in the EU or Northern Ireland. 

What can be done to make things better?

While it is unclear exactly how damaging this development will be and how the new regulation will work in practice, anything the UK Government can do to remove trade barriers, reducing costs for businesses and consumers, will be essential.

To ease trade frictions resulting from the GPSR in the short term, the UK Government could use the Product Regulation and Metrology Bill to bring product safety regulation in GB back into alignment with regulations in the EU and NI, once the Bill becomes an Act.

In the longer term, the UK Government could use the relationship reset with the EU and upcoming review of the Brexit deal to agree to a general policy of beneficial regulatory alignment between the EU and UK, as outlined by the UK Trade and Business Commission in their report, Trading our way to Prosperity. 

Alignment is one of 114 recommendations to remove barriers to trade between the UK and the EU. Brexit trading arrangements are due to be reviewed in 2026.