The EU’s New Product Safety Regulation: What UK Merchants Need to Know
As concerns grow over unsafe products entering the European Union via online marketplaces, the EU is preparing sweeping reforms that would shift the responsibility for product safety onto e-commerce platforms. The proposed changes target the surge in low-cost imports, especially from non-EU countries like China, and aim to hold major online retailers accountable for unsafe or non-compliant products sold on their platforms.
Whilst much of the legislation is still in draft form, its final implementation will reshape UK merchants’ approach to product safety, customer disputes, and chargeback management in the near future. This is because, although the UK is no longer part of the EU, the new rules are expected to have significant implications not just for large e-commerce platforms, but for all UK merchants selling to EU customers.
What Are the Proposed EU Product Safety Reforms, and When Are They Being Enforced?
The European Union has recently introduced several reforms to enhance product safety, particularly in the context of e-commerce. One significant regulation is the General Product Safety Regulation (EU) 2023/988, which was adopted in 2023 and came into full effect in December 2024. This regulation aims to improve product safety across the EU, including products sold through e-commerce platforms.
In addition to the existing General Product Safety Regulation, there is a draft proposal on E-Commerce Platform Liability, which shifts the responsibility for product safety from producers and individual sellers to retail platforms. While still under discussion, this proposal is expected to be enforced in the spring of 2025.
How Do These Reforms Affect UK Retailers Selling to the EU?
The EU’s proposed reforms will directly affect UK retailers selling to EU customers, even though the UK left the European Union in 2020. Cross-border e-commerce is a significant business channel for many UK merchants.
For UK merchants, this means that any product they sell to EU consumers, whether through platforms like eBay, Amazon, or direct-to-consumer sales channels, must meet the new EU safety requirements. In view of this, it is important to note that small and medium-sized merchants, in particular, may face a greater burden in terms of compliance with these regulations.
While the final details of these reforms are still being drafted, businesses can expect to see increased scrutiny of product safety in the near future. Because platforms will be held accountable for dangerous or non-compliant products, this means UK sellers will likely be required to:
- Ensure their products meet EU safety standards for consumer goods
- Ensure proper labelling and documentation is in place for all products sold in the EU
- Ensure that any third-party sellers they work with are also compliant with these new rules
- Collaborate with platforms to ensure the adherence to compliance obligations
If merchants fail to meet these standards, there could be delays in shipment, endless product recalls, or fines imposed by EU authorities. Naturally, non-compliance would also lead to reputation damage if products are found to be unsafe or not as described.
How Will This Affect Customer Disputes and Chargebacks?
Chargebacks are often triggered when products fail to meet safety standards, leading to customer dissatisfaction. As platforms will be held accountable for these products, merchants selling on these platforms may experience a higher rate of chargebacks linked to safety concerns, misrepresentation, or failure to meet customer expectations. This will place additional strain on merchants already managing disputes with customers.
To mitigate chargeback risk, UK merchants should focus on:
- Ensuring their products are fully compliant with EU safety standards to avoid customer dissatisfaction
- Improving product transparency by providing clear, accurate descriptions and safety information
- Implementing robust return and refund policies that help prevent disputes from escalating into chargebacks
- Monitoring feedback from customers to identify potential issues before they result in chargebacks
Additionally, utilising a chargeback solution company can help UK merchants manage disputes effectively. These services use data analytics, automation, and response strategies to reduce the likelihood of chargebacks, recover lost revenue, and ensure compliance with evolving regulations. Therefore, chargeback management tools will be essential for UK retailers who wish to navigate the regulatory landscape of the future.
What Steps Should UK Retailers Take to Prepare for These Changes?
As the General Product Safety Regulation (EU) came into effect at the end of 2024, and the further proposed reforms are commencing into the draft stage, UK merchants should start preparing now to make sure they are ready to comply as soon as the rules are finalised and come into full effect.
To help UK merchants prepare for these changes, here are five essential steps they can take:
- Reviewing product safety compliance: Ensure all products meet EU standards for safety, labelling, and documentation.
- Appointing an EU-based Responsible Person: If a merchant sells in the EU, it may be necessary for them to appoint an individual or representative in the EU to handle regulatory compliance matters.
- Improving transparency and product descriptions: Make sure your product descriptions are accurate and clear, and provide all necessary safety information to consumers.
- Strengthening chargeback management: Consider partnering with a chargeback solution provider to manage potential disputes effectively, particularly if product safety issues lead to complaints or returns.
- Tracking changes in regulation: Stay up to date with the finalisation of the EU reforms and be ready to adjust their business processes accordingly.
Are the EU Product Safety Reforms a Challenge or an Opportunity for UK Merchants?
The EU product safety reforms represent both a challenge and an opportunity for UK merchants. On the one hand, these regulations will require significant operational adjustments, especially for those selling through online marketplaces. These changes will increase compliance burdens, especially for small and medium-sized merchants who may struggle with the additional resources needed to meet the new standards.
However, these reforms also present a unique opportunity to enhance product safety, improve customer satisfaction, and build trust with consumers. By embracing the changes early, UK merchants can not only mitigate potential risks but also establish a stronger, more transparent relationship with their customers. In turn, this proactive approach could lead to fewer disputes, a reduction in chargebacks, and ultimately, greater customer loyalty.
In the long run, businesses that adapt to these new regulations will be better positioned to thrive in the EU market, reduce operational risks, and protect their reputation – ultimately improving their bottom line and securing long-term success.