The new technologies are transforming the digital marketplaces, making it difficult for lawmakers to keep up with the latest trends.
That is why the EU’s new product safety regulation focuses on online marketplaces, software products, and technologies that can put the safety of consumers at risk.
Aside from introducing a long list of compliance requirements, the GPSR also aims to strengthen the collaboration between all economic operators and Market Surveillance Authorities in order to increase consumer protection across the Union’s online and offline marketplaces.
Consequently, each product within the scope of the GPRS must have an EU Responsible Person maintaining contact with the authorities through platforms like Safety Business Gateway and consumers in case of accidents or complaints regarding the item’s safety.
What’s more, sellers on online marketplaces, like eBay or Amazon, must include the EU Responsible Person’s contact details in each product listing they add to their stores in one of the EU countries.
We’ll help you determine whether your online business needs an EU Responsible Person and choose one you can rely on.
What is an EU Responsible Person?
The GPSR document doesn’t provide a clear definition of an EU Responsible Person.
Instead, the document’s article 16 (1) states that:
‘A product covered by this Regulation shall not be placed on the market unless there is an economic operator established in the Union who is responsible for the tasks set out in Article 4(3) of Regulation (EU) 2019/1020 in respect to that product.’
Article 4(3) from the regulation of market surveillance and compliance of products implies that products can only be placed on an EU market if they have an economic operator who is responsible for performing tasks such as:
- Ensuring that all technical files comply with EU regulations
- Providing documentation proving the product’s conformity with GPSR to the market surveillance authorities in a local language.
- Inform and collaborate with market surveillance authorities to mitigate the safety concerns posed by a dangerous product.
The same article of this regulation indicates that the contact information of an item’s Responsible Person, such as the registered trade name or trademark and the postal address, must be included on the product, its packaging, the parcel, or an accompanying document.
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Who can be an EU Responsible Person?
The available definitions of the Responsible Person suggest that an economic operator can only serve as a point of contact for market surveillance authorities if established in an EU member state.
Here’s a quick overview of potential entities international online sellers can appoint as an EU Responsible Person for the products they offer in the Union:
- The manufacturer—If established in the EU, a product’s manufacturer can act as an EU Responsible Person.
- An importer – If the manufacturer isn’t established in one of the EU countries, an importer can act as a responsible person.
- An authorized representative – A natural or legal person who receives a written mandate from the manufacturer can be an EU Responsible Person for the products that fall within the scope of the GPSR.
- A fulfillment service provider – Businesses or individuals providing warehousing, packaging, dispatching, or addressing services for products they don’t own can be appointed as an EU Responsible Person if the manufacturer, importer, or authorized representative is unavailable for a product.
Appointing an authorized representative is often the simplest solution for economic operators from outside the EU because it enables them to create a point of contact for market surveillance authorities and consumers relatively quickly and at a reasonable cost.
The primary responsibilities of an EU Responsible Person under the General Product Safety Regulation
An EU Responsible Person has a two-way responsibility towards the business they represent and the Market Surveillance Authority.
According to the GPSR document, the Responsible Person must review a product’s technical documentation to confirm its compliance with the product safety regulation and ensure that the manufacturer has met all other compliance requirements such:
- Including the batch, serial number, type, or similar identifier on a product, its packaging, or an accompanying document.
- Adding the manufacturer’s and EU Responsible Person’s contact information, such as the registered trade name or the electronic address, to a product, its packaging, or accompanying document.
- Ensuring that easy-to-follow instructions and safety information are available for a product in the market’s local language.
On the other hand, Article 15 of the GPSR defines the responsibilities of economic operators towards Market Surveillance Authorities. It’s important to remember that once appointed, a Responsible Person assumes these responsibilities and maintains all communication through portals like Safety Business Gateway.
If requested by the Market Surveillance Authorities, the responsible economic operator for a product must provide a description of the risk a product poses to consumers as well as the full list of complaints and accidents customers reported in relation to that product.
They must also offer a detailed description of the steps taken to mitigate those risks.
The economic operator acting as an EU Responsible Person must keep a product’s technical documentation and any information regarding complaints and accidents for ten years.
The differences between an Authorized Representative and EU Responsible Person
The terms European Authorized Representative (EAR) and EU Responsible Person (EU RP) are often used interchangeably, even though there are several key differences between these roles.
An EU RP is a mandatory role performed by an economic operator established in the EU. Hence, the item’s manufacturer, importer, or fulfillment service provider can act as its Responsible Person.
On the other hand, an authorized representative is a natural or legal person who received a written mandate from another economic operator to perform specific tasks related to product safety on the manufacturer’s or distributor’s behalf.
Consequently, an authorized representative can serve as a Responsible Person for consumer products from just one or a handful of categories.
It’s particularly important for online sellers who offer cosmetic products to pay attention to this caveat because the Responsible Person or an entity acting as an authorized representative for products from this category must have the necessary expertise to determine whether a cosmetic product can be deemed safe for consumers.
Choosing the EU Responsible Person service
Selecting an EU Responsible Person service is one of the most important steps digital merchants must take on the road to compliance.
Still, merchants on online marketplaces like Amazon or eBay must first check if the EU Responsible Person is available for the products they list in their stores for European markets on these platforms.
Let’s examine the factors you should consider when selecting an EU Responsible Person service for your business.
Evaluating product categories
Understanding the scope of the EU product safety laws is paramount when determining whether your business needs a Responsible Person. The regulation applies to new, used, repaired, or reconditioned non-food products with several exceptions.
However, other Union regulations may apply to products exempt from the GPSR.
For example, pet food and other animal feed don’t fall under the scope of this regulation. Still, other restrictions apply to products from this category, so sellers must check all the compliance requirements before placing this type of product on an EU marketplace.
The area of expertise and scope of the mandate
An authorized representative’s responsibility must be clearly defined in the written mandate an AR receives from a business.
Under the GPSR, an EU Responsible Person is only responsible for the administrative tasks outlined in the written mandate, so online businesses must verify that an entity they want to designate as an EU RP can review the technical files of their products.
Furthermore, online sellers offering products from multiple categories must carefully consider the EU RP’s area of expertise.
Reviewing the Service-Level Agreement
Aside from understanding the scope of the EU RP’s mandate, online sellers should check other details, such as how long a responsible person has to respond to inquiries about products or resolve an issue related to a product’s safety.
This information is commonly included in the Service-Level Agreement (SLA) along with an economic operator’s responsibilities, the EU Responsible Person’s compliance monitoring processes, performance metrics for the EU RP, and potential penalties for non-compliance.
That’s why it’s paramount to take time to review the SLA and understand its legal implications for all parties involved.
Pricing considerations
The monthly or annual cost of the EU Responsible Person service varies by provider and depends on several factors.
Here are some aspects online sellers should consider while determining the most budget-friendly EU RP service for their business:
- The number of markets: Sellers offering products on several online markets in the EU will likely pay more for this service than those who want to place products on just one EU marketplace.
- The quantity of products: The price of the EU RP service depends on the number of items in your inventory you want to make available to consumers in the EU.
- Product type: Service providers might charge more for assuming responsibility for the safety of products from certain categories, such as cosmetics or batteries, due to the high level of expertise required to determine their safety.
- Additional services: Bi-annual or yearly GPSR compliance reviews, expanding the range of products, and providing legal guidance regarding upcoming legislation are among the services that could increase the cost of an EU Responsible Person.
Fines and penalties for non-compliance with the GPSR
Even though the GPSR is a Union harmonization legislation, the fines and penalties for non-compliance with the product safety regulations are determined by EU member states.
Potential fines for online sellers who fail to comply with this regulation depend on the EU marketplace where they offer their products.
These fines can be as high as 4% of the business’s global turnover, although this figure should be viewed as an upper ceiling rather than the average amount.
So, sellers operating on multiple marketplaces across the Union must inquire about fines and penalties for failing to appoint an EU RP or other violations of the product safety regulation. It’s also worth noting that in some cases, Market Surveillance Authorities can request a recall of a product deemed dangerous for consumers.
Furthermore, Amazon, eBay, and other online marketplace providers can also enforce penalties for non-compliant sellers, ranging from removing product listings to account suspensions, depending on the severity of the violation.
A Responsible Person as your partner on EU’s digital marketplaces
Finding a reliable EU Responsible Person service provider is arguably the most critical step international sellers on digital marketplaces in the EU have to take on their path to GPSR compliance.
However, this process can be overwhelming due to a wide range of factors sellers must consider before offering a written mandate to one service provider or another.
Do you need assistance with choosing an EU Responsible Person for your business? Webinterpret can help! Book a demo to learn more about our GPSR compliance solution.
About Webinterpret
Webinterpret supports merchants selling on eBay.
Our AI-based solutions enable more effective selling through automated listing localization, advertising, and returns and ensure all products placed on EU markets are GPSR-compliant.
By giving your international customers a full, end-to-end local shopping experience, Webinterpret improves your conversion and helps establish your business globally.
