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December 10, 2024

New Product Safety Regulations: Will Disclosing Suppliers Reduce Competitiveness? FAQ about GPSR

Starting 13 December 2024, the new General Product Safety Regulation (GPSR) will require online retailers to provide additional information. E-shop owners must include manufacturers' contact details and, for non-EU companies, also list the EU-based importer or representative.

What Exactly Does the Regulation Change?

Under the new regulations, every product sold online must display the full name of the manufacturer, a postal address, and an electronic contact, such as an email address. If the manufacturer is not based in the European Union, the details of the responsible entity within the EU namely the importer or authorized representative must be provided.

What is new in this legislation is not the principle of disclosure itself, as the obligation to label products with manufacturer information has existed for years. The novelty lies in the requirement that this information must now be visible directly in the online store.

Will Disclosing Supplier Information Reduce Competitiveness?

Many retailers worry that disclosing this information could lead to a loss of competitive advantage. Two main concerns arise:

  1. Risk of suppliers being taken over by competitors: Providing information about the manufacturer may make it easier for competitors to access the same source and start offering the same products.
  1. Direct contact between customers and manufacturers: Customers may contact manufacturers directly, which could theoretically allow them to bypass intermediaries and secure a better price.

Are These Concerns Justified?

Upon deeper analysis, it can be concluded that the risk is smaller than it might initially appear.

  • The obligation is not entirely new: information about the manufacturer, importer, or authorized representative must already be available on the product packaging. The new rules only require these details to be published online as well. In practice, competitors can already obtain this information when ordering the product or by searching for physical details on product labels.

  • The obligation applies only to the manufacturer or importer: Retailers are not required to disclose all parties in the supply chain. Information about intermediaries, wholesalers, or other business partners does not need to be publicly available, which reduces the risk of competitors accessing supply sources.
  • Direct sales by manufacturers are not always advantageous: Although customers may try to purchase directly from manufacturers, most manufacturing companies prefer to collaborate with intermediaries. Retail sales, logistics, and marketing are tasks that often go beyond the capabilities of manufacturers. Therefore, many of them still rely on business partners, such as online retailers.

How to Prepare for the New Regulations?

For online retailers, the most important thing now is to ensure that all products are properly labeled and comply with the new requirements. Products lacking the required information may expose the company to fines or lawsuits from competitors, as well as the risk of losing credibility in the eyes of customers.

Compliance with the new regulations can also be an advantage for retailers. Transparency of supplier information can strengthen consumer trust and improve the store's reputation. Customers increasingly expect complete product information, and meeting these expectations can boost customer loyalty and enhance brand image.

Summary

Although the new regulations regarding the disclosure of manufacturer information in online stores may initially raise concerns, they do not pose a real threat to most Polish retailers. In fact, these regulations can help build greater transparency and credibility in the market. Instead of worrying about losing a competitive advantage, retailers should focus on proper product labeling and use the new regulations to strengthen their position in e-commerce.

Questions and Answers on the New Obligations under the General Product Safety Regulation (GPSR)

(1) Do I need to state on every product I create that I made it myself?

Is it enough to provide this information on the homepage of my store?

Answer: If you are the manufacturer, it is required to state this fact.
Manufacturer information must be provided for each individual product.
Information on the homepage is not sufficient. This information must be added to each individual product description.

(2) What information do I need to provide if I sell clothing and accessories? Do I need to include details about the manufacturer or the intermediary from whom I purchase the goods?

Answer: If the manufacturer is located within the EU, you must provide the manufacturer's details, including their name, address, and email address or website. Information about the importer is required only if the manufacturer is located outside the EU.

(3) When can an online retailer be considered a manufacturer? For example, if I outsource the production of T-shirts abroad, am I the manufacturer, or should I provide details about the foreign manufacturer?

Answer: If the products are made on your behalf and sold under your brand, you are considered the manufacturer. In this case, you must provide your own details, not the factory's details.

(4) Do I need to label used books with manufacturer details, even if the manufacturer no longer exists?

Answer: In the case of old books where the manufacturer no longer exists, it may be difficult to obtain the required information. There are exceptions and regulations for such cases, but it is recommended to consult a lawyer to determine the best course of action.

(5) If I sell perfume samples, do I need to provide manufacturer details and warnings, even if the samples were purchased before the new regulations came into effect?

Answer: Yes, manufacturer details and any warnings must be provided even for samples. If the samples were purchased before the regulations came into effect and do not have the required information, it is recommended that you add this information yourself.

(6) Do I need to disclose manufacturer details when dropshipping, if I do not physically own the product and do not have access to it?

Answer: Yes, you must disclose manufacturer or importer details even if you are selling products through a dropshipping model. The regulation does not provide any exception for this sales model.

(7) If I sell products exclusively from one manufacturer on a platform that only sells these products, do I need to provide their details?

Answer: Yes, even in this case, you must provide the manufacturer's details. The regulation does not provide exceptions for platforms selling products from a single manufacturer.

(8) Do I need to provide the manufacturer with details of individual components if I make jewelry from various components purchased from different suppliers?

Answer: If you make the jewelry yourself, you are considered the manufacturer and do not need to provide the manufacturer with details of individual components. You only need to provide your own details as the manufacturer of the finished product.

(9) Can I provide the manufacturer's website instead of their email address?

Answer: Yes, both the website and the email address of the manufacturer can be provided as the contact information. Both forms are acceptable.

(10) What if I sell old magazines and comics and their manufacturers no longer exist? What information should I provide?

Answer: In this case, it is advisable to consult a lawyer or follow current legislation, as the existing regulations may require an alternative solution if the manufacturer is no longer available.

(11) Do I need to provide details about the wholesaler from whom I purchase raw materials if I manufacture the finished products myself?

Answer: No, if you manufacture the finished product yourself, you are considered the manufacturer and do not need to disclose details about the wholesalers from whom you source raw materials.


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