Navigating the EU's new GPSR: changes to product recalls aim for more effective processes

The EU's General Product Safety Regulation (GPSR) (Regulation (EU) 2023/988) changes the way that product recalls will work in the European Union. When a product already sold turns out to be non-compliant or dangerous, it may need to be recalled to protect consumers.

The GPSR, which came into force on 12 June 2023 and will be applicable to businesses from 13 December this year, introduces new obligations to make recalls more effective. These include requirements for businesses to target recall communications directly to consumers where possible, ensure recall notices are clear and transparent by following a template and offer consumers a range of specific remedies.

Consumers notified directly

Direct contact is the most effective method to increase consumers’ awareness of recalls and encourage action. Under the GPSR, when involved in a product recall, businesses will need to directly contact consumers where possible.

Businesses that run product registration systems or customer loyalty programmes will need to offer their customers the chance to provide separate contact details for use only for safety-related purposes.

If data is collected in this way, it may only be used to contact consumers about an unsafe or non-compliant product, but will facilitate direct contact in the event of corrective actions being undertaken.

Prescriptive form for recall notices

For consumers that can't be contacted directly, businesses will need to publish clear recall notices. These will need to be published to ensure the widest possible reach and should be made available on at least the company’s website, social media channels, newsletters and in physical retail outlets.

One third of consumers continue to use dangerous products despite seeing a recall notice, which the EU considers is because recall notices are often drafted in a complex way which confuse consumers or minimise the perceived risk.

In its implementing regulation 2024/1435, the European Commission has published the template that should be used for recall notices from 13 December 2024. It specifically highlights that recall notices should not use language that may decrease the consumers' perception of the risk, for example, terms such as "voluntary", "precautionary" and "discretionary" or by indicating that there have been no reported accidents.

Choice of remedy for the consumer

In an effort to encourage the highest levels of consumer response to recalls and avoid consumers viewing corrective actions as too inconvenient to engage with, the EU is mandating new approaches to remedies. The action required from consumers must be as simple as possible and remedies offered must be effective, cost-free and timely.

Under the GPSR, except where these remedies are impossible or disproportionate, businesses will need to offer consumers a choice between of at least two of the following remedies when carrying out a recall: a repair, a replacement or a refund.

A repair that is required to be carried out by a consumer themselves will only be considered effective if it can be carried out easily and safely. Consumers can also only be asked to dispose of products subject to a recall where it is easy and safe for them to do so (and cannot be a substitute for a right to a replacement or refund).

Osborne Clarke comment

The GPSR seeks to further standardise the approach taken to product recalls and corrective measures in the EU. These standardised approaches may well increase the accessibility of recalls to consumers, but will also significantly increase the administrative and operational burdens on businesses that will have to manage multiple potential remedies and will need to meet consistent requirements regardless of the overall level of risk presented by the product.

The changes represent a significant shift from the historic, risk-based approach, and businesses should act now to update their product safety incident plans to reflect the changes and ensure they are prepared for the new requirements.

This is the third in our series of Insights on how businesses should navigate the new EU General Product Safety Regulation. Our first two Insights examined the changing rules for  manufacturers and importers  and new obligations for online marketplaces.