How The GPSR Will Affect Small Businesses Worldwide

The European Union recently introduced the General Product Safety Regulation (GPSR), a set of rules designed to improve consumer safety and transparency. Because of this new regulation, my small business must stop selling products to all countries part of the European Union and cancel any pre-orders for this region. Many aspects of those new regulations are unclear and their impact on small businesses worldwide will be profound. While I was hopeful and determined to make it work, the GPSR requirements make it almost impossible for a small business like mine to comply.

I only recently became aware of these regulations, like many other small business owners, like Helen Rose from Lauren Aston Designs explains in her article.

It's disappointing that, despite their significant impact on consumers and businesses, major players in the shipping industry have remained silent on the issue or are completely unaware of it although discussion about those measures started with the Brexit 4 years ago. I’ve searched for information on websites like Canada Post, UPS, FedEx, and the Canadian Government, but even last week, I found nothing. Shipping companies and local governments should be the first to understand and share updates on such major regulatory changes, considering businesses are their biggest customers.

What is the GPSR?

The General Product Safety Regulation is a new set of rules designed to ensure product safety and transparency for items sold or sent in the EU. Non-compliance with the GPSR may result in hefty fines up to 20 000€, recalls, product removal from the market and more sanctions. Those rules will be effective starting December 13th. It includes requirements like:

  • Hiring an authorized EU-based representative for your products.
  • Updating packaging and product labels with detailed safety information, such as fire hazard warnings, age restrictions, and choking hazard notices, as well as manufacturer information.
  • Having products tested in a lab in their manufacturing country to confirm compliance with EU safety standards.
  • Acquiring relevant certificates regarding product conformity and risk assessments.

While these regulations aim to protect consumers, they remain excessive protectionist measures for deglobalization which will also have implications for EU importers and consumers.

Why is GPSR Problematic for Small Businesses & Consumers?

  • High Costs

When I learned about the GPSR, I thought I could manage the changes. I looked into hiring an EU representative and adapting my product labels, which is costly but seemed doable for me since the EU market is quite important for me. Hiring an authorized representative starts around 1000€ and up, depending on the number of products sold. But as I researched further, I found out about the additional requirement for lab testing. Lab testing alone can cost thousands of dollars per product design. For small businesses offering a variety of products, these costs quickly add up, often exceeding what’s financially sustainable.
Unfortunately, I’ve asked experts on the subject and lab tests cannot be transferred from manufacturing facilities to resellers. This means that while my manufacturer has conducted product testing on the fibers used to produce my sweaters and cardigans, the products tested are considered different and I cannot use their compliance documents for my own records. Additionally, creating a partnership with them and their authorized EU representative is not an option.
  • Administrative Burden
Complying with GPSR involves extensive paperwork, including detailed product documentation, updated labels with relevant information in the language of the customer, and coordination with authorized representatives. For small business owners who already juggle multiple roles, this is an overwhelming new layer of work that also comes with additional costs.
  • Limited Flexibility
Many small businesses thrive on creativity and quick product launches following trends. Lab testing and approval processes can take weeks or months, making it nearly impossible to release new designs on short notice.
  • Reduced Global Access
Businesses that cannot comply with the GPSR lose access to the EU market, which represents a significant portion of their customer base for many. This restriction not only impacts small businesses financially but also limits consumer access to unique, handmade, or niche products that often aren’t available from larger companies.
  • Economic Impact

Additionally, since large corporations must also bear the costs associated with compliance to these new regulations, these expenses will be reflected in the sale price of their products, disadvantaging EU consumers. Small businesses contribute significantly to the global economy. Restricting their ability to trade with the EU will harm local economies as well.

  • Broader Implications for Families & Friends

We’ve confirmed through communication with certified representatives that the GPSR also needs to be applied by any individual sending a package to the EU. That means friends and family need to ensure that the products they send are compliant with those new rules. This is nearly impossible to manage for individuals and makes handmade goods and gifts challenging to send. The GPSR is a clear attempt to restrain globalization.

What Needs to Change

While safety and transparency are certainly important, the current GPSR framework disproportionately impacts small businesses and vendors selling self-explanatory products. I sincerely hope these regulations will be revised in the future to better accommodate small businesses.

One significant improvement would be to adjust the requirements to reflect the size or nature of a business to create a more equitable framework. Furthermore, responsible authorities should provide a well-defined guide to help businesses navigate and adapt to the new regulations effectively.

So, What Now?

This situation is incredibly hard for me, but I’m not giving up. My focus now is on serving the countries I can still ship to, particularly in North America, where so many of you continue to support my business. I’m working on exciting new designs and ideas to keep growing and sharing my passion with you all. I sincerely hope these regulations will be reviewed in the future to better accommodate small businesses.

For my EU customers: thank you so much for being part of this journey with me. Your support has meant the world, and while I can’t ship to you right now, I hope we can stay connected virtually. Who knows what the future holds for us! I look forward to selling to my European customers again soon...

Resources for Small Businesses

The GPSR is a wake-up call about how regulations can create barriers for small businesses. If you’re a small business owner navigating these challenges, know that you’re not alone. Many face tough decisions about whether to stop selling in the EU or not. Stay informed, connect with others in your industry, and advocate for solutions that balance safety with fairness.

I’ve compiled a list of resources for small businesses. You can find the authorized representatives I spoke with and recommended laboratories for product testing if you ever decide to go forward with complying to the new GPSR.

Authorized GPSR Representatives:

Lab Testing for GPSR :

Back to blog

Leave a comment