Legal Alerts/14 Mar 2025

EU’s General Product Safety Regulation Sets Stricter Product Safety Standards – Finland to Update National Laws

The General Product Safety Regulation (EU) 2023/988 (the "GPSR") entered into effect on 14 December 2024, replacing the General Product Safety Directive (2001/95/EC). In response, Finland is set to revise its national laws to align with the GPSR's objectives, focusing on improving consumer protection and addressing the challenges posed by digitalisation and the circular economy.

The Finnish Government has recently issued a proposal (HE 213/2024 vp) under which the Finnish Consumer Safety Act (920/2011) would be repealed and replaced by the proposed two new acts on consumer product safety and consumer service safety. Key legislative changes include the introduction of language requirements for product safety information, designation of competent market surveillance authorities, and establishment of penalties for violations.

The GPSR aims to provide a general framework to enhance consumer protection for goods sold offline and online. The regulation applies to consumer goods, but its requirements also extend to products which are likely, under reasonably foreseeable conditions, to be used by consumers even if not intended for them.

Key changes implemented by the GPSR

Under the GPSR, the scope of coveredconsumer productsincludes new, used, repaired, and reconditioned products, including digital goods. The provisions apply to products sold in all sales channels, including online marketplaces that supply goods in the EU market. Some of the other key changes brought by GPSR include:

Online marketplaces must now actively ensure product safety

Intermediaries that facilitate the sale of products on digital platforms now have to directly contribute to product safety. For example, they must establish internal processes to ensure product safety, including mechanisms for traders to submit accurate and adequate product information. A single point of contact must be appointed for direct communication with market surveillance authorities.

Redefined obligations for manufacturers to address cybersecurity and AI risks in product safety

Manufacturers must ensure that their products are designed and manufactured in compliance with the general safety requirement. Safe products are defined as products which, under normal or reasonably foreseeable conditions of use, do not present any risk or only the minimum risks compatible with the product’s use. Additionally, manufacturers must now explicitly consider cybersecurity risks, AI features, and predictive functionalities in smart products as part of the product safety assessment.

A responsible economic operator in the EU is required

Under the GPSR, every product placed on the EU market must have a designated responsible person established within the Union to act as a point of accountability with market surveillance authorities. While this requirement previously applied only to harmonised products, the GPSR extends it to non-harmonised products, ensuring uniform oversight across all consumer goods.

Enhanced consumer protection with mandatory recall notices and multiple remedies

Businesses must directly inform consumers about safety risks and product recalls using a mandatory recall notice template. The GPSR mandates that customers are offered at least two remedies out of the three options:
repair, replacement, or refund, at no cost and within a reasonable timeframe.

Presumption of a dangerous product

Products that have been deemed to be dangerous by a market surveillance authority in one Member State under the GPSR shall be presumed dangerous by authorities in other Member States. If the market surveillance authorities reach different conclusions in terms of identification or level of the risk on the basis of their own investigation and risk assessment, the matter may be referred to the Commission to request its opinion on the matter. The Commission may also issue an opinion on the identification or level of the risk on its own initiative.

Proposed changes to Finnish national legislation

To reach alignment with the GPSR, Finland is introducing updates to its national legislation to enhance consumer protection and ensure compliance with EU standards. The Government Proposal 213/2024 vp includes introduction of a new consumer product safety act to supplement the GPSR’s provisions and a new consumer service safety act. Some of the proposed key provisions include:

Introduction of administrative monetary penalties proportional to business turnover

The proposed laws will introduce administrative penalty fees linked to business turnover for non-compliance. These fines will be used alongside existing criminal sanctions, providing a more flexible enforcement mechanism. This approach ensures that penalties are proportionate to the scale of the business and the severity of the violation, allowing authorities to tailor responses based on the nature of the non-compliance. The penalty fee would amount to 1% of an individual’s annual income or a legal entity’s annual turnover or equivalent revenue, with a maximum cap of 10,000 for a natural person and EUR 100,000 for a business entity. and would concern breaches of notification and labelling obligations.

Focus shifted to prioritise human health and safety over property protection

The new regulations will prioritise human health and safety, removing the property protection. This shift reflects a more targeted approach to consumer protection, ensuring that regulatory efforts are concentrated on safeguarding individuals rather than property.

Introduction of language requirements for product safety information

The proposed legislation mandates that product safety information be provided in Finnish or Swedish or both. This ensures that all consumers can access clear and understandable safety information, reflecting Finland’s commitment to linguistic accessibility and consumer protection.

Next steps

The legislative project to amend the national consumer product and service safety laws is in its early stages in Finland. A detailed schedule for the legislative project is not published, but the proposed laws are intended to come into effect as soon as possible according to the information published on the website of the Ministry of Economic Affairs and Employment. The overall impact on businesses and authorities is expected to be manageable, with a focus on reducing administrative burdens and updating guidelines authorities. Nevertheless, businesses operating in the EU market should review their current product safety protocols and ensuring alignment with the GPSR's requirements.

Our experts will be following the legislative developments and will keep you informed. If you have any questions, please feel free to contact the undersigned or your regular Borenius contact.