EU Regulation 2023/988: GPSR could be a boon to bike dealers - Show Daily

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EU Regulation 2023/988: GPSR could be a boon to bike dealers

Bike dealers take note: increased protection, better rights – but also more responsibilities. Dirk Zedler writes about how the new EU safety regulations affect retailers.

With the General Product Safety Regulation (GPSR) in its new, more precise and strict iteration, the EU imposes more responsibility on distributors, making it necessary to work much closer with manufacturers and importers.
With the General Product Safety Regulation (GPSR) in its new, more precise and strict iteration, the EU imposes more responsibility on distributors, making it necessary to work much closer with manufacturers and importers.

First, the good news: the new GPSR imposes the same regulations on the online marketplaces of predominantly Asian origin (think Temu and Alibaba) as on European manufacturers and dealers. In the same way that all toys must observe the same exposure limits for contaminants, so all e-bikes, bicycles, components and accessory parts must meet the same safety requirements. One effect of this is that the days of suspiciously cheap online deals are likely to come to an end.

The EU explicitly wants a level playing field and uniform consumer protection. It follows logically that stricter requirements will now extend beyond e-bikes to include “normal” bicycles, components and accessory parts. It’s likely some market surveillance authorities will soon start to draw random samples from dealers to check that manufacturers meet their duties under GPSR. Looking at the current state of the industry, sales bans seem certain. Dealers should do what they can to prevent them by working more closely with manufacturers.

Dealers should note that the safety requirements are applied equally and across the board to all products put into circulation or placed on the market, whether new, used, repaired or restored. This means dealers should seriously consider if the occasional professional sale of used bikes is still attractive.

Most distributors are not likely to lose much sleep over that decision, but the changes of the new regulation over its predecessors do not stop there. Most importantly, the number of responsible parties has been extended. The GPSR has this to say:

“Manufacturers, importers and distributors must ensure that their products are safe and comply with the applicable regulations.” That is quite a turning point, because up until the end of 2024 distributors/dealers could simply point to the manufacturer in the event of material failure and resulting damage. In the future, they will themselves be increasingly faced with liability claims.

Dirk Zedler
Dirk Zedler

What are the new obligations for dealers?

When buying e-bikes, bicycles, components and accessory parts, dealers are well advised to use a (standardised) list of questions for their purchasing process. This is because GPSR states unequivocally that distributors may only place products on the market if they have made sure that the manufacturer, in some cases the importer, has complied with some basic requirements.

The main thing for dealers is to check if manufacturers have included on their products a type, batch or serial number or another identifying element that is easily visible to consumers. If the size or type of product makes this impossible, the required information can also be provided on the packaging or on documents accompanying the product – an exception for which bicycles and many bike components most likely do not qualify.

As has been the case for e-bikes for a number of years, manufacturers must now affix their name, registered trade name or trademark, postal and e-mail addresses, plus the postal or e-mail address of their centralised contact point under which they can be reached, if it is different. This information must also be provided on the product itself or, if not possible, on the packaging or accompanying documents.

Moreover, dealers are obligated to check that the product comes with clear instructions and safety information in a language the consumer can easily understand, determined by the relevant member state, although this requirement can be waived if the product can be used safely and as intended by the manufacturer without such instructions and safety information. This is another area with hardly any loopholes the bike industry might exploit since even seemingly simple accessory parts, like mudguards, bike computers or a new pair of pedals, could carry risks.

All in all, the new GPSR does not ask to replicate manufacturers’ obligations wholesale, but it requires a reasonable effort to visually inspect incoming goods – nothing any self-respecting bike dealer should object to.

A product is not compliant – now what?

If a dealer has reason to assume that a product is not compliant, they are quite simply forbidden to distribute it. In plain terms, they must block the product immediately and remove it from their sales room. The next step is to inform the manufacturer or importer immediately.

And that is not all. According to the GPSR, the dealer must also ensure that the required corrective measures are actually taken to effectively make the product comply. In some cases, the product may need to be removed from the market or recalled.

Finally, dealers need to make sure that the market surveillance authorities of the member states in which the product was distributed are informed without delay of any products in violation of the GPSR.

To facilitate this, the European Union hosts the Safety Business Gateway platform (previously named RAPEX), used to report to European market surveillance authorities. After the competent authority has assessed the situation and implicated risks, products declared non-compliant can be looked up by anyone at no cost.

Conclusion

With the General Product Safety Regulation (GPSR) in its new, more precise and strict iteration, the EU imposes more responsibility on distributors, making it necessary to work much closer with manufacturers and importers. On the upside, gone are the carefree days enjoyed by some hitherto practically unregulated online sellers.

About Dirk Zedler

Since 1993, Dirk Zedler has been an analyst and expert witness on bicycle accidents and product failures for courts, bike and insurance companies, and private individuals. He is an officially appointed and sworn expert on bicycles and on electric bicycles. The Zedler-Institut develops and builds testing equipment. The Zedler-Institut’s work provides a basis for European and American manufacturers to communicate with their Asian suppliers. Manufacturers can buy test equipment or use the state-of-the-art testing labs. The Zedler-Institut also prepares risk assessments, conformity documents, workshops, recall papers and user manuals for bicycles and pedelecs in more than 40 languages.
For more information, visit www.zedler.de

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