New Product Safety Regulations and electronic commerce obligations
Obligations of Website Operators and Online Service Providers
Regulation (EU) 2023/988, known as the Product Safety Regulation, introduces new obligations for website operators and online service providers. This regulation aims to enhance safety and protect consumers in the digital context. Below are the main obligations, the effective date, and possible penalties for non-compliance.
Key Duties of Website Operators
1. Transparency and Information: Website operators must provide clear and detailed information about the products or services offered. This includes precise descriptions, prices, and terms of sale. Additionally, they must provide updated contact details and privacy policies that explain how user data is managed.
2. Product Safety: Operators must ensure that the products or services offered meet established safety standards. This involves conducting risk assessments and implementing appropriate security measures to protect users from potential vulnerabilities and attacks.
3. Responsibility for Hazardous Products: If hazardous products are sold that pose risks to consumer health or safety, website operators must promptly inform the relevant authorities and, if necessary, withdraw the products from the market. They must also cooperate in the investigation of safety incidents.
4. Compliance with Regulations: Operators must ensure that their websites comply with all applicable laws, including data protection and product safety regulations. This includes regularly updating practices to align with new regulations and standards.
Obligations Related to Product Safety
1. Risk Assessments: Online service providers must conduct regular risk assessments of the products or services they offer. These assessments should consider potential threats and vulnerabilities that could impact user safety.
2. Notification Mechanisms: Mechanisms must be established to notify users about identified security issues with products. This includes alerts on known vulnerabilities and necessary security updates or patches to mitigate risks.
3. Cooperation with Authorities: Providers must cooperate with regulatory and online safety authorities. This cooperation includes participating in investigations and collaborating on corrective measures when security issues are detected.
Effective Date
Regulation (EU) 2023/988 will come into effect on January 1, 2025. This date marks when website operators and online service providers must comply with the new obligations set out in the regulation.
Penalties for Non-Compliance
1. Financial Fines: In cases of non-compliance with the established obligations, website operators and service providers may face substantial financial fines. The fines can vary depending on the severity of the violation and may be imposed by the relevant authorities.
2. Administrative Sanctions: In addition to fines, administrative sanctions such as temporary suspension or revocation of operating authorization may be applied. These sanctions can affect the ability of website operators to offer their services or products.
3. Damage to Reputation: Non-compliance can cause significant damage to the reputation of website operators and service providers. This damage can affect user trust and market competitiveness.
In summary, Regulation (EU) 2023/988 imposes stringent obligations on website operators and online service providers to ensure product safety and consumer protection. The new regulations, which will come into effect on January 1, 2025, entail significant responsibilities and potential penalties for non-compliance, highlighting the need for adopting appropriate measures to meet the established requirements.
Author: Victor Rosello, Lawyer.
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