40 2024 TSMA What are the consequences of this definition? One key action decision-makers in companies should take is to consider reviewing their existing contractual arrangements within the whole supply chain. They should in particular look at whether the allocation of risks – including the possibility of recourse in the event of being exposed to third-party claims – is still up to date in the light of the increased liability deriving from this new EU-wide law. The GPSR gives an example of the mental health risks that may be posed by digitally connected products for vulnerable consumers, in particular children. The GPSR requires that such kind of products meet the highest standards of safety and also emphasizes that product safety must be guaranteed over the entire lifespan of a product: “When assessing the safety of digitally connected products likely to have an impact on children, manufacturers should ensure that the products they make available on the market meet the highest standards of safety, security and privacy by design, in the best interests of children.” In line with the current practice, the GPSR clarifies that a product is presumed to be in conformity with its general safety requirement if it is in compliance with European standards (or in their absence, with national standards of a member state). However, to be in compliance with applicable safety standards alone may not help a responsible commercial operator from escaping from its liabilities under the GPSR. Will the EU's GPSR require more comprehensive technical product documentation? Since the GPSR does not exempt small enterprises from compliance with its terms and provisions, even small manufacturers will be required to establish a product safety regime. This should be done by documenting all necessary information, which proves that the respective product they place on the market is indeed safe. As is already the case in the EU, any commercial operator selling a product under its own name or brand or substantially modifying a product is treated as a manufacturer, along with the comprehensive legal obligations deriving from such legal definition. Internal risk avoidance management will become even more important than is the case today, with the need to establish more sophisticated internal procedures, guidelines or standards. The GPSR clearly states in this context that such internal processes are the sole responsibility of the respective economic
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