European Union Safety Legislation: The Affects on Marketing in the European Union
The European Union is one of the most influencing economic blocks in the world nowadays. The initial purpose of creation of the European Union was stability, prosperity, and peace in Europe. After fifty years of its existence EU has reached impressive results in heading to this goal. Higher living standards, single European currency – the Euro, single Europe-wide market, and strengthened voice of Europe in the world, - these are only some of these results. The position of the European Union on the global market is of great significance, as for the legislation within this area provides the appropriate conditions for the countries involved to operate successfully on the international economic space. Due to the numerous efforts of the governments of countries within European Union, the alliance became this powerful. 
There are five institutions in the European Union, each responsible for the separate branch. The European Parliament is the institution elected by the Member States’ peoples. The governments of the Member States are represented by the Council of the European Union. The executive body of the European Union and its driving force is the European Commission. The Court of Justice ensures compliance with the law. And the Court of Auditors controls lawful management of the budget of the European Union. Each of these institutions plays a specific role in shaping inner and outer relations of European countries.
Because European countries became as the single free trade and economic area, the necessity for creation of the single legislation appeared in order to regulate processes of all kinds of operations. It concerns the legislation referring to the safety of products as well. Aimed at consumer protection, the rules for the product safety are of significant importance in the European Union. The European Commission being the legislative body of the EU recognized the necessity of the new laws concerning safety of products. As the result there was adopted the new European Union General Product Safety Directive (GPSD) in the year 2001. It came into force three years later in January 15 in 2004. One difference of this new legislation is putting obligation on the suppliers to inform authorities about the unsafe products, and then remove them from the market.
The major purpose of the EU General Product Safety Directive is to control safety of all the kinds of consumer products except food, being controlled by the White Paper of the European Commission. The GBSD sets the appropriate safety requirements for consumer products, including most of household products like furniture or textiles, childcare items, equipment for sports and playgrounds, cigarette lighters and so forth. The necessity of the enactment of new regulations was strengthened with the fact that the European Commission has often received notifications of the unsafe or dangerous products; approximately hundred and fifty every year. These notifications were mostly associated with risks of electric shocks, fires, choking, and suffocation. Toys and electric products and appliances headed the list of dangerous products. Thus, the Directive 92/59/EEC was modified, and the new GPSD was enacted to establish the communication with the public of information on product safety collected by the member countries and the European Commission. The Commission now pays more attention to the degree of consumer protection for all the countries-participants of the EU. The purpose is to get the same level of product safety for the entire European Union. It is possible to reach by such means like more tight cooperation between national authorities, strengthening the early-warning plan for dangerous products, providing the alternative to involve third countries and some others. However, the Member States are having more authority now to implement new product safety rules. But let us focus on the new legislation itself and the main rules and principles of the European Union General Product Safety Directive.
The distributors are now obliged legally to turn to the authorities in case of realizing the supplied product is unsafe, and to cooperate with the authorities in tracing and removing products being of any danger. After identifying a dangerous product with a serious risk requiring rapid action, the European Commission is able now to impose the emergency ban for the term up to one year, unlike three months’ limit under the previous GPSD. The Commission can now act with no request from the Member State like it was previously but on its own decision. According to the new GPSD products that were put under the emergency ban are not allowed to export from the European Union to the third countries. The new GPSD requirement force the member states as a general rule to make all the information on product safety gathered by their authorities along with the Commission available to the public (with very few exceptions). The effectiveness of the new rules stand in the stronger cooperation among the national authorities of the EU countries, hence the establishment of the system of rapid circulating of information related to the unsafe products within the European Union (RAPEX – rapid exchange of information). In the case if there is any product posing serious danger the Commission is now immediately informed. It necessarily alerts all the Member States and also may involve third countries into the system of RAPEX.
All the above information is related to the new product safety rules in the European Union, meaning new General Product Safety Directive (Directive 2001/95/EC). However, this Directive is only the revision of the original General Product Safety Regulations (Council Directive 92/59/EEC), enacted in the year 1994. In the GPSD there are only the newer requirements for the Regulations of the 1994.
The implementation of the new safety legislation in the European Union affected deeply the way suppliers market their products, because of the great impact of this legislation on the marketing policy in general. Different producers and importers are changing their marketing strategies now in order to comply their products to the new regulations. The companies operating on the European marketing recognize that the requirements of the new consumer product safety issue affect the marketing of these products. Thus, the companies that produce high-quality consumer goods and have few competitors on the market have more chances to succeed in the conditions of new safety legislation. For instance, the largest producer of the nappies in the United Kingdom, Pampers and Huggies brand, still increases its sales within European Union during last years. In spite of declining of the birth rate in the UK, which leads to the reducing demand, the company is planning to expand. Because of the new requirements concerning product safety, there are very few chances that any new competitors would appear on this market segment. Because of the increased concern of the consumer protection the Community is very suspicious now towards new products, especially children’s commodities concerning child healthcare. Therefore, Pampers and Huggies feel secure to develop new marketing strategies for expansion, even though the existing inappropriate conditions, because of being sure for the high quality of their products. 
The General Product Safety Regulations have the primary goal to protect the consumers from unsafe products by forcing suppliers to provide delivering of products considered being safe in normal or reasonably foreseeable use. This expression means that the product must be safe when using by potential consumer in general or when using by some certain group of consumers with the appropriate reasonable restrictions from the producer. The General Product Safety Regulations cover new and second-hand consumer products except for the products included in the specific European safety legislation (like Food Safety legislation). According to the GPSR, the product to which the regulations apply include (but not only) clothing, medicines, primary agricultural and horticultural products, DIY tools and equipment, food and drink, household goods, nursery goods, chemicals and pesticides and motor vehicles. The enforcement of these regulations lies in the sphere of responsibility of the Local Authority Departments of Trading Standards. As we already mentioned, the General Product Safety Directive of 2001 (2001/95/EC) was the revised version of the General Product Safety Regulations of the year 1994 (Directive 92/59/EEC). Though being enacted in the year 2001, the GPSD was to come to force only in the year 2004 and was not implemented widely yet in all the European countries since then. However, the European Union Commission is planning to implement the new Regulations in order to replace the General Product Safety Regulation of 1994. The new Regulations are expected to enact in autumn of the 2005. And we can surely expect new affects of this legislation on marketing.
There is a good example illustrating the impact of the GPSR on the marketing and the way the companies put products on the market. The new law to the great extent affected the market segment of the nutrition and food supplements. The new safety legislation brings changes to this market by three major ways. These are the new harmonized EU Standards for food supplements formerly being regulated on the level of the particular Member State, the new EU food supplements’ labeling rules with specific new requirements, and the changes in registration and notification systems of the Member countries. In practice it means that the marketing perspective of future development of the food supplements will depend on the particular European country. As for the former safety legislation was rather different in the Member States, the new EU regulations for the entire European Community would bring changes towards both more and less strict ways. For example in the UK this legislation was rather liberal previously and the unified rules would affect in more restricted requirements for the product safety of the food supplements.
Now let us focus on the practical side of this issue, particularly on what is the affect of the Product Safety Regulations on both consumers and suppliers and what actions is this Directive provoking. For all the distributors who aim their products at the European Union market the EU Safety legislation does not look attractive, especially the new GPSD. It is because the rules were restricted to the great extent as from the standpoint of the companies that import their products to the Member States of the European Union. By the end of the year 2004 all the EU countries did ratify this new revised legislation, thus the companies involved in the economic relations with the European Union Member States are facing the necessity now to accept and comply all the renewed regulations concerning the safety of the products supplied. Only for those who succeed in passing this exam of acceptance the requirements for the imported consumer products the access to the European Market may be available. As for numerous consumer goods’ production involve more than only one original producer, there are many kinds of products considered to be made not in the only one original country, consisting of the details and materials produced in countries of the opposite globe’s hemispheres. This is caused by the deepening of relations within the international economy and the global market integration. All the products that any consumer may purchase and use in the European Union, whether it is the product of the Member Countries or the imported production, must comply with the certain requirements of the appropriate authorities. These requirements are represented whether by National standards of the country of origin if manufactured in the European Union or by the regulations of the European standard if produced outside the Eurozone. However, the singe standard regulations within the European Union are not accepted yet, and those that are in use now usually base on either British Standards or on the Standards on the particular country’s Standards. The European Union is now working on harmonizing all the existing standards within Eurozone and transforming them into the Eurowide format. 
The obligations of the suppliers, whether it is the manufacturer or the importer, became more strict now after the European Commission accepted the revision of GPSR. The distributors now are responsible for the safety of the products they supply the same way the manufacturers were previously. There appeared many of the new key points for the producers they have to watch out and do not miss while placing their products on the European market. First of all the supplier has to be able to trace the product supplying chain backwards to the origin if it is considered potentially dangerous for the consumer. Moreover, the supplier is obliged now to provide consumers with all the information needed about the product safety in order to minimize risks connected with consuming potentially unsafe goods. If you own business and target your production onto the European market, you would have to come through numerous procedures of obtaining appropriate certificates to ensure your product is safe for the consumers. Thus, in case you succeed in it you would definitely be happy finally to market your product being sure about the safety of the products you supply. From the other hand, if you fail in acceptance of all the obligations required it would be enough for the tough penalties as for non-compliance is a subject for the criminal prosecution. Ignoring the responsibilities could result in prohibition for the future operations on the market within the European Union, heavy fines and suspension in the case of recognizing potentially dangerous products in your deliveries, whether it is only few details, materials or even improper packaging. Because no one is willing to pass through such unpleasant procedures, you would try your best to accept your responsibility and conform safety of your products by obtaining appropriate certificates. This is the only way you can put your product on the European market. 
Therefore, after the European Union General Product Safety Regulations enactment in the year 1994, and subsequently the revision of EU GPSR in the year 2001 by the EU General Product Safety Directive that came into force in the 2004, the conditions of operating on the European market have changed. With no specific regulations the opportunity for the importers and manufacturers of non-quality products has reduced significantly. Because of the recently tightened requirements for the consumer products in Europe we can predict the very soon exemption of the EU market from cheap and non-quality goods, both produced in the member countries and imported products. These regulations provide the companies that supply high-quality goods with the opportunity to aim their products to the larger area within the European Union and to distribute the production more widely. Thus, if you supply the consumer products of high quality and you plan to import your production to one of the twenty-five countries belonging to the European Union, you have rather good chances to succeed placing your product on the European Market. After you accept all the requirements concerning the safety level of your product and obtain the appropriate certificate from the National Standard Committee of the country you import your production you would find yourself successfully operating within European market supplying the safe and quality goods to the European consumers.
Now let us imagine a supplier of the consumer goods (Mr. Lee) who is planning to expand his business and target his product to the European market, in particular on the United Kingdom. Being from China himself, he is supplying the “Head” sports apparel produced in China. Mr. Lee is hoping to benefit from the expansion of his business because he counts on the low prices of his product. As being in this case the distributor of the imported product, Mr. Lee will face many problems at once. His product will have to be accepted by the safety product regulations of the European Union for placing it onto the UK market, as for the EU safety legislation, in particular the EU Safety Product Standards, are based on the United Kingdom Standards. I am almost sure that Mr. Lee would fail putting his products on the EU market because of at least two reasons. First is that his product is not able to survive on the space of competitive market of the UK, because there are many similar goods of much better quality on the market and it will be impossible to leave the competitors behind. Second and major reason is that it would be very difficult for Mr.Lee to obtain all the safety standard certificates needed for operating within the European market. Because the imported products are inspected twice more carefully now, the sportswear from China under the “Head” name would look more than suspicious from the standpoint of quality for the Commission’s Representatives. As for “Head” is the Italian company, the authentic products of this brand would be of Italian origin. All the original products of this producer have already complied with the European Standards, the consumers are sure to purchase the high quality safety sportswear from the Italian manufacturer. 
Hence, the acceptance of the new Safety legislation brings more difficulties for the suppliers, targeting their products on the European market though provide more protection for the consumers within the European Union countries. According to the new legislation on the product safety, the producers from the European union as well as the suppliers that import their products to the European Market. The compliance of all the kinds of consumer products to the new regulations will be restricted, the obligations of the suppliers as well as the consumers will demand more co-operation among the manufacturers and providing customers with all the information about the potentially unsafe products. The marketing policies of the manufacturers will depend now on the Member State they aim to and on the previous legislation of this country. Because of the soon acceptance of the unified harmonized European standards on the product safety these regulations will be changed in every separate country in different ways. Within the states of more liberal former legislation, such as the United Kingdom or the Netherlands, the requirements will be restricted as far as in the member states with previously more strict requirements on the product safety like France, the legislation would become more mild. Moreover, as for the imported products will meet more suspicious attitude concerning the level of safety for the consumer health, there is expected the exemption of the European market from cheap and low-quality products from outside. 
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