CPSC Requests Information on Consumer Product Recall Fraud

Content

ACTION:

Notice of request for information.

SUMMARY:

The Consumer Product Safety Commission (Commission or CPSC) is requesting information on fraudulent or abusive conduct associated
with the redemption of consumer product recall remedies (recall fraud). Recall fraud may undermine the effectiveness of recalls,
increase compliance costs for firms, distort recall performance data, and reduce consumer participation in corrective action
plans. This information-gathering effort is intended to inform the Commission's ongoing work to improve recall effectiveness
and reduce unnecessary burdens associated with the administration of recall programs. Through this Request for Information,
the Commission seeks input on the scope of recall fraud, its impact on recall effectiveness, and potential approaches to mitigate
such conduct while preserving consumer access to effective recall remedies.

DATES:

Submit comments by June 15, 2026.

ADDRESSES:

You can submit comments, identified by Docket No. CPSC-2026-0067, by any of the following methods:

Electronic Submissions: Submit electronic comments to the Federal eRulemaking Portal at: https://www.regulations.gov. Follow the instructions for submitting comments. CPSC typically does not accept comments submitted by email, except as described
below.

Mail/Hand Delivery/Courier/Confidential Written Submissions: CPSC encourages you to submit electronic comments by using the Federal eRulemaking Portal. You may, however, submit comments
by mail, hand delivery, or courier to: Office of the Secretary, Consumer Product Safety Commission, 4330 East-West Highway,
Bethesda, MD 20814; telephone: (301) 504-7479. If you wish to submit confidential business information, trade secret information,
or other sensitive or protected information that you do not want to be available to the public, you may submit such comments
by mail, hand delivery, or courier, or you may email them to: cpsc-os@cpsc.gov.

Instructions: All submissions must include the agency name and docket number. CPSC may post all comments without change, including any personal
identifiers, contact information, or other personal information provided, to: https://www.regulations.gov. Do not submit to this website: confidential business information, trade secret information, or other sensitive or protected
information that you do not want to be available to the public. If you wish to submit such information, please submit it according
to the instructions for mail/hand delivery/courier/confidential written submissions.

Docket: For access to the docket to read background documents or comments received, go to: https://www.regulations.gov, and insert the docket number, CPSC-2026-0067, into the “Search” box, and follow the prompts.

FOR FURTHER INFORMATION CONTACT:

Blake Rose, Director, Resources Management and Fast Track Recalls Division, Office of Compliance and Field Operations, U.S.
Consumer Product Safety Commission, 4330 East West Highway, Bethesda, MD 20814; telephone: (301) 504-7613; email: brose@cpsc.gov.

SUPPLEMENTARY INFORMATION:

I. Introduction

The CPSC is charged with protecting the public from unreasonable risks of injury or death associated with consumer products
under its jurisdiction. See 15 U.S.C. 2051, et seq. Consumer product-related incidents result in significant deaths, injuries, and property damage and impose substantial costs
on the U.S. economy. To carry out its mission, the Commission uses a range of regulatory and enforcement tools, including
the approval and oversight of corrective action plans (CAPs) with manufacturers, importers, distributors, and retailers of
consumer products that fail to comply with applicable consumer product safety rules, voluntary standards relied upon by the
Commission, or that contain a defect that could create a substantial product hazard or an unreasonable risk of serious injury. See, e.g., 15 U.S.C. 2064.

Corrective action plans may include repair, replacement, or refund of the purchase price of the product, less a reasonable
allowance for use in appropriate circumstances. See 15 U.S.C. 2064(d). These remedies are intended to promote the prompt removal
of hazardous products from commerce and consumer use. Refunds, in particular, function as an incentive mechanism to encourage
consumer participation in recalls and to reduce ongoing exposure to hazardous products. The Commission recognizes that this
structure may incentivize the legitimate aggregation of recalled products by third parties, which may advance the Commission's
interest in maximizing recall effectiveness, provided such activity reflects efforts to remove hazardous products from consumer
use rather than to exploit recall remedies for improper financial gain. In calendar year 2025, approximately 60 percent of
Commission-approved recalls included full or partial refunds as part of the corrective action plan, reflecting the Commission's
recognition of the important role such remedies play in incentivizing the removal of hazardous products from the marketplace.

II. Background

For purposes of this Request for Information, the term “recall fraud” refers to fraudulent or abusive conduct associated with
the redemption of recall remedies, including the submission of false or misleading information, fraudulent redemptions, or
other schemes to abuse recall programs.

The Commission is aware of indications of recall fraud, particularly in recalls offering monetary refunds. Recall fraud may
be perpetrated by individual actors as well as by organized or coordinated networks, including networks that operate across
jurisdictions or national boundaries and engage in systematic abuse of recall programs. Such schemes may exploit online submission
processes or other automated mechanisms associated with modern recall administration. Such conduct may also increase compliance
costs for recalling firms, undermine the effectiveness of recalls, and discourage firms from voluntarily agreeing to refund-based
or other consumer-friendly corrective actions. In response to concerns about recall fraud, recalling firms may implement additional
verification or documentation requirements to protect against improper payments. While such measures may deter fraudulent
activity, they may also impose burdens on legitimate consumers and reduce recall participation, thereby diminishing the public
safety benefits of corrective action plans.

The Commission recognizes that recall remedies are not intended to provide compensation in a traditional damages framework,
but rather to incentivize the removal of hazardous products from the marketplace and from consumer use. Practices that undermine
this incentive structure, whether through recall fraud or through

  excessive barriers to redemption, may reduce the effectiveness of recalls and compromise consumer safety outcomes.

Accurate measurement of recall performance is an important component of the Commission's oversight of corrective action plans.
The Commission therefore has an interest in assessing the effectiveness of the recalls it approves, including consumer participation
rates and the extent to which hazardous products are removed from use. Recall fraud may distort redemption data and frustrate
the Commission's ability to accurately assess the effectiveness of approved recalls, including whether hazardous products
are being removed from the marketplace.

III. Information Requested

The Commission seeks information from manufacturers, importers, distributors, retailers, recall administrators, consumer advocates,
and members of the public regarding the scope of recall fraud and potential approaches to mitigate such conduct. Comments
should address, but are not limited to, the following:

1. Observed Recall Fraud

• Submission of altered, fabricated, or artificially generated images or other documentation purporting to demonstrate product destruction or eligibility for recall remedies.
• Fraudulent redemption attempts by a single individual or entity exceeding the number of products reasonably in possession.
• Other indicators or patterns suggesting fraudulent or abusive redemption behavior, including activity associated with organized or systematic schemes.
• The extent to which coordinated or commercial acquisition of recalled products affects recall effectiveness, including any associated benefits or risks.

2. Impacts of Recall Fraud

• Compliance costs associated with recall fraud.
• Effects on firms' willingness to agree voluntarily to refund-based or other corrective action plan remedies.
• Impacts on consumer participation rates and overall recall effectiveness.

3. Fraud Mitigation Measures

• Existing tools, technologies, or practices used to detect or deter recall fraud.
• Measures that reduce recall fraud without materially increasing burdens on legitimate consumers.
• Observed tradeoffs between fraud prevention and consumer access to recall remedies.

4. Potential Commission Actions

• Suggested steps the Commission could take, consistent with its statutory authorities, to reduce recall fraud.
• Identification of any legal, regulatory, or operational constraints relevant to addressing recall fraud. The Commission encourages commenters to provide supporting data, examples, or analysis where practicable. Comments should explain the basis for any assertions regarding the prevalence, costs, or impacts of recall fraud. Instructions for submitting comments are provided in the ADDRESSES section of this document.

Alberta E. Mills, Secretary, Consumer Product Safety Commission. [FR Doc. 2026-07328 Filed 4-14-26; 8:45 am] BILLING CODE 6355-01-P

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