Request for Information: Consumer Product Recall Fraud

Request for Information Regarding Consumer Product Recall Fraud

DATES:

Submit comments by June 15, 2026.

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.