Request for Information Regarding Consumer Product Recall Fraud
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Issuing agencies
Abstract
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.
Full Text
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<title>Federal Register, Volume 91 Issue 72 (Wednesday, April 15, 2026)</title>
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[Federal Register Volume 91, Number 72 (Wednesday, April 15, 2026)]
[Notices]
[Pages 20138-20139]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-07328]
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CONSUMER PRODUCT SAFETY COMMISSION
[Docket No. CPSC-2026-0067]
Request for Information Regarding Consumer Product Recall Fraud
AGENCY: Consumer Product Safety Commission.
ACTION: Notice of request for information.
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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: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. 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: <a href="/cdn-cgi/l/email-protection#d1b2a1a2b2fcbea291b2a1a2b2ffb6bea7"><span class="__cf_email__" data-cfemail="83e0f3f0e0aeecf0c3e0f3f0e0ade4ecf5">[email protected]</span></a>.
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: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. 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: <a href="https://www.regulations.gov">https://www.regulations.gov</a>, 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:
<a href="/cdn-cgi/l/email-protection#88eafae7fbedc8ebf8fbeba6efe7fe"><span class="__cf_email__" data-cfemail="c7a5b5a8b4a287a4b7b4a4e9a0a8b1">[email protected]</span></a>.
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
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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
<bullet> Submission of altered, fabricated, or artificially
generated images or other documentation purporting to demonstrate
product destruction or eligibility for recall remedies.
<bullet> Fraudulent redemption attempts by a single individual or
entity exceeding the number of products reasonably in possession.
<bullet> Other indicators or patterns suggesting fraudulent or
abusive redemption behavior, including activity associated with
organized or systematic schemes.
<bullet> 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
<bullet> Compliance costs associated with recall fraud.
<bullet> Effects on firms' willingness to agree voluntarily to
refund-based or other corrective action plan remedies.
<bullet> Impacts on consumer participation rates and overall recall
effectiveness.
3. Fraud Mitigation Measures
<bullet> Existing tools, technologies, or practices used to detect
or deter recall fraud.
<bullet> Measures that reduce recall fraud without materially
increasing burdens on legitimate consumers.
<bullet> Observed tradeoffs between fraud prevention and consumer
access to recall remedies.
4. Potential Commission Actions
<bullet> Suggested steps the Commission could take, consistent with
its statutory authorities, to reduce recall fraud.
<bullet> 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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