Notice2026-07328

Request for Information Regarding Consumer Product Recall Fraud

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
April 15, 2026

Issuing agencies

Consumer Product Safety Commission

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

<html>
<head>
<title>Federal Register, Volume 91 Issue 72 (Wednesday, April 15, 2026)</title>
</head>
<body><pre>
[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]



[[Page 20138]]

=======================================================================
-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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&#160;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&#160;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

[[Page 20139]]

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


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js" defer></script></body>
</html>
Indexed from Federal Register on April 15, 2026.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.