Frequently Asked Questions (FAQs) About CPSC Recalls

When a company reports a safety issue to the Consumer Product Safety Commission (CPSC), the recall process begins with the company submitting a report detailing the nature of the defect, any associated hazards, reported incidents or injuries, and the number of affected units. This report can be submitted through the SaferProducts.gov portal or directly to the agency. The CPSC then reviews the report, investigates the potential risks, and determines whether the product poses a substantial hazard. During this stage, the company may be required to provide additional data or conduct internal testing to aid in the assessment. If a recall is deemed necessary, the company and the CPSC collaborate to negotiate the terms.

Most recalls are voluntary, meaning the company works with the CPSC to develop a Corrective Action Plan (CAP). This plan outlines how consumers will be notified, whether through press releases, social media, or direct outreach, and specifies the remedies available, such as refunds, repairs, or replacements. Once the recall is officially announced, the CPSC publicizes it through its website, news outlets, and social media, while the company ensures effective consumer notification and product retrieval. Throughout the recall process, the CPSC monitors compliance, requiring the company to submit progress reports detailing how many consumers have been contacted and how many defective products have been addressed.

If the recall is successfully executed, the CPSC may close the case, but if the company fails to comply, the agency has the authority to take legal action, which may include fines or a mandatory recall. Proper adherence to the recall process helps protect consumers and mitigates risks associated with defective products. Would you like guidance on preparing for a recall or best practices for consumer communication?

Almost all recalls conducted in cooperation with the the Consumer Product Safety Commission (CPSC) are voluntary. Companies typically understand the benefits of quickly removing potentially dangerous or non-compliant products from the marketplace to protect the health and safety of their consumers and the value and reputation of their brand.

Some companies choose not to engage with the CPSC or dispute the CPSC’s technical findings or recommendations. in those cases, the CPSC can choose to bring an administrative lawsuit to enforce a mandatory recall. However, since litigation is costly and time-consuming, the CPSC will often resort to using public pressure to bring about a recall through the use of “Product Safety Warnings”, also known as unilateral press releases. Such actions can be harmful to the company’s brand and, increasingly, to the ability of the company to continue to operate and sell on major websites and platforms. Retailers and platforms prefer to cooperate with the CPSC and, even if a company chooses not to conduct a voluntary recall, a company’s listing may be shut down and/or a company may be banned from selling on a website or online marketplace.

No, not all recall necessarily require providing refund to consumers. It is often acceptable to engineer and provide a repair part or a full replacement instead of a full refund.

The Consumer Product Safety Commission (CPSC) does not mandate a specific remedy action for all recalls. According to the law, a company can choose between offering a refund, repair, or a replacement product.

For a recall to be conducted by a company in cooperation with the CPSC, however, the CPSC must review the proposed repair or replacement and agree that it is adequate.

If the CPSC disagrees with the company and does not approve the company’s proposed remedy, such as a product repair or replacement, the company can propose alternative remedies, such as a product replacement or a product refund.

If, however, the CPSC disagrees with the company and the company does not offer an alternative choice, the CPSC may seek to force the company to act.

The CPSC may threaten a company with a potential lawsuit to enforce a mandatory recall. or the CPSC may use public pressure to bring about a recall through the use of “Product Safety Warnings”, also known as unilateral press releases. Such actions can be harmful to the company’s brand and, increasingly, to the ability of the company to continue to operate and sell on major websites and platforms. Retailers and platforms prefer to cooperate with the CPSC and, even if a company chooses not to conduct a voluntary recall, a company’s listing may be shut down and/or a company may be banned from selling on a website or online marketplace.

Recalls happen frequently. There are typically between 250-350 recalls a year in the United States. The vast majority of companies are able to afford the recall and do not go bankrupt. Because companies can choose to repair or replace products, all recalls do not involve a full refund of the purchase price. Oftentimes, consumers no longer have a recalled product in their possession. Because the purpose of a recall is to remove a dangerous product, if a consumer no longer has a product, then the consumer is not entitled to a refund of the product.