Over the last decade, the Consumer Product Safety Commission (CPSC) has imposed dozens of multi-million-dollar civil penalties on companies under the Consumer Product Safety Act (CPSA) in connection with alleged violations of product safety requirements. Despite administrative disruption in the agency over the past year, CPSC has remained committed to strong enforcement. For example, CPSC issued a record 28 recalls and warnings in a single week in May 2025, covering a wide range of consumer products, including, but not limited to, infant and technology products. CPSC's continued commitment to enforcement underscores the importance of clear understanding and proactive compliance on the part of the regulated community. This article offers five brief tips for consumer product manufacturers, distributors, and retailers to keep in mind when navigating CPSC compliance.
Know the Law and How it Applies to Your Product
The CPSA was enacted to protect the public from unreasonable risks of injury associated with a broad range of consumer products. The CPSA authorizes CPSC to execute this goal by establishing safety standards, managing product recalls, monitoring compliance with safety standards, and prohibiting the sale of noncompliant products.
The term "consumer product" refers to "any article, or component part thereof, produced or distributed (i) for sale to a consumer for use in or around a permanent or temporary household or residence, a school, in recreation, or otherwise, or (ii) for the personal use, consumption or enjoyment of a consumer in or around a permanent or temporary household or residence, a school, in recreation or otherwise." 15 U.S.C. § 2052(a)(5). There are multiple exceptions to this definition – including non-consumer goods, motor vehicles and motor equipment, pesticides, food, and drugs, devices, and cosmetics – but the CPSA's reach remains extensive. Understanding the scope and application of the CPSA is the first crucial step to navigating CPSC compliance.
Pay Attention to Pre-Market Testing Requirements
CPSC establishes specific product safety standards and requires manufacturers and importers to test consumer products before they enter the market. Companies should also be aware of important differences in pre-market testing requirements for children's products and non-children's products.
CPSC defines a children's product as "a consumer product designed or intended primarily for children 12 years of age or younger," taking into consideration intended use, child-appropriate packaging and marketing, custom, and CPSC's Age Determination Guidelines. Children's products must pass initial testing by a third-party, CPSC-approved laboratory, which varies depending on the product type, intended audience, use, and composition. Children's products may also be subject to additional testing, including material change testing, periodic testing, and component part testing, depending on the circumstances.
On the other hand, non-children's products, or general-use products, do not need to be tested in a CPSC-approved laboratory. Instead, any in-house or external laboratory may conduct testing to ensure compliance with applicable safety requirements.
After passing the testing stage, manufacturers and importers must certify compliance with safety standards by providing a written or electronic certificate that accompanies the product or shipment. Manufacturers and importers must provide copies of this certificate to retailers and distributors, as well as CPSC and U.S. Customs upon request.
Facilitate Prompt Reporting Systems to CPSC
Many of the most significant CPSC penalties result from a regulated company's failure to immediately report a product's noncompliance, defect, or risk. Section 2064(b) of the CPSA requires every manufacturer, distributor, or retailer of a relevant product to immediately inform CPSC if it obtains information which "reasonably supports" the conclusion that such product:
- fails to comply with an applicable safety standard,
- fails to comply with any other section of the CPSA or any other CPSC-enforced law,
- contains a defect which could create a substantial product hazard, or
- creates an unreasonable risk of serious injury or death.
"Immediately" means a company must report within twenty-four hours of obtaining reportable information. A company is deemed to have "obtained" such information when an officer or employee receives information and may reasonably be expected to be capable of appreciating the information's significance.
This quick turnaround reporting deadline, coupled with the risk of high penalties, makes it critical for companies to establish efficient reporting systems that facilitate immediate reporting. These systems should include thorough training of compliance personnel, open communication channels between the compliance team and other teams, and a designated reporting procedure.
Understand the Risk of High Civil Penalties
CPSC has imposed exceptionally high civil penalties on companies over the last decade. According to CPSC's online database, CPSC has imposed civil penalties exceeding $15 million at least five times since 2023 for failure to immediately report under Section 2064(b).
CPSC's authority for such lofty civil penalties comes from CPSA § 2069(a)(1), which provides a $100,000 penalty for each knowing violation of reporting obligations, with a maximum penalty of $15 million for any related series of violations. In 2021, CPSC implemented an inflation adjustment, with penalties rising to a maximum of $120,000 per violation and $17.15 million for any related series of violations.
Given CPSC's continued willingness to impose significant civil penalties, companies should prepare internal compliance systems with these enforcement risks in mind and consult with legal counsel when compliance questions arise.
Prepare for AI-Enhanced CPSC Oversight
In its Operating Plan for FY 2026, CPSC establishes a goal to increase the use of artificial intelligence (AI) to improve the efficiency of hazard detection. To achieve this goal, CPSC intends to prioritize deployment of AI tools to "detect recalled products re-listed after removal and track repeat violators" and "expand surveillance of e-commerce platforms to identify and remove banned and recalled products."
As CPSC launches its AI initiatives, companies should prepare for more robust oversight of online marketplaces and expanded enforcement risks. In response, companies can establish their own procedures to monitor online product information, proactively address concerns, and ensure consumer safety.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
