Running a consumer products retail business is hard work. In addition to the day-to-day challenges facing any business, the applicable regulatory environment can be a shifting, confusing morass that befuddles even the most experienced consumer products retailer professionals.
Among the regulators actively engaged in retailer compliance, the Consumer Product Safety Commission (CPSC) may lead the way in terms of enforcing and exacting regulatory standards and obligations. Knowing which laws and regulations apply and how is critical to avoiding regulatory scrutiny or mitigating exposure when it comes. Here are seven key steps to take to protect your consumer products retail business:
- Retailers have reporting obligations to the CPSC with respect to product safety issues. While retailers have always had a duty to report, for years based on selective enforcement patterns, retailers were able to simply point to manufacturers of products with safety issues as the parties responsible and were likely to be left alone. No longer. Under Section 15 of the Consumer Product Safety Act, retailers, like manufacturers, importers, and distributors, must timely report to the CPSC when they learn of information that reasonably supports the conclusion that a product fails to comply with certain mandatory or voluntary standards, contains a defect that could create a substantial product hazard, or creates an unreasonable risk of serious injury or death. 15 U.S.C. § 2064(b). If a retailer fails to report, they risk steep civil penalties of up to $120,000 per knowing violation and $17,150,000 for a series of related violations. 16 C.F.R. 1119; 86 Fed. Reg. 68244. At bottom, the CPSC expects retailers to report product safety issues.
- A retailer report to the CPSC may not be required when the retailer has actual knowledge that the CPSC has been adequately informed of the potential product safety issue by the manufacturer of the product. 15 U.S.C. § 2064(b). Be careful to obtain written confirmation that an adequate report was made as accepting a manufacturer’s word that it reported a potential product safety issue to the CPSC, without written confirmation (and even a copy of the report itself), is risky.
- Retailers of Chinese-manufactured consumer products should exercise caution given the CPSC’s stated interest in stopping Chinese “junk” products from entering the United States and being sold to consumers. For reference, Chinese-manufactured products have accounted for about 66% of the product safety warnings and recalls in 2025 with almost 92% of those recalled Chinese products linked to e-commerce platforms.1
- The role of “importer of record” comes with additional responsibilities and risks, including with respect to General Certificates of Conformity, finished product certificates, and electronic filing requirements. 15 U.S.C. § 2063(a)(3), (g)(3); 16 C.F.R. § 1110.13; 90 Fed. Reg. 1844 (Jan. 8, 2025); 16 C.F.R. §§ 1110.9, 1110.11; and see 90 Fed. Reg. 1844-45 (Jan. 8, 2025). Retailers should fully consider these responsibilities and risks before taking on the importer of record role for any given product.
- Retailers of products that utilize lithium-ion batteries, particularly electromobility devices like e-bikes and scooters, should ensure their manufacturers are compliant as the CPSC is paying special attention. About 29% of product safety warnings announced between January and September 2025 (approximately 24/83) and 12% of recalls announced during the same time (approximately 36/298) involved products with lithium-ion batteries.2
- Retailers are responsible for ensuring that they do not sell products that have been recalled by the CPSC. If a retailer fails to meet that obligation, it may face civil penalties and potential liability for any injuries that occur as a result of those products. Regularly checking resources like https://www.saferproducts.gov and signing up for the CPSC’s weekly recall postings is a good first step to staying current on recall activity.
- Retailers should develop robust product safety compliance and document retention protocols so that when, not if, a product safety issue arises it can timely respond, demonstrate compliance, and keep both its business and customers safe.
Foley’s multi-disciplinary and multi-jurisdictional team is prepared to help retailers accomplish their legal and business strategies with respect to CPSC compliance. To discuss how CPSC regulatory requirements may impact your business, contact Erik Swanholt ([email protected]), Kristin McGaver Sikora ([email protected]), or Megan Chester ([email protected]).
1 Peter A. Feldman, Trump-Vance CPSC Breaks Biden Era Recall Record More Than 100 Days Ahead of Schedule (Sept. 18, 2025), https://www.cpsc.gov/About-CPSC/Chairman/Peter-A-Feldman/Statement/Trump-Vance-CPSC-Breaks-Biden-Era-Recall-Record-More-Than-100-Days-Ahead-of-Schedule.
2 These numbers are based on a review of the CPSC’s Recalls & Product Safety Warnings data available at https://www.cpsc.gov/Recalls.
