ATLANTA, Ga. (Atlanta News First) - The U.S. Consumer Product Safety Commission (CPSC) wants to launch a nationwide crackdown on recall fraud as fake recall claims hurt honest consumers and businesses.
Recall fraud occurs when people file for recall refunds, repairs or replacements on products they never owned or never returned, according to the U.S. Food & Drug Administration.
The fraud drives up costs for companies and can make recalls less effective for consumers who need them.
CPSC says recall fraud is not a victimless offense because it undermines product safety, drains resources, and makes it harder to get dangerous products out of American homes.
The commission is seeking public comment on what fraud looks like, how it has impacted consumers and businesses, and what can be done to stop it.
The agency said recall fraud may include submission of altered or fabricated images, fraudulent redemption attempts by a single person exceeding the number of products they could reasonably possess, and organized schemes that exploit online submission processes.
The commission said such conduct may discourage firms from voluntarily agreeing to refund-based corrective actions and may reduce consumer participation in recalls.
The agency said recall fraud may also distort redemption data and affect the commission’s ability to assess whether hazardous products are being removed from the marketplace.
The public comment...
The Management of Dangote Petroleum Refinery and Petrochemicals has noted with concern the circulation of unfounded and misleading claims suggesting that its petroleum products are exported to Lom...