Consumer Product Safety Commission

The Growing Challenge of E-Commerce and Product Safety

CFA Analysis of 2024 CPSC Safety Warnings

CFA Analysis of 2024 CPSC Safety Warnings

In an era of global trade and e-commerce, ensuring product safety is more challenging than ever. Consumer Federation of America’s (CFA) analysis of 2024 unilateral safety warnings reveal startling changes in product safety and underscores the urgent need for action.

The Recall Process

The Consumer Product Safety Commission (CPSC) plays a critical role in safeguarding the public from hazardous products. However, most CPSC recalls are voluntary, meaning that CPSC cannot unilaterally remove unsafe products from the market without negotiation. If a company refuses to cooperate with CPSC, the CPSC has the option to pursue a mandatory recall through an administrative process or even by filing a lawsuit in federal court. But here’s the catch: the CPSC lacks the authority to force foreign manufacturers and sellers to act. As a result, manufacturers and sellers—especially those based in China—can often ignore communications and refuse to cooperate with the CPSC. In cases where companies refuse to voluntarily recall products, there’s little recourse for CPSC.

The Rise of Unilateral Safety Warnings

In recent years, the CPSC has been left with no choice but to issue unilateral safety warnings to mitigate the risk of unsafe products. When a manufacturer fails to cooperate with a recall, the CPSC can alert the public to the potential dangers through these warnings.

The number of unilateral warnings has increased significantly in the past few years, particularly in response to products sold via e-commerce platforms. In 2020, CPSC issued three warnings. Based on CFA’s analysis of 2024 data, CPSC issued a staggering 64 warnings. Most of the warnings were manufactured in China and sold online.

  • 42 of the 64 unilateral safety warnings addressed products from China
  • 61 of the 64 unilateral safety warnings addressed products sold online
  • 43 of the 64 unilateral safety warnings address products sold on Amazon

Beyond the concerning number of unilateral safety warnings last year, the types of injuries associated with the products is extremely concerning. Last year’s unilateral safety warnings included a product that caused a fatal brain injury of a high school student when a pole from a soccer goal entered the child’s eye cavity during a fall and the death of an elderly couple from an alcohol-fueled tabletop fireplace.

Unfortunately for consumers, unilateral safety warnings are far from ideal. Unlike formal recalls, unilateral safety warnings do not provide clear remedies, such as refunds, repairs, or replacements. Consumers are left with unsafe products and no recourse. Further, unilateral safety warnings do not garner the attention recalls do. Finally, because unilateral safety warnings are not formal recalls, consumers may not fully understand the significance and ignore the warning altogether.

The E-Commerce Challenge

One of the key reasons behind this rise in safety warnings is the increasing volume of products sold online. E-commerce has made it easier than ever for foreign manufacturers, particularly those in China, to reach U.S. consumers. Unfortunately, this has meant more potentially unsafe products slipping through the cracks.

Last week, CFA wrote about the need for more to action to prevent the flow of unsafe imported consumer products. More specifically, under the current de minimis exemption, products valued under $800 enter the U.S. with minimal inspection or processing by Customs and Border Protection (CBP). These shipments are effectively free from tariffs and taxes, and their contents are often not fully assessed for safety risks. By contrast, shipments processed through formal entry must provide detailed information about the goods being imported, which allows officials to assess the potential danger of a product. Since the de minimis threshold was raised from $200 to $800 in 2016, the number of such shipments has skyrocketed, from 153 million in 2015 to more than 1 billion in 2023. The exponential growth has overwhelmed CBP and CPSC, hindering their ability to screen and prevent dangerous products from entering American homes.

What Needs to Change?

The increasing number of unilateral safety warnings highlights the urgent need for action. The current recall process must be re-envisioned to protect consumers and ensure that unsafe products are removed from the market. Online marketplaces must be required to vet thoroughly the sellers using their platforms to reach American consumers. There should be enhanced requirements for higher risk product classes, such as children’s products, safety focused products (like helmets and CO alarms), and products that can cause fire (like lithium ion batteries). Online marketplaces and the sellers using such platforms must also be required to act swiftly when dangerous products are identified.

Without strong action, the U.S. will continue to struggle with protecting consumers from dangerous goods.