Tackling Trade Fraud: CPSC's Enhanced Criminal Enforcement Initiatives

In a significant address at the 19th International Law Enforcement Intellectual Property Crime Conference held in Bangkok, Thailand, Peter A. Feldman, the Acting Chairman of the U.S. Consumer Product Safety Commission (CPSC), shed light on the agency's robust measures to address the growing challenges posed by trade fraud and dangerous consumer products.

Feldman underscored the increasing complexities in global e-commerce, particularly the trend where foreign sellers circumvent U.S. safety standards and regulatory mechanisms. He expressed that the ramifications of counterfeiting extend beyond mere intellectual property theft; they pose serious threats to public safety. “Counterfeiting is not simply a matter of intellectual property theft,” said Feldman. “It is also a matter of public safety.” This sentiment reflects a broader concern about the entangled dynamics of trade fraud, falsified compliance documentation, and deceptive business practices that jeopardize consumers.

Under the leadership of former President Trump, CPSC stepped up its enforcement actions against hazardous products, resulting in criminal prosecutions that hold companies and their executives accountable for knowingly violating federal product safety regulations. For instance, in a notable case from June 2025, two executives from Gree USA were imprisoned for concealing life-threatening fire hazards linked to malfunctioning dehumidifiers. This defect had been associated with more than 450 reported fires, causing over $19 million in property damages and leading to four deaths. Similarly, Royal Sovereign International was fined $8 million in April 2026 for failing to report hazards related to faulty portable air conditioners imported from China, which were implicated in over 40 fires and one fatal incident.

To bolster its initiatives against trade fraud, CPSC collaborates closely with the Department of Justice (DOJ) and the Department of Homeland Security (DHS). The formation of a joint Trade Fraud Task Force has been pivotal in heightening the enforcement response to these illicit activities. Notably, the DOJ has flagged counterfeit product safety certificates as a key form of trade fraud requiring scrutiny.

The Commission is actively working to combat fraudulent practices in various ways. This includes a newly launched initiative aimed at evaluating counterfeit safety labels and certification marks. Feldman declared that a counterfeit safety mark might render a product look safe, which is a dangerous deception. This speaks to the agency’s broader aim of identifying and mitigating risks associated with such counterfeit products.

Further, the introduction of electronic filing requirements for product compliance certificates in July 2026 enhances CPSC's ability to detect potentially dangerous imports effectively. The agency has also revived its use of Section 12 of the Consumer Product Safety Act to pursue federal court action against products that pose imminent hazards to consumers, emphasizing its commitment to consumer safety.

“Our objective is not to restrict legitimate international commerce,” Feldman clarified. “We want a marketplace in which responsible businesses can compete fairly.” This comprehensive approach underscores the CPSC's mission to ensure that companies that adhere to safety laws operate without being undermined by competitors who evade legal responsibilities.

The conference, organized by INTERPOL and UL Standards Engagement, convened law enforcement officials and industry stakeholders to strategize against the rising tide of intellectual property crime and illicit trade.

About CPSC

The U.S. Consumer Product Safety Commission is a federal agency tasked with protecting the public from unreasonable risks associated with various consumer products. These product-related incidents result in over $1 trillion annually in deaths, injuries, and property damages. Having been operational for over 50 years, CPSC's efforts have contributed to a significant decline in such incidents, reinforcing their role as a guardian of consumer safety in the United States.

For further safety information, updates, and to report dangerous products or related injuries, consumers can visit CPSC.gov.