CPSC Targets Counterfeit Safety Marks as Prosecutions Hit $8M Fine

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CPSC Targets Counterfeit Safety Marks as Prosecutions Hit $8M Fine

WASHINGTON – October 29, 2026 -- The U.S. Consumer Product Safety Commission is pairing criminal prosecutions with new filing rules to pursue importers that conceal hazards, after an $8 million fine in April 2026 and prison terms of 38 and 40 months in June 2025. Acting Chairman Peter A. Feldman set out the approach in a keynote at the 19th International Law Enforcement Intellectual Property Crime Conference in Bangkok.

Executives of Gree USA received prison terms over concealed fire hazards

Two Gree USA executives were sentenced in June 2025 for concealing fire hazards in defective dehumidifiers. The products were linked to more than 450 reported fires, over $19 million in property damage and four potentially associated deaths.

In April 2026, Royal Sovereign International was ordered to pay an $8 million criminal fine for knowingly and willfully failing to report hazards in portable air conditioners imported from China. Those units were associated with more than 40 fires and one death.

CPSC launched a counterfeit safety label initiative in May 2026

The agency announced an initiative to examine counterfeit safety labels and certification marks, the risks they create and possible enforcement responses. Feldman said, in substance, that a counterfeit mark makes a product appear safe without making it safe.

The Department of Justice has separately identified forged product safety certificates as a form of trade fraud.

Electronic certificate filing began in July 2026

CPSC's July 2026 electronic filing requirements for product compliance certificates are designed to help the agency identify potentially hazardous imports. The Commission has also renewed its use of Section 12 of the Consumer Product Safety Act to seek federal court intervention against products presenting an imminent hazard.

CPSC is working with the Department of Justice and the Department of Homeland Security on international trade fraud. The joint Trade Fraud Task Force cited the Royal Sovereign prosecution among its enforcement results.

Feldman framed e-commerce sellers as the central enforcement gap

Feldman said foreign sellers that evade U.S. safety requirements and operate beyond the reach of traditional regulatory enforcement are a growing challenge in global e-commerce. He said the aim is not to restrict legitimate international commerce, but to prevent compliant companies from being undercut by competitors that evade the law.

INTERPOL and UL Standards & Engagement organized the conference, which brings together international law enforcement and industry representatives.

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