CPSC Modernizes with AI, Raising New Compliance Risks

The U.S. Consumer Product Safety Commission (CPSC) recently announced a significant strategic shift: the agency plans to use artificial intelligence in overseeing consumer product safety. Moving beyond its traditional reliance on complaints and company reports to identify potentially hazardous products, CPSC now plans to use predictive analytics and machine learning to detect hazards earlier. The agency has stated it will draw on data from social media, online reviews, and import records to anticipate risks rather than wait for them to materialize.

CPSC has emphasized that the rise of global supply chains has made spotting and tracking hazardous products far more difficult, creating a need for more sophisticated technology. As part of this effort, the Commission plans to deploy generative AI systems that learn and improve over time, enabling regulators to focus on higher-risk products and streamline enforcement. But this approach carries obvious risks. Because social media is prone to misinformation and bot activity, questions remain about the reliability of the data and the potential for false positives.

For companies, the implications are clear: CPSC is preparing to act earlier in the product life cycle and rely on signals other than direct consumer complaints to initiate inquiries. Businesses could therefore face scrutiny sooner and in less predictable ways. They may also find themselves defending against investigations triggered by flawed or misleading data, making robust documentation and clear communication with the agency more important than ever. How CPSC ultimately manages issues like false positives will be critical, but the trajectory of oversight is clear —regulatory scrutiny is poised to become less predictable and more sweeping, driven by algorithms that do not wait for traditional red flags.

At the same time, CPSC is navigating extraordinary institutional uncertainty. Earlier this year, President Trump removed three commissioners. Another resigned shortly after, leaving only Acting Chairman Peter Feldman to lead the agency. With CPSC reduced to a single commissioner, questions remain about how effectively it can pursue new initiatives.

Exactly how CPSC will implement AI insights in its enforcement efforts remains uncertain. But CPSC’s anticipated shift towards AI would represent a significant turning point for product safety regulation. While the details of implementation remain uncertain, companies should expect CPSC’s reliance on AI to expand in the coming years. We will continue to monitor these developments closely and assess how proactive, algorithmic oversight may reshape regulatory risk.