> What if a batch of products is determined to have some QA problems?

Not covered by this regulation in spirit and (probably, haven't read it yet) in text. The spirit of the regulation is targeting fast-fashion on-prem retailers (think H&M, Primark, Zara and the likes) and online retailers like Shein, who have heaps of products that just aren't sold because they're not wanted - and also the occasional luxury brand trying to maintain scarcity [1].

> but for a while we found ourselves honoring warranty claims for items that, ironically enough, had already been warrantied once and then “recycled” by our recycling service.

Yikes. That's something worth filing a lawsuit claim or at the very least terminating the business relationship.

[1] https://theweek.com/95179/luxury-brands-including-burberry-b...