What is the term for the fraud in which a company inflates its sales revenue by forcing more products through a distribution channel than it can sell?

Channel stuffing refers to the practice where a company inflates its sales figures by sending more products to distributors than those distributors can realistically sell in a given period. This tactic is used primarily to create an illusion of increased sales and revenue, which can mislead investors and stakeholders about the company's financial health and performance. It is a form of financial manipulation that can have serious repercussions, including legal consequences and damaged reputations.

In contrast, other terms do not specifically describe this practice. Unauthorized sales imply selling without permission, sham sales suggest fraudulent or fictitious transactions, and cutoff fraud relates to the improper recognition of revenues or expenses at the end of an accounting period. None of these other concepts encapsulate the specific act of intentionally overloading distribution channels to inflate sales figures, making channel stuffing the correct term in this context.