The correct answer is (C).
The new information mentioned is the reports of severe sunburns which clearly demonstrate a hazard to human health.
Since one of the conditions of avoiding having the warning printed is that the "new information does not demonstrate a hazard to human health," a warning should be printed on the products; namely, Dandelion Facial Soaps.
You may reason that answer (D) is correct: that the product should be recalled.
However, this is false in light of the beginning of the answer; namely, "Even if ESS-024's safety was adequately substantiated prior to the reports."
The rule clearly states that only if the safety was not adequately substantiated, a recall warrant must be issued.
Solving Tip:
Pay attention to the "connecting words." For instance, the paragraph and clauses have a structure of:
Something happens UNLESS condition #1 AND condition #2
Therefore, the only way for that "something" to not happen is for BOTH conditions to occur.