Amazon Held Accountable for Hazardous Products Sold by Third-Party Sellers on Amazon.com (The U.S. Consumer Product Safety Commission)

Amazon Held Accountable for Hazardous Products Sold by Third-Party Sellers on Amazon.com

Tuesday, July 30th, 2024 Legislation & Regulation Liability Technology

The U.S. Consumer Product Safety Commission (CPSC) has issued a significant decision against Amazon.com, Inc., holding the e-commerce giant responsible for the safety of products sold by third-party sellers on its platform. The Commission’s unanimous vote declared Amazon a "distributor" of more than 400,000 defective items, including faulty carbon monoxide detectors, hairdryers without proper electrocution protection, and children’s sleepwear that violates federal flammability standards. The ruling mandates Amazon to develop comprehensive remediation plans to notify consumers and remove these hazardous products from their homes.

Amazon, which argued it was not a distributor and thus not responsible for the product recalls, must now propose and implement plans to ensure the public is informed about the dangers these products pose. This decision follows an administrative complaint authorized by the CPSC in July 2021 and highlights the company’s significant control over the distribution and customer service of products sold through its Fulfilled by Amazon program. The CPSC’s order requires Amazon to take specific actions, including issuing refunds, processing returns, and providing public notice to mitigate the risks associated with these hazardous products.

This ruling sets a precedent for how online marketplaces manage third-party seller products, emphasizing the legal obligations of platforms in protecting consumer safety. The CPSC will review Amazon’s proposed plans and issue a second order to finalize the notification and remediation process, ensuring the defective products are removed from circulation and consumers are adequately protected.


External References & Further Reading
https://www.cpsc.gov/Newsroom/News-Releases/2024/CPSC-Finds-Amazon-Responsible-Under-Federal-Safety-Law-for-Hazardous-Products-Sold-by-Third-Party-Sellers-on-Amazon-com
SOS Ladder AssistAspen Claims ServiceMid-America Catastrophe ServicesHouston Auto AppraisersWeller Salvage