A US government body said Tuesday that Amazon is liable under federal safety legislation for dangerous products offered on its site by third-party vendors and distributed by the corporation.
The Consumer Product Safety Commission unanimously concluded that the e-commerce company was a “distributor” of faulty items sold on its website and packed and dispatched through its fulfillment service.
Amazon Is Responsible For Hazardous Items Sold By Third-Party Sellers, US Agency Says
According to the agency, the corporation is legally responsible for the recalls of over 400,000 devices, including hairdryers and defective carbon monoxide detectors. It directed Amazon to develop a system for notifying customers who purchased defective items and removing the objects from circulation by creating incentives for their return or destruction.
According to Emarketer, Amazon accounts for around 40% of all e-commerce sales in the United States. The company offers various things directly to customers and works with roughly 2 million third-party sellers, who account for the majority of sales on the site.
The online shop has been fighting the “distributor” classification since 2021 when the Consumer Product Safety Commission filed an administrative complaint against it for delivering hazardous products.
Amazon Is Responsible For Hazardous Items Sold By Third-Party Sellers, US Agency Says
Amazon argued to an administrative law judge and a five-member commission that it should not be classed as a distributor under the Consumer Product Safety Act. The commission stated that the judge rejected the company’s argument, and Tuesday’s decree affirmed that decision.
According to the commission, Amazon neglected to tell customers about hazardous materials and “did not take adequate steps to encourage” users to return or destroy them, putting them at risk of harm.
SOURCE | AP
