In recent years, dozens of people who say they were harmed by products, such as exploding hoverboards, defective batteries or faulty dog collars, have sued Amazon for compensation. The company argues it’s not liable, pointing instead to the third-party sellers that technically sold the items and are sometimes based overseas beyond the reach of US jurisprudence. Several courts have agreed with Amazon, citing product liability laws that never contemplated online shopping or digital middlemen.
The battle involves an oft misunderstood feature of Amazon’s retail empire: Most items sold on Amazon.com aren’t owned by the Seattle company. Technically, they’re sold by third-party sellers, a category that encompasses established brands, mom-and-pop crafts makers and hundreds of thousands of Chinese manufacturers and distributors. Amazon charges a commission and other fees to list on the site.
Now the Feds are side-stepping that defense and lasering in on Amazon’s vast logistical operation. In the lawsuit filed last week, the CPSC says products stored and shipped by Amazon meet the distributor definition as laid out in the Consumer Product Safety Act, giving the agency the power to compel Amazon to cooperate with recalls of third-party products and levy penalties when it fails to do so.
In emailed statements, Amazon said that, by contacting customers about defective products and issuing refunds, it had already done what CPSC aims to achieve with a formal recall.
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