Amazon to be held liable for defective third-party products
California appeals court subjected Amazon to strict liability for defective products sold by third parties on its marketplace.
The case was filed by Amazon customer Angela Bolger who purchased a replacement laptop battery from Hong Kong-based company Lenoge Technology (E-Life on Amazon’s marketplace) which allegedly exploded and caused her severe burns, reports Quartz.com.
A trial court ruled that responsibility lay not with Amazon but the third-party seller.
The appeals court saw it differently. “Whatever term we use to describe Amazon’s role, be it ‘retailer,’ ‘distributor,’ or merely ‘facilitator,’ it was pivotal in bringing the product here to the consumer,” the ruling stated.
In other words Amazon didn’t merely allow the publication of a product listing but actively stored and shipped the battery in Amazon packaging, writes tamebay.com.
The court also recognized that a buyer can’t communicate directly with a retailer but is forced to do so through the Amazon site with all communications ‘anonymized’.
It must be noted that Amazon will require third-party sellers to disclose their names and addresses, starting from September, 1. This new policy is aimed to help businesses fighting fraud or taking legal action against sellers over counterfeit goods.
Amazon appealed California court’s decision, saying that it wasn’t liable because it didn’t distribute, manufacture or even sell the product.
If Amazon’s appeal is unsuccessful, its business could be dealt a significant blow. If the ruling stands, it opens Amazon to liability in other instances too, such as sales of counterfeit items on its marketplace.
More Amazon news
Shanghai is still under lockdown. Is Guangzhou next?
A shift in China’s COVID-19 policy remains a distant prospect Shanghai is easing its two-week lockdown, but most of its businesses still are closed. The redirection of goods is becoming more difficult and expensive as cargo facilities in other Chinese cities are now...
Amazon will let sellers build independent online stores
Bloomberg reports that Amazon is working on a product that that will let retailers run independent stores. The project hasn’t been announced officially yet, but former company executives told Bloomberg, that Amazon has been working on it since late 2017 and could...
How can New Year holidays in the US and Canada affect cargo delivery dates
Customs and shipping companies working schedule during the New Year Important information for more accurate forecasting of cargo processing speed in the US and Canada during the New Year holidays. Please note that Customs and shipping companies will not work during...
