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
Record-breaking congestion in California ports
No quick fix for the shipping crisis 44 freight ships are stuck awaiting entry into California's two largest ports. This is the largest congestion since the beginning of the pandemic. The queue is a result of the labor shortage, COVID-19-related disruptions, and...
E-commerce is too reliant on social media
Consumers don’t buy on social media, new survey indicates E-commerce entrepreneurs are relying heavily on social media to drive sales, but consumers don’t shop there very often A new survey said consumers don’t buy on social media, despite the fact that small...
Amazon continues to ban Chinese sellers
50000 Chinese seller accounts have disappeared from Amazon More than 50000 Chinese seller accounts have been banned on Amazon due to pay-for-praise and other policy violations In May Amazon shuttered some of its largest sellers from China over violations of platform...
