CPSC Tells Amazon It’s Responsible For Third-Party Products On Its Marketplace

The U.S. Consumer Product Safety Commission (CPSC) recently issued an order against Amazon stating that the company is liable for defective products offered by third-party merchants on its website. In a unanimous vote, the CPSC determined that Amazon was a “distributor” of products that are defective or fail to meet federal consumer product safety standards. Amazon, therefore, bears legal responsibility for the recall of these products. The CPSC cited Amazon for having more than 400,000 products subject to the order. These include faulty carbon monoxide detectors, hairdryers without electrocution protection, and children’s garments that fail federal flammability standards.

The CPSC determined that these products, which are listed on Amazon.com and sold by third-party sellers using the Fulfilled by Amazon program, pose a “substantial product hazard” under the Consumer Product Safety Act (CPSA). Further, Amazon failed to notify the public concerning these hazardous products and did not take adequate steps to encourage its customers to return or destroy them. This left consumers at risk of injury.

Amazon had argued before an Administrative Law Judge and the CPSC that it was not a distributor and bore no responsibility for the safety of the products sold under its Fulfilled by Amazon program. In other words, they didn’t want the responsibility of ensuring that these products were safe.

The CPSC’s Decision and Order will require Amazon to submit proposed plans to notify consumers and the public about the hazardous products. They will also be required to remove the products from the stream of commerce by incentivizing their return or destruction. The CPSC will consider Amazon’s proposed plans and address them in a second order in this case.

Overview of the Decision and Order 

On July 14, 2021, the CPSC authorized an administrative complaint against Amazon alleging that the company distributed specific products that pose a substantial hazard to consumers. The issue was tried before an administrative law judge who ruled that Amazon was indeed a “distributor” of products. The ALJ also confirmed that the products sold by Amazon pose a substantial hazard to the public, and that Amazon is required to take certain steps, including issuing recalls, to protect the public from these hazardous products.

Under the CPSA, if the CPSC determines that a product presents a substantial hazard to the public, it can require a manufacturer, distributor, or retailer of the product to warn consumers about the risks and provide remedies to remove the products from the consumers’ homes and the stream of commerce. In other words, since Amazon was ruled to be a “distributor”, it is subject to these rules.

Talk to a Florida Product Liability Lawyer Today 

If you’ve been injured by a defective or dangerous product purchased on Amazon, you can file a lawsuit against both the manufacturer and the distributor (Amazon) for your injuries. You are entitled to recover damages related to your medical expenses, lost wages, and reduced quality of life. Call the Florida personal injury lawyers at Halpern, Santos & Pinkert today to schedule a consultation and learn more about how we can help.

Source:

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