Amazon could be held responsible for defective goods sold by third-party merchants

As multiple media in the U. S. have reported, Federal regulators have determined that Amazon can be held responsible for defective goods sold by third-party merchants on its online marketplace, rejecting the company’s position that it’s merely an intermediary between consumers and sellers.

This is a historic decision confirmed this Tuesday by the U.S. Consumer Product Safety Commission who said that the agency unanimously agreed Amazon “fits squarely” within the definition of a distributor of goods, “and therefore bears legal responsibility for their recall.”

As part of the agency’s decision, Amazon is required to develop a plan to notify purchasers and the public about the product hazards, as well as offer shoppers refunds or replacements for the affected products.

Amazon claims it will always guarantee returns

Amazonas currently hosts millions of third-party sellers, who account for approximately 60% of the company’s e-commerce sales. While this has allowed Amazon to bring in record revenue, it has also proven to host counterfeit, unsafe and even expired goods. The company has previously said it invests hundreds of millions of dollars per year to ensure products sold are safe and compliant.

The decision addresses a thorny issue that’s been debated for years. In numerous lawsuits, Amazon has maintained it just serves as the conduit between buyers and sellers on its marketplace and that it’s not involved in the sourcing or distribution of products sold by third-party sellers, removing it from liability.

That has been a successful defense for Amazon in the past, including in a 2018 case concerning the purchase of a faulty hoverboard that exploded and burned down an Amazon shopper’s house in Tennessee. In other cases, federal courts and legislators have said the e-commerce giant should be held liable.

This new piece of legislation could prove the final nail in the coffin for Amazon regarding their current policy on third party merchants, and force the global marketplace to drastically change the way it does businesses.