Home Amazon told by federal authorities it bears responsibility for safety of all items it sells

Amazon told by federal authorities it bears responsibility for safety of all items it sells

tl;dr

  • U.S. authorities ruled Amazon responsible, not third-party sellers, for faulty items sold on its marketplace.
  • The U.S. Consumer Product Safety Commission found Amazon failed to inform the public about 400,000 defective products.
  • Amazon must notify consumers about hazardous items and provide refunds or replacements, but plans to appeal the decision.

Amazon has been told by U.S. authorities that it holds the responsibility, not third-party sellers, for any faulty items sold on its online marketplace. 

The U.S. Consumer Product Safety Commission announced the finding this week, ruling that the global e-commerce giant failed to adequately inform the public about more than 400,000 defective products. 

The commission is the authority to rule on dangerous items sold in the United States, with the remit to order a recall on any hazardous items.

As part of a statement released by the CPSC on Tuesday, it relayed that a judge sided in its favor, placing responsibility on Amazon alone as a distributor of third-party products. The findings declared the company’s notice to customers on items they had purchased – and “potential” safety issues – was unacceptable and did not go far enough to protect consumers.

This verdict comes after years of legal wrangling between Amazon and independent sellers – which make up around 60% of the ubiquitous online marketplace – disputing which party was liable for such faulty products. 

“Amazon failed to notify the public about these hazardous products and did not take adequate steps to encourage its customers to return or destroy them, thereby leaving consumers at substantial risk of injury,” said the CPSC statement. 

It continued, “Amazon must now develop and submit proposed plans to notify purchasers and the public about the product hazards, and to provide refunds or replacements for these products.”

Amazon plans to contest the ruling

Conversely, the tech giant (which confirmed a $2 trillion market cap on June 26) voiced its disappointment with the ruling and confirmed it would seek to appeal the decision. 

As it stands, the CPSC has outlined how Amazon now must submit a proposed plan to inform consumers about faulty products and to remove them from sale, online.

Certain products cited in the CPSC crackdown include carbon monoxide detectors which do not function, children’s pajamas that could catch fire and hair dryers that could electrocute a user if submerged in water.

Image credit: Via Ideogram

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the gambling and blockchain industries for major developments, new product and brand launches, game releases and other newsworthy events. Editors assign relevant stories to in-house staff writers with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Graeme Hanna
Tech Journalist

Graeme Hanna is a full-time, freelance writer with significant experience in online news as well as content writing. Since January 2021, he has contributed as a football and news writer for several mainstream UK titles including The Glasgow Times, Rangers Review, Manchester Evening News, MyLondon, Give Me Sport, and the Belfast News Letter. Graeme has worked across several briefs including news and feature writing in addition to other significant work experience in professional services. Now a contributing news writer at ReadWrite.com, he is involved with pitching relevant content for publication as well as writing engaging tech news stories.

Get the biggest iGaming headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Gambling News

    Explore the latest in online gambling with our curated updates. We cut through the noise to deliver concise, relevant insights, keeping you informed about the ever-changing world of iGaming and its most important trends.

    In-Depth Strategy Guides

    Elevate your game with tailored strategies for sports betting, table games, slots, and poker. Learn how to maximize bonuses, refine your tactics, and boost your chances to beat the house.

    Unbiased Expert Reviews

    Honest and transparent reviews of sportsbooks, casinos and poker rooms crafted through industry expertise and in-depth analysis. Delve into intricacies, get the best bonus deals, and stay ahead with our trustworthy guides.