Amazon has been ruled responsible by US regulators for handling recalls of unsafe products sold on its platform.
The US Consumer Product Safety Commission (CPSC) stated that Amazon’s methods for alerting customers were insufficient in persuading them to stop using such products. As a result, the company has been ordered to develop a more effective plan.
The ruling came following a lawsuit by the CPSC in 2021, where Amazon was accused of distributing over 400,000 dangerous items, including faulty carbon monoxide detectors.
Despite Amazon’s intentions to appeal, the company has already ceased selling the identified products and notified customers.
Amazon expressed disappointment over the CPSC’s decision and plans to challenge it in court, defending its current practices.
According to Amazon, when a product recall happens, they remove the product from their site and notify their customers, advising them to stop using the items and offering refunds.
The CPSC countered that Amazon’s notifications lacked critical details like the term “recall” and other necessary information. They argued that Amazon’s measures were inadequate in encouraging consumers to return or dispose of the hazardous products, leaving significant risks for injury.
The debate centers on Amazon’s liability for products from third-party sellers. Amazon has long resisted claims of responsibility, arguing that it’s not a distributor but merely provides logistics services.
The majority of sales on Amazon’s platform are handled through the “Fulfilled by Amazon” program, which means Amazon manages the return process, communicates with customers, enforces pricing rules, and screens items.
The CPSC emphasized that Amazon’s involvement goes beyond that of a typical shipping company when businesses use the “Fulfilled by Amazon” service. For these sales, Amazon exerts considerable control over the sales and return process, qualifying it as more than just a logistics provider.
This decision adds to the ongoing debate regarding the responsibility of online platforms for the content and products they host.
In 2020, a California appeals court held Amazon liable for damages in a case involving a defective laptop battery. Following these developments, Amazon introduced a product guarantee program, covering refunds and processes to resolve personal injury disputes in 2021.
Amazon claims they prioritize the safety of items in their store and have measures like monitoring listings and preventing unsafe products. They insist their practices are designed to protect consumers, despite the regulators’ criticisms and the legal challenges that have arisen.
