US agency holds Amazon accountable for dangerous products sold by third-party vendors

Amazon has been deemed legally responsible for unsafe products sold on its platform by third-party vendors and shipped by the company, according to a ruling by the Consumer Product Safety Commission. The commission stated in a unanimous decision that Amazon is considered a “distributor” of defective products listed on its website and fulfilled through its logistics service. This ruling encompasses over 400,000 items, such as hairdryers and faulty carbon monoxide detectors, for which Amazon must initiate recalls and create a mechanism to notify customers who purchased these products, while also incentivizing their return or disposal.

The company holds a significant presence in the U.S. e-commerce market, accounting for about 40% of online sales, with a substantial portion being generated by its extensive network of third-party sellers. While Amazon has disputed the distributor designation since 2021, following a complaint from the Consumer Product Safety Commission alleging its role in the distribution of unsafe merchandise, the recent order reinforces its distributor status.

Amazon’s arguments rejecting the distributor classification under the Consumer Product Safety Act were dismissed by an administrative law judge, and the ensuing order by the commission serves as a validation of that decision. The commission highlighted Amazon’s failure to inform consumers about hazardous products and its inadequate efforts to facilitate their return or disposal, thereby placing customers at risk of harm.