CPSC Determines Amazon is Liable for Defects in the Products it Distributes

The U.S. Consumer Product Safety Commission (CPSC) has determined that Amazon is responsible under federal safety law for hazardous products sold by third-party sellers on its platform. This decision, following an administrative law judge’s ruling, mandates Amazon to develop plans to notify purchasers and the public about these dangerous items, including faulty carbon monoxide detectors, hairdryers without electrocution protection, and flammable children’s sleepwear. Amazon must also implement remedies to ensure the removal or destruction of these products, as their initial actions were deemed insufficient.

For more information, you can visit the full press release here.

About the decision

According to the CPSC, Amazon can be liable for the defects in products it distributes. This is huge in the products world. Here is the big picture. Case law for about 100 years from across the United States in the product liability field has held that distributors of products are liable for defects in those products. The rationale from the beginning was that the distributor is in a better position than the consumer to know about and to take action regarding defects. (The manufacturer, of course, is liable for the defects as well).

In this internet age, platforms like Amazon have contended that they are merely a platform, a conduit, a neutral third party. Of course, that is what distributors of products argued 100 years ago. The only difference is that Amazon and other sites sometimes do not even take physical possession of the product. (Of course, as we all know from seeing the Amazon trucks and Amazon warehouses, Amazon does take possession of some and maybe even a sizable percentage of the products it sells on its site). The other difference is that Amazon and others sell such an enormous volume of products.

But these are distinctions without a difference. The same rationale applies to the liability of Amazon as to the liability of any other distributor of products.

A ruling like this of a Federal agency does not bind any state court and does not bind a Federal Court in any individual consumer action against Amazon. But any state or Federal Court would and should find this extremely persuasive. Any legislation which prevents this liability of the distributors including Amazon would be against the interests of consumers and in favor of mega-corporations. The only reason such legislation would be proposed is the powerful lobby money of the likes of Amazon. We should not let this happen.

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John H. (Jack) Hickey is recognized by The Best Lawyers in America in three areas: Personal Injury Litigation – Plaintiffs, and Medical Malpractice – Plaintiffs, and Admiralty and Maritime Law. Hickey is Board Certified by the National Board of Trial Advocacy in Civil Trial law, and is double Board Certified by the Florida Bar in Civil Trial and Admiralty and Maritime Law.

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