The US government has ruled that Amazon is responsible for managing recalls of unsafe products sold on its platform and must improve its recall process. Regulators said Amazon's alerts to customers about recalled products were not effective enough in convincing them to stop using the hazardous items. The US Consumer Product Safety Commission (CPSC) ordered Amazon to submit a new plan for how it will handle product recalls going forward.
This decision came after the CPSC sued Amazon in 2021 for distributing more than 400,000 dangerous products, including faulty carbon monoxide detectors. Amazon said it plans to appeal the ruling, while defending its current product safety practices.
When a product is recalled, Amazon says it removes the item from its site and notifies customers. However, the CPSC found that Amazon's recall messages lacked key information, such as the term "recall", which limited their effectiveness. The commission determined that Amazon did not do enough to encourage customers to return or destroy the unsafe products, leaving consumers at significant risk of injury.
Amazon has long disputed its liability for products sold by third-party merchants on its platform. The company argued it was acting only as a logistics provider, not the actual distributor. But the CPSC ruled that Amazon's role goes beyond that of a typical shipping company when products are part of its "Fulfilled by Amazon" program, which handles the majority of sales. In those cases, Amazon controls the returns process, communicates with customers, sets pricing, and screens items.
This decision adds to the ongoing debate about the responsibility of online platforms for content and products sold on their sites. A 2020 court ruling found Amazon could be held liable for damages from a defective product sold through its marketplace. In response, Amazon introduced a new product guarantee program in 2021 that includes refunds and a process for resolving personal injury claims.
Reference: Natalie S. (30 Jul, 2024) U.S. Regulators Hold Amazon Responsible for Product Recalls
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