Amazon responsible for product recalls, says US

Amazon, a major online retailer, has recently come under scrutiny from US regulators regarding its responsibility for handling product recalls. The US Consumer Product Safety Commission (CPSC) has determined that Amazon must take more effective measures to manage recalls of unsafe products sold on its platform. The commission found that Amazon's notifications to customers about these unsafe items were inadequate, failing to sufficiently alert them to stop using the products. As a result, the CPSC has ordered Amazon to develop a new plan to improve its recall processes. This ruling follows a lawsuit filed against Amazon in 2021, which accused the company of distributing over 400,000 hazardous products, including defective carbon monoxide detectors. In response to the ruling, Amazon has stated its intention to appeal the decision, asserting that it has been following proper procedures. Currently, when a product is recalled, Amazon removes it from its website and informs customers. The company expressed its disappointment with the CPSC's decision, stating, 'We are disappointed by the CPSC’s decision. We plan to appeal the decision and look forward to presenting our case in court. ' Amazon also noted that it had ceased selling the unsafe products mentioned in the complaint, which included faulty carbon monoxide detectors, hairdryers lacking electrocution protection, and children's pajamas that did not meet safety standards for flammability. The company claimed to have notified customers, advised them to stop using the items, and issued refunds. However, the CPSC criticized Amazon for not using the term 'recall' in its communications and for failing to provide adequate information to customers. The commission stated that Amazon 'did not take adequate steps to encourage its customers to return or destroy them, thereby leaving consumers at substantial risk of injury. ' Amazon has consistently pushed back against claims of liability for products sold by third-party sellers on its platform. In this case, Amazon argued that it should not be held responsible as a 'distributor' under the law, claiming it merely acted as a logistics provider. However, the CPSC countered that Amazon's role extends beyond that of a typical shipping company, particularly when merchants utilize its 'Fulfilled by Amazon' service, which handles a significant portion of sales on the platform. According to the commission's findings, Amazon manages the return process, communicates with customers, enforces pricing rules, and screens products for eligibility. The CPSC emphasized that its decision was based on the specific facts of this case, while also suggesting that other companies consider how this analysis might apply to their own products and practices. This ruling adds to the ongoing debate about the responsibilities of online platforms for the products sold on their sites. In a notable case in 2020, a California appeals court determined that Amazon could be held liable for damages related to a defective laptop battery sold on its platform. Following that, Amazon introduced a new product guarantee in 2021, which includes refunds and a process for addressing personal injury claims. In a statement, Amazon reaffirmed its commitment to product safety, saying, 'We stand behind the safety of every product in our store,' and highlighted its efforts to prevent unsafe products from being listed.