The agency’s complaint marks a forceful entry by the federal government into the debate over whether Amazon can be legally held responsible for defective products sold on its website.
Courts have been divided on the issue for years. Just last month, the Texas state supreme court found that Amazon could not be held liable under state law for injuries to a toddler who swallowed a remote-control battery.
But earlier this year, judges in California said that, contrary to Amazon’s assertion that it "merely provided an online storefront" for the retailer, it was "undisputed" that the company placed itself squarely in the middle of the sale.
"We are persuaded that Amazon’s own business practices make it a direct link in the vertical chain of distribution under California’s strict liability doctrine," the judges ruled.
The CPSC’s Adler said he voted to file the complaint, though he did so with "great reluctance," in part because the statute guiding the CPSC’s oversight isn’t clear on the issue of third-party retailers.
"That means that for every product for which CPSC determines a recall is necessary, a lengthy negotiation must first take place about the threshold question of whether that sales platform is even subject to our laws," Adler said in his statement. "If they resist, that leaves the agency without a full partner in recall activities, since many of the suppliers to these platforms are not domestic companies or companies with the financial ability to conduct recalls."
Adler called for third-party platforms like Amazon to work with the CPSC to develop a framework on how to handle products deemed unsafe.
"Clearly the current approach is not sustainable," he said in the statement. "To continue product‐by‐product is like using an eyedropper to empty the ocean—ineffective, inefficient, and frustratingly insufficient to protect consumers."
Wallace of Consumer Reports said it’s clear the complaint came "only after drawn-out negotiations with Amazon, and there could have been much faster action if the company were cooperative. We’re also concerned that this step—while critical—may cover only a small portion of the potentially hazardous products that Amazon has manufactured, distributed, or sold."
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July 15, 2021 at 07:05AM
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Regulator Seeks Massive Recall of Products Sold on Amazon - ConsumerReports.org
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