Amazon is liable for defective third-party products, Californian court rules.

 

Amazon is liable for defective third-party products, Californian court rules

A Californian Court of Appeal has ruled Amazon is responsible for defective products sold through its Marketplace, even if they are being sold by a third party. This decision has significant implications for Amazon, which had previously managed to avoid liability by claiming it is merely a service provider. 

"Whatever term we use to describe Amazon’s role, be it 'retailer,' 'distributor,' or merely 'facilitator,' it was pivotal in bringing the product here to the consumer," Justice Patricia Guerrero said in her ruling. "Under established principles of strict liability, Amazon should be held liable if a product sold through its website turns out to be defective."

Strict liability is a legal standard that holds people responsible for injury caused by their actions, even if there was no fault or malicious intent involved. 

The court's finding overturns a San Diego Superior Court decision from last year. The case concerned San Diego woman Angela Bolger, who used Amazon to buy a replacement laptop battery from an Amazon seller listed as "E-Life" — a pseudonym for Lenoge Technology (HK) Ltd. Several months after Bolger received the battery it exploded, inflicting her with severe burns.

Bolger sued Amazon, which successfully argued that it couldn't be held accountable because it only provides an online marketplace service, and didn't manufacture, distribute, or sell the battery to her. 

However, the Court of Appeal has found that while the battery was not Amazon-branded, the company's involvement went beyond that of a mere online marketplace such as eBay, as Amazon handled payment and shipping as well as stored the battery in one of its warehouses. 

"Amazon accepted possession of the product from Lenoge, stored it in an Amazon warehouse, attracted Bolger to the Amazon website, provided her with a product listing for Lenoge’s product, received her payment for the product, and shipped the product in Amazon packaging to her," said Guerrero. "Amazon set the terms of its relationship with Lenoge, controlled the conditions of Lenoge’s offer for sale on Amazon, limited Lenoge’s access to Amazon’s customer information, forced Lenoge to communicate with customers through Amazon, and demanded indemnification as well as substantial fees on each purchase."

"Amazon is a direct link in the chain of distribution, acting as a powerful intermediary between the third-party seller and the consumer," Guerrero continued. "Bolger’s claims are based on Amazon’s role in the chain of production and distribution of an allegedly defective product."

The decision follows a previous ruling by the Philadelphia Court of Appeal last year, which also found Amazon could be held liable for defects in third-party products. Such findings open Amazon up to a myriad of complaints from customers seeking redress for defective third-party products — lawsuits Amazon no doubt would rather avoid.

Mashable has reached out to Amazon for comment.

Mashable

Comments

  1. If they sell thru Amazon then amazon should have to back it or do their job and research who they allow sell thru the Amazon site.
    The fact is that Amazon makes billions of dollars off the customers and it should be up to them to reimburse and then they can go after the 3rd party seller. They were the ones who allowed them as a seller so they can bear the brunt of waiting for reimbursement and making sure the customer is taken care of.

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  3. This will drive down third party sellers being shown to CA consumers. Less choice for customers. Well intentioned judgment tht will have not so good unintended consequences

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    Replies
    1. Getting rid of 3rd party sellers who sell faulty crap that you cannot return is a good thing for customers

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    2. If the choice is made up of faulty crap, don't see an issue with having fewer third party sellers.

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  4. I buy third party products in hopes that if amazon is selling the product, it must be good

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  5. Well they steal the good ideas so they should pay for the crapy ones

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  6. When Amazon keeps letting 3rd parties sell on their marketplace and doesn't take responsibility for the 3rd partys standards for their products it leads to a very inconsistent experience and a ton of frustration.

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  7. Where's my package I been waiting for the past month that was supposed to have been a 3 day delivery?

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  8. Ridiculous! Stop making trouble for Amazon. What would we do without it in these times?

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  9. They can't just rake in rhe billions without accepting responsibility as well

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  10. You can always return anything defective. Don T be foolish. We need them right now

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  11. All that Chinese product that gets bought through Amazon now has a return policy. This may weed out the crap and the crappy sellers.

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  12. Not only defective products. They delivered brick and stones instead of product. I am stop shopping on amazon.

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  13. They should be liable for anything they sell

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  14. They will appeal it.

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  15. That's really good..they are selling some shirts product with fake reviews

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  16. How about be liable for paying some tax?

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  17. lmao watch amazon pull out of cali unless they rethink that ruling

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    1. Lol it’s still too late, people are hip to the idea now, they will have to comply or lose customers and money.

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  18. Look at those reviews on Amazon will scare people not only the products but the service quality.

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  20. Terrible move by the courts. This means less choice, higher prices, and intended negative consequences for struggling small businesses. Amazon needs to fight this overreach.

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  21. I had to rewrite a Kohls review because I told them if they were going to send me sketchy UGGS from overseas I could have ordered from Amazon lol. #IWasKarenThatDay

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  22. Can I get my $1.79 back for that pen?

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    1. I want it back!

      https://media1.tenor.co/images/734001bfc6513fa0589f93c6963180d7/tenor.gif?itemid=5118213

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