Amazon Held Accountable for Product Recalls by US Regulators
US regulators have declared that Amazon must take responsibility for managing recalls of unsafe products sold on its platform and needs to enhance its recall procedures.
The US Consumer Product Safety Commission (CPSC) ruled that Amazon’s current alert system is inadequate to effectively persuade customers to stop using hazardous products. Consequently, Amazon has been ordered to submit a revised plan outlining how it will handle recalls. This decision follows a 2021 lawsuit where the CPSC accused Amazon of distributing over 400,000 dangerous items, including defective carbon monoxide detectors.
Amazon has announced plans to appeal the ruling while defending its existing practices. According to the company, it already removes unsafe products from its site and notifies affected customers in the event of a recall.
“We are disappointed by the CPSC’s decision and plan to appeal it. We look forward to presenting our case in court,” Amazon stated. The company emphasized that it had ceased sales of the unsafe products mentioned in the complaint—such as faulty carbon monoxide detectors, hairdryers lacking electrocution protection, and children’s pajamas that did not meet flammability standards. Amazon also claimed to have informed customers, instructed them to stop using the items, and provided refunds.
However, the CPSC criticized Amazon’s communication, stating that the company’s messages did not use terms like “recall” or provide sufficient information. The commission asserted 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 argued that it is not liable for products sold by third-party businesses on its platform. In this case, Amazon contended it was acting merely as a logistics provider and not as a “distributor” under the law. The CPSC, however, maintained that Amazon’s role exceeds that of a typical shipping company, particularly when merchants use its “Fulfilled by Amazon” service, which manages the majority of sales on the site. This service involves Amazon in the return process, customer communication, enforcement of pricing rules, and screening items for eligibility.
The commission noted that its decision was specific to the facts of this case but suggested that other companies might consider applying the analysis to their own products and practices.
This ruling adds to the ongoing debate over the responsibility online platforms have for the content and products available on their sites. In a notable case from 2020, a California appeals court determined that Amazon could be held liable for damages caused by a defective laptop battery sold on its platform. In response, Amazon introduced a product guarantee in 2021, which includes refunds and a process for resolving personal injury disputes.
“We stand behind the safety of every product in our store,” Amazon reiterated on Tuesday, highlighting the measures it has in place to prevent unsafe products and monitor listings.
