Amazon has been held accountable for distributing hundreds of thousands of hazardous products sold by third parties on its platform, according to a ruling by the U.S. Consumer Product Safety Commission (CPSC). The federal agency determined that Amazon, by allowing the sale of these defective or non-compliant items, is responsible for recalling them.
Federal Ruling on Amazon’s Responsibility
On Tuesday, the CPSC issued a decision and order against Amazon, classifying the e-commerce giant as a “distributor” of products that either have defects or do not meet federal safety standards. This ruling makes Amazon legally obligated to recall over 400,000 products. The commission emphasized that Amazon, which reported a revenue of $574.8 billion in 2023, must take proactive measures to address the distribution of these hazardous items.
Hazardous Products Identified
The hazardous products include malfunctioning carbon monoxide detectors, hairdryers without electrocution protection, and children’s sleepwear that fails to meet federal flammability standards. These items, sold by third parties through Amazon’s Fulfilled by Amazon program, pose a “substantial product hazard” under the Consumer Product Safety Act, according to the CPSC. The agency noted that Amazon did not adequately inform the public about these dangers or take sufficient steps to ensure the return or destruction of the hazardous items.
The CPSC’s ruling follows an administrative complaint authorized by the commission three years ago, which alleged that Amazon distributed products posing significant risks. Despite not contesting the hazardous nature of the products, Amazon argued that it was not a distributor and therefore not liable for taking protective actions. The company claimed that notifying initial purchasers about potential safety issues and offering credits were adequate measures. However, the CPSC and an administrative law judge disagreed, finding Amazon’s efforts insufficient to protect the public.
Amazon’s Response and Required Actions
In light of the ruling, Amazon must now propose plans to inform customers about the hazardous products and remove them from circulation by incentivizing returns or destruction. The CPSC expects Amazon to implement effective strategies to mitigate the risks posed by these items. The agency’s decision underscores the need for stringent measures to ensure consumer safety in the e-commerce industry. Amazon has yet to respond to requests for comment regarding the CPSC’s ruling and the required recall actions.
In the meantime, the CPSC has posted four recalls in July alone for products sold exclusively on Amazon, including children’s pajamas considered a burn risk, a pool drain cover violating entrapment protection standards, twin strollers failing multiple safety regulations, and area rugs posing a fire hazard. The CPSC’s ruling against Amazon highlights the growing scrutiny and accountability for online retailers in ensuring the safety and compliance of products sold on their platforms. As the e-commerce giant moves forward, it must address these safety concerns comprehensively to maintain consumer trust and uphold federal safety standards.