Amazon To Be Liable For Third-Party Products

Photo Credit: CNET

A US federal appeals court has ruled that Amazon should be liable for third-party products.

The massive retailer will now be exposed to lawsuits from customers who buy products from third-party sellers on their website.

The news of Amazon’s liability for third-party products sold on their site comes after several other courts ruling in Amazon’s favor. Two other federal appeals courts maintained that Amazon cannot be held liable for defective products sold by other parties. This most recent ruling against Amazon comes from the 3rd US Circuit Court of Appeals in Philadelphia, reversing the previous trend of absolving Amazon of liability for products from third-party sellers.

While Amazon sells much of its own inventory, the company made approximately $11 billion in revenue from services provided to third-party sellers during the 1st quarter. According to data firm Statista, about half of the products sold on Amazon are from third-party sellers. Liability for products from third-party sellers is usually governed by state law, and this most recent ruling was based on the state laws of Philadelphia. Philadelphia resident Heather Oberdorf sued Amazon back in 2016 over a defective retractable dog leash which snapped and recoiled, hitting her in the face and leaving her blind in one eye. The ruling against Amazon was based on the fact that the company is partially liable because it “enables third-party vendors to conceal themselves from the customer, leaving customers injured by defective products with no direct recourse to the third-party vendor.”

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5 years ago