Amazon files lawsuit against consumer regulator's ruling that it is liable for recalls of products sold by third parties on its marketplace, arguing that this is an over-interpretation of the law
In July 2021, the U.S. Consumer Product Safety Commission (CPSC) filed an administrative lawsuit against Amazon, alleging that 'Amazon has a legal responsibility to recall products that pose a risk of serious injury or death to consumers, even if the products are handled by third-party sellers.' In response, Amazon filed
Microsoft Word - 2025.03.14 1.50pm - Amazon v. CPSC Complaint.docx - amazon-v-cpsc.pdf
(PDF file) https://s3.documentcloud.org/documents/25590136/amazon-v-cpsc.pdf
Amazon is fighting the government's efforts to get it to recall hazardous products | The Verge
https://www.theverge.com/news/631435/amazon-cpsc-lawsuit-recall-third-party-products
Amazon defeats shareholder lawsuit over third-party sellers, capacity expansion | Reuters
The CPSC has filed an administrative lawsuit against Amazon in 2021, citing concerns that Amazon is selling products that need to be recalled, such as 24,000 defective carbon monoxide detectors that do not emit an alarm, children's nightwear that does not meet flammability standards and may cause burns to the wearer, and approximately 400,000 hair dryers that pose a risk of electric shock. In the lawsuit, the CPSC argues that Amazon is a 'seller' and that even if a product is handled by a third-party seller, it has a certain degree of responsibility and must take minimum measures such as encouraging customers to return or dispose of the product or conducting a recall.
Subsequently, in July 2024, the CPSC issued a corrective order to Amazon, stating that the company should bear certain responsibility for products sold by third-party sellers, including marketplaces, and that Amazon should be obligated to notify consumers about dangerous products.
US consumer authorities issue corrective order for Amazon not notifying users of recall information for 'hairdryers with risk of electric shock' - GIGAZINE
In response, Amazon has argued from the beginning that it is not a 'seller' and does not need to take measures to protect the public. On March 14, 2025, Amazon filed a lawsuit against the CPSC in court.
Amazon argues that 'Amazon is merely a logistics provider, and third-party products sold on the Marketplace are not manufactured, stored, or sold by Amazon,' that 'the CPSC does not have the authority to issue a corrective order to Amazon regarding the recall,' and that 'the CPSC's actions against Amazon are unconstitutional.'
'The law is clear that Amazon is a 'seller' in this case and must conduct recalls,' said William Wallace, director of safety advocacy at the nonprofit nonpartisan Consumer Reports. 'It's inappropriate to suggest that Amazon can neglect to recall products that are subject to recall because they are a logistics provider when the products are shipped through the marketplace by third-party sellers. If Amazon's argument prevails, it will lead to dangerous products that could injure or kill people but will not be properly recalled.'
In addition, Amazon opened a page in 2023 to provide buyers with recall and product safety warnings.
In addition, a class action lawsuit has been filed against Amazon, alleging that the company 'favored its own branded products over marketplace products' and 'concealed the excessive expansion of its infrastructure and fulfillment network, slowing growth and causing its stock price to fall sharply.' However, on March 17, 2025, Judge John Chung of the Federal District Court dismissed the lawsuit, saying, 'We have found no convincing concrete facts suggesting that Amazon concealed the fact that it favored its own branded products over third-party products.'
Related Posts:
in Note, Posted by log1r_ut