Amazon is responsible for defective products sold by third-party sellers through its Marketplace, a California appeals court ruled this week. The decision, led by Justice Patricia Guerrero, overturned a previous San Diego Superior Court verdict that let Amazon off the hook because it acts as a service provider, which is not covered by the state's product liability law, according to Reuters.
Owned and operated by Amazon, Marketplace allows third-party vendors to sell new or used products to the tech company's massive customer base. Goods may be stored in Amazon warehouses, and shipping and customer service handled directly by the e-commerce firm. The platform came under fire, however, when Angela Bolger sued Amazon for negligence after buying a replacement laptop battery, which allegedly exploded and burned Bolger, from Lenoge Technology (HK) Ltd. (operating under the pseudonym "E-Life") .
Because it did not technically distribute, manufacture, or sell the product in question, Amazon was able to convince the trial court that it was not at fault. Upon appeal, Bolger argued that the company is "strictly liable" for defective products offered on its website by third-party sellers.
"In the circumstances of this case, we agree," Guerrero wrote in her ruling, backed by Associate Justices Patricia Benke and Terry O'Rourke. "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."
"Consumers across the nation will feel the impact of this," Jeremy Robinson, an attorney for Bolger, told CNBC. Amazon did not immediately respond to PCMag's request for comment.
As Reuters points out, Amazon has faced numerous lawsuits aimed at holding it responsible for damage or injuries caused by defective third-party products. And while most courts agree it's not a "seller" under various state product liability laws, a few rulings have allowed Amazon to be sued. Currently, top courts in Pennsylvania and Ohio are considering the issue, while federal appeals courts are deciding similar cases under California and Texas law.
Further Reading
- Report: Amazon Wants to Turn Closed Department Stores Into Fulfillment Centers
- Oops, Decimal Point Error Causes Etsy to Massively Overcharge for Shipping Labels
- Amazon Finally Confirms Prime Day Is Delayed
- Instagram, Google Launch Interactive Online Shopping Portals
- More in Shopping