Amazon is responsible for handling the recall of defective or dangerous products that were sold by other businesses on its website, a U.S. product safety regulator said Tuesday, marking the latest move by the government to hold the e-commerce giant accoutable.
In a unanimous vote, the Consumer Product Safety Commission ruled that Amazon was a "distributor" of more than 400,000 products that were defective or failed to meet federal safety standards. The ruling means Amazon is legally responsible for the recalls of these products, including providing means to return or replace the purchases.
The products in question are faulty carbon monoxide detectors, hairdryers without electrocution protection and children’s pajamas violating federal flammability rules. They sold on Amazon.com and were part of the company's Fulfilled by Amazon program, in which outside businesses partner up to deliver their goods and offer two-day shipping.
In court, Amazon argued it wasn't a distributor of the products and bore no responsibility for their safety through its shipping partnership with outside businesses. The CPSC decided otherwise.
Amazon responds
Amazon will appeal the decision, a spokesperson told ConsumerAffairs, adding the company already alerts shoppers about dangerous goods.
“In the event of a product recall in our store, we remove impacted products promptly after receiving actionable information from recalling agencies," the spokesperson said. "Our recalls alerts service also ensures our customers are notified of important product safety information fast, and the recalls process is effective and efficient.
“We stand behind the safety of every product in our store through our A-to-z Guarantee, regardless of whether it is sold by Amazon or by one of our selling partners. We have proactive measures in place to prevent unsafe products, and we continuously monitor the listings in our store. If we discover an unsafe product available for sale, we address the issue immediately, and refine our processes,” the spokesperson added.
In 2021, the CPSC sued Amazon to force the recall of the hazardous products sold on its website, including 24,000 faulty carbon monoxide detectors that failed to alarm.
"When we were initially notified by the CPSC three years ago about potential safety issues with a small number of third-party products at the center of this lawsuit, we swiftly notified customers, instructed them to stop using the products, and refunded them," the Amazon spokesperson said.
The lawsuit led to the CPSC's ruling, which consumer advocacy groups applauded as a step forward for product safety.
'Necessary step'
“The only way to ensure the safety of consumers from dangerous or defective products is to hold every party involved responsible, from manufacturers to distributors and retailers," said Michelle Barry, president of nonprofit Safe Infant Sleep, in a statement. "This decision represents a significant and necessary step towards achieving that goal, reinforcing the principle that public safety must come before profit."
The CPSC said Amazon must now provide plans on how it will notify the public about the hazardous products and how shoppers can get refunds or replacements.
"The Commission will consider these plans and then issue a second order on notification and remedies," the CPSC said.