Amazon Battles Government Over Responsibility for Third-Party Product Safety

Amazon has filed a lawsuit against the US Consumer Product Safety Commission (CPSC) over an order requiring the company to recall hazardous third-party products sold on its platform.

The lawsuit, filed on March 14 in the US District Court for the District of Maryland, argues that the CPSC is exceeding its authority by treating Amazon as a distributor rather than a logistics provider.

In July 2024, the CPSC ruled that Amazon was responsible for recalling over 400,000 defective products, including faulty carbon monoxide detectors, hairdryers lacking electrocution protection, and children's sleepwear that violated flammability regulations, CBS News said.

The order followed a 2021 administrative complaint in which the agency accused Amazon of distributing unsafe goods.

The commission claims that as a distributor, Amazon must ensure consumer safety by executing recalls.

Amazon Claims It's Not Liable for Hazardous Third-Party Sales

Amazon does not dispute that the products in question are hazardous but insists it is not legally responsible for third-party sales.

The company argues that the law applies only to manufacturers, distributors, and retailers—not to logistics providers that merely store and ship goods.

"The commission may issue recall orders to manufacturers, distributors, and retailers, but not to third-party logistics providers," Amazon stated in its lawsuit.

Additionally, Amazon challenges the CPSC's legal framework, asserting that it allows the agency to act as "judge, jury, and prosecutor in the same proceeding." The company contends that this structure is unconstitutional.

According to TheVerge, while Amazon has not commented directly on the lawsuit, a company spokesperson noted that the company had already informed customers about the affected products and issued refunds. Amazon also launched a recall page in 2023 to help notify buyers of unsafe products.

The CPSC has not yet responded to Amazon's legal action. However, consumer advocacy groups have criticized the company's stance.

William Wallace, director of safety advocacy at Consumer Reports, stated, "It's absurd to suggest that because a company hosts a marketplace online, it should be exempt from sensible requirements that help get hazardous products out of people's homes."

He also warned that Amazon's lawsuit could weaken the CPSC's ability to protect consumers from dangerous goods.

Originally published on vcpost.com