Amazon has a platform called Amazon Marketplace, where third-party sellers can sell their products on their EC sites. However, the Federal Circuit Court of Appeals ruled against Amazon that customers who purchased defective products from a third-party seller through the Amazon.com name could sue Amazon.com. In other words, Amazon is also responsible for products handled by third-party sellers.
In trials focused on whether Amazon is liable for products handled by third-party sellers, two rulings have been made so far that Amazon is not required to be liable for products handled by third-party sellers. However, in a recent trial, contrary to the past, Amazon has ruled that it is responsible for the products handled by third-party sellers.
Amazon Marketplace is a platform that allows third-party sellers to store products in Amazon warehouses and sell products directly to customers. According to the first quarter settlement report, revenue from the Amazon Marketplace was $11 billion. According to statistics firm Statista, about half of the products sold on Amazon come from the marketplace. In this trial, Amazon’s responsibility for products sold by other companies on the marketplace has emerged as a problem.
The person who filed the lawsuit complained in the Pennsylvania Federal Court in 2016 that a third-party dog collar purchased from Amazon Marketplace was broken and his face was injured. He bought a necklace from a third party (Furry Gang) on the marketplace, but was reportedly protesting against Amazon because he couldn’t find a vendor.
In response to the ruling, the lawsuit’s attorneys said they are pleased that the court agreed to their arguments and made them aware that the existing interpretation of the product liability law in Pennsylvania did not respond to reality. Related information can be found here .