Amazon is Liable for Defective Products, California Court Rules
Amazon.com can be held liable for injuries due to defective products sold on its marketplace, a California state appeals court ruled on Thursday.
The court said that, like other retailers, Amazon would face liabilities for harm due to its defective products-not just the reseller, USA Today reported.
As said in a Reuters report, the decision reversed a San Diego Superior Court ruling that said Amazon could be shielded from liability. The previous ruling said this is because Amazon just acted as a service provider of the defective products.
Service providers are not subject to California product liability law.
On top of selling its own products, Amazon also lets third-party sellers to post products for sale on its site. The vendors can then store their goods in an Amazon warehouse and ship them directly to the people who buy it.
The ruling, written by Judge Patricia Guerrero of the Fourth District Court of Appeals, was unanimously made.
It stated that "Amazon should be held liable if a product sold through its website turns out to be defective," Business Insider said in its report.
The ruling is a major blow to Amazon, which has fought off lawsuits for years. For years, they have been dodging suits that ask for liability over injury or damage to property.
Amazon had not yet responded to a request for comment on the matter.
What Started the Liability Case?
Talks on Amazon's liability started when a woman, Angela Bolger, suffered from third-degree burns because of a laptop battery. She bought it from a third-party seller, Lenoge Technology HK Ltd., on Amazon marketplace, CNBC reported.
"Consumers across the nation will feel the impact of this," said the attorney for Bolger, Jeremy Robinson.
In Bolger's lawsuit, she alleged that the battery exploded moths after her purchase. She said she suffered burns in her arms, legs, and feet due to this.
Bolger argued that Amazon should be held responsible for the burns.
But Amazon said that they were not liable for the defective product because it did not distribute, manufacture, or sell the product. They said Lenoge was the seller of the faulty battery, not them.
"More than half the units sold in our stores are from independent sellers," the company said on its website.
What was Amazon's Role in the Injury?
The court did not agree with Amazon, saying that they played such a big role. They had to be held liable for the injuries, the court said.
Guerrero wrote that Amazon "placed itself between Lenoge and Bolger."
As the court said, Amazon was involved in getting the product distributed. The company accepted the product, stored it in their warehouse, made efforts to get the buyer came to the site, and gave her a product listing.
The ruling also said that the company received Bolger's payment and shipped the product in their packaging, adding to their role in the faulty goods.
As Amazon also limits sellers' access to customer information, they are forced to talk to buyers through the site.
Amazon also asked for fees on each purchase, the court said.
The marketplace accounts for about 60% of Amazon's sales. It does bring good sales to the company, but it has also been host to unsafe, fake, or defective products.
Despite this, the company has said before that it invests millions of dollars per year to make sure products sold in their marketplace is safe and compliant.
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