Amazon to pay up to $1,000 in damages for hazardous items sold on its site

Amazon Steps Up to Cover Up to $1,000 in Damages for Hazardous Items

In an effort to improve customer satisfaction and shield sellers from questionable claims, Amazon announced on Tuesday that the company will handlecustomer complaints directly and hold resellers accountable when they fail to address valid concerns or reimburse customers as required. Effective September 1, all products sold on Amazon's platform will undergo changes.

The new procedure involves customers contacting Amazon's customer service, who will then inform the seller of the issue. If the seller does not respond, Amazon will promptly resolve the problem on its own cost and pursue individual action against the seller. If the seller refuses the request, Amazon might intervene to help resolve the issue and reimburse the seller up to $1,000 at no cost.

Amazon touted this improved process as a time, money, and effort saver for customers and sellers, as part of its A-to-Z Guarantee, which replaces the current direct communication system where customers must contact sellers directly to resolve problems.

In recent years, numerous products sold on Amazon, such as defective hoverboards, malfunctioning carbon monoxide detectors, and faulty dog leashes, have generated dissatisfaction among consumers. This has led to a lawsuit against Amazon, questioning whether the company should be held responsible for damages resulting from third-party-sold items.

Amazon clarified that it functions as a marketplace for other sellers, as opposed to being a seller itself. In its terms and conditions, it states: "If you buy products or services from these companies or individuals, you buy directly from them, not from Amazon." "Amazon assumes no responsibility for the behavior of these third parties, nor for any products or content offered by them."

By shouldering some of the responsibility, Amazon seeks to satisfy disgruntled customers and safeguard sellers from unwarranted claims.

Additional Insights

Amazon's policy for compensating customers affected by hazardous items sold on its platform is governed by several steps, as mandated by the U.S. Consumer Product Safety Commission (CPSC). Here are the main components of the new policy and the types of items that have caused issues in the past:

1. Recall Initiation and Notification:
   • Amazon is required to initiate recalls for hazardous products sold through its platform, even if they are sold by third-party sellers through the “Fulfilled by Amazon” program.[1][4]
   • The CPSC has ordered Amazon to inform customers about the potential hazards of these products and to email affected customers, post recall notices in their order history, and incentivize them to destroy or dispose of the product.[1][4]
2. Product Types:
   • The hazardous items include:
     • Children’s Pajamas: These failed to comply with federal flammability standards.[1][4]
     • Hair Dryers: These did not provide electrocution protection in water.[1][4]
     • Carbon Monoxide Detectors: These were faulty and did not function correctly.[1][4]
   • More than 400,000 of these items were sold between 2018 and 2021.[1][4]
3. Regulatory Compliance:
   • Amazon is now classified as a distributor under the Consumer Product Safety Act, making it legally liable for recalling dangerous products and warning customers about potential hazards.[4]
   • The CPSC emphasizes that these products present a significant threat to consumer safety due to their defects and failure to meet federal safety standards.[1]
4. Ongoing Monitoring and Reporting:
   • Amazon must maintain recall notices online for at least five years and submit monthly progress reports to the CPSC.[4]
   • This ensures ongoing monitoring of compliance with safety regulations.

This new policy aims to hold Amazon accountable for ensuring the safety of products sold on its platform, even when those products are offered by third-party sellers.

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