Economic Rules Hub
  • World
  • Politics
  • Business
  • Investing
Home Business Amazon is responsible for dangerous products sold on its site, federal agency rules
Business

Amazon is responsible for dangerous products sold on its site, federal agency rules

by admin August 1, 2024
August 1, 2024

Amazon must notify customers about and remove products deemed dangerous that it sells through its website, federal regulators ruled Tuesday.

In a unanimous decision, the Consumer Product Safety Commission said that as a ‘distributor,’ Amazon ultimately bears legal responsibility for affected products’ recalls, even if they are sold in the first instance by third-party sellers using the Fulfilled by Amazon (FBA) program.

‘Amazon failed to notify the public about these hazardous products and did not take adequate steps to encourage its customers to return or destroy them, thereby leaving consumers at substantial risk of injury,’ the commission said.

More than 400,000 products sold on Amazon.com, including faulty carbon monoxide alarms and potentially flammable children’s pajamas and hair dryers, are subject to the order, though Amazon has already removed and notified customers about many of them.  

“We are disappointed by the CPSC’s decision,’ an Amazon spokesperson told NBC News, saying the company will appeal the commission’s decision.

‘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 spokesperson said.

Amazon must now develop and submit proposals about how it will notify purchasers and the broader public about future product hazards, and to provide refunds or replacements for the products, the CPSC said. 

The Amazon spokesperson said there are ‘proactive measures in place to prevent unsafe products,’ adding that the company continuously monitors listings in its store.

‘If we discover an unsafe product available for sale, we address the issue immediately, and refine our processes.”

The agency had sued Amazon in July 2021, forcing the company to recall hundreds of thousands of hazardous products sold on its platform via the FBA program, which accounts for approximately 60% of all sales on its platform.

In response, Amazon said it had removed a “vast majority” of such products from its store and refunded customers even as it maintained that it only provides logistics services to independent merchants and is not a distributor.

The CPSC disagreed with that argument.

“Amazon cannot sidestep its obligations under the [Consumer Product Safety Act] simply because some portion of its extensive services involve logistics,” its decision states. “Amazon must therefore comply with the CPSA to protect consumers from injury.”

Separately, the U.S. Food and Drug Administration said it had last week issued a warning letter to Amazon over its distribution of potent chemical peel drug products that violated the Federal Food, Drug, and Cosmetic Act.

This post appeared first on NBC NEWS

0
FacebookTwitterPinterestEmail
previous post
Stellantis to offer broad buyouts to U.S. salaried workers, warns of possible layoffs
next post
FPX Nickel Engages ICP Securities for Automated Market Making Services

Related Posts

Why Trump’s iPhone tariff threat might not be enough to...

May 25, 2025

FTC drops Biden-era suit accusing Pepsi of price discrimination

May 24, 2025

United Airlines reaches ‘industry-leading’ labor deal with flight attendants, union...

May 24, 2025

Trump clears Nippon merger with U.S. Steel

May 24, 2025

How UnitedHealthcare became the face of America’s health insurance frustrations

May 23, 2025

Burger King targets families through movie partnerships in latest stage...

May 23, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • King Charles to make ‘impactful’ trip to Canada as Trump pushes 51st state claim

      May 27, 2025
    • No, Trump. ‘Crazy’ Putin hasn’t changed. The question is, have you?

      May 27, 2025
    • Brazilian leader Lula released from hospital after suffering vertigo

      May 27, 2025
    • Hong Kong’s baby pandas finally get names. Meet Jia Jia and De De

      May 27, 2025
    • Germany and other allies lift restrictions on Ukraine firing long-range missiles after Russia’s record aerial assault

      May 27, 2025

    Categories

    • Business (1,372)
    • Investing (3,314)
    • Politics (4,452)
    • World (4,365)
    • Email Whitelisting
    • Terms and Conditions
    • Privacy Policy
    • Contacts
    • About us

    Disclaimer: EconomicRulesHub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 EconomicRulesHub.com | All Rights Reserved

    Economic Rules Hub
    • World
    • Politics
    • Business
    • Investing