Biden administration rules Amazon liable for recalled, hazardous products sold online

The U.S. Consumer Product Safety Commission (CPSC) ruled on Tuesday that Amazon bears legal responsibility for the recall of more than 400,000 hazardous products sold on its website by third-party sellers that were packaged and shipped by the company.

In a unanimous vote, the CPSC deemed Amazon a “distributor” of the defective products sold through its “Fulfilled by Amazon” program, making the e-commerce giant legally responsible for the safety of the products. The commission also determined the products present a “substantial product hazard.”

Amazon did not deny the safety hazards of the products, but the company argued it was not the products' "distributor" and, therefore, should not be liable for the products' safety.

The Administrative Law Judge (ALJ) previously rejected that argument, and the commission's order on Tuesday reaffirms that decision.

The commission also determined on Tuesday that Amazon failed to notify the public about the safety issues 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 ordered Amazon to submit plans to notify the public of the hazardous products and provide incentives to customers to return or destroy them.

Amazon said it sent messages to initial buyers of the products notifying them about the “potential” safety issues and providing them with Amazon.com credits. Still, the agency officials said these steps were not sufficient to remedy the product hazards and adequately protect the public.

The government officials noted that the credits were offered in place of “refunds incentivizing product return or destruction.”

The Tuesday order applies to more than 400,000 products that have been recalled. They include hairdryers without proper electrocution protection, faulty carbon monoxide detectors, and children’s pajamas that violate federal flammability standards, according to the U.S. government agency’s press release.

A spokesperson for Amazon says they were "disappointed" by the decision, planned to appeal and looked forward to presenting their case in court.

“We stand behind the safety of every product in our store through our A-to-z Guarantee, regardless of whether it is sold by Amazon or by one of our selling partners," the spokesperson said. "We have proactive measures in place to prevent unsafe products, and we continuously monitor the listings in our store. If we discover an unsafe product available for sale, we address the issue immediately, and refine our processes.”