In a recent decision by a US federal appeals court, Amazon has been deemed liable for third-party products sold through its platform.
This ruling means that the tech giant can be subject to legal actions from consumers who purchase items from third-party vendors on its website.
While Amazon primarily offers its own products, it generated approximately $11 billion in revenue in the first quarter of the year from services provided to third-party sellers. It’s worth noting that nearly half of the items available on Amazon are sourced from these third-party sellers.
Liability for products sold by third parties falls under state regulations, with this specific ruling being based on the laws in Philadelphia. The decision stemmed from a case where a Philadelphia resident, Heather Oberdorf, sued Amazon in 2016 due to a faulty retractable dog leash that resulted in her losing vision in one eye. The court found Amazon partly accountable because it allows third-party vendors to operate somewhat anonymously, which can hinder customers’ ability to seek accountability from the actual seller of the defective product.
