Amazon is suing the US Consumer Product Safety Commission (CPSC) over the agency’s order requiring the e-commerce giant to recall hazardous products sold to consumers on Amazon.com.
In the complaint filed in Maryland last week, Amazon argues that it was a logistics provider of the hazardous products in question and, therefore, isn’t responsible for the recall. “The Commission may issue recall orders to the manufacturers, distributors, and retailers of a product, but not to third-party logistics providers who store the product in their warehouses and transport it to customers,” Amazon says.
The case dates back to 2021. The CPSC sued Amazon for selling over 400,000 units of products that posed a substantial hazard under the Consumer Product Safety Act (CPSA). The products were sold between 2019 and 2021 and included faulty carbon monoxide (CO) detectors, hair dryers without electrocution protection, and children’s sleepwear violating federal flammability standards.
Amazon later notified customers about the faulty products and blocked their sales. However, the CPSC took issue with two matters. One, the agency felt that Amazon “downplayed the severity of the hazard by stating only that the product “may” cause harm.” Two, the agency found that Amazon didn’t provide a way to return the products or issue a full refund; instead, it only issued gift cards for Amazon credit.
Last year, Amazon argued before an administrative law Judge that “it was not a distributor and bore no responsibility for the safety of the products sold under its Fulfilled by Amazon program.” The judge, however, rejected Amazon’s argument, determined it is a “distributor,” and ordered the company to “develop and submit proposed plans to notify purchasers and the public about the product hazards, and to provide refunds or replacements for these products.”
As mentioned, Amazon now says it’s only a logistics provider in this case since it does not manufacture, own, or sell the products sold via its Fulfilled by Amazon program. Additionally, Amazon argues that since CPSA grants the CPSC authority to issue recall orders only to manufacturers, distributors, or retailers, the agency cannot issue recall orders to the e-commerce giant.
“The Commission brought an administrative lawsuit only against Amazon to expand its authority over online marketplaces,” Amazon claims.
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While Amazon continues to deny its legal responsibility in the case, consumer safety advocates argue otherwise.
“Instead of demonstrating its commitment to consumer safety, Amazon has fought the CPSC every step of the way for more than three years,” said William Wallace, director of safety advocacy for Consumer Reports. “It’s absurd to suggest that because a company hosts a marketplace online it should be exempt from sensible requirements that help get hazardous products out of people’s homes and prevent them from being sold.”
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About Jibin Joseph
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