Amazon is liable for defective third-party products, California court rules


A California court has ruled that Amazon is responsible for defective products sold through its Marketplace, even if they are sold by a third party. This decision has significant implications for Amazon, which has previously been able to avoid liability by claiming that it is only a service provider.

“Whatever term we use to describe the role of Amazon, whether it was ‘retailer’, ‘distributor’, if only ‘facilitator’, it was very important in bringing the product here to the consumer,” Justice said. Patricia Guerrero in her statement. “Under established principles of strict liability, Amazon should be held liable if a product sold through its website is found to be defective.”

Strict liability is a legal norm that holds people liable for injury caused by their actions, even if no guilt or malicious intent was involved.

The court’s ruling reverses a decision by San Diego’s Superior Court last year. The case involved San Diego wife Angela Bolger, who used Amazon to buy a replacement laptop battery from an Amazon retailer called “E-Life” – a nickname for Lenoge Technology (HK) Ltd. Several months after Bolger received the battery, it exploded, causing her severe burns.

Bolger approached Amazon, which successfully argued that it could not be held responsible because it only provided an online marketing service, and the battery was not manufactured, distributed or sold to them.

However, the court found that although the battery was not an Amazon brand, the company’s involvement went beyond that of a regular online marketplace such as eBay, as Amazon handled the payment and shipping and stored the battery in one of its warehouses. .

“Amazon accepted possession of Lenoge’s product, stored it in an Amazon warehouse, pulled Bolger to the Amazon website, provided her with a product list for Lenoge’s product, received her payment for the product, and shipped the product in Amazon packaging to her. , “said Guerrero. “Amazon set the terms of its relationship with Lenoge, controlled the terms of Lenoge’s offer for sale on Amazon, restricted Lenoge’s access to Amazon’s customer information, forced Lenoge to communicate with customers through Amazon, and claimed damages as substantial fees on every purchase. “

“Amazon is a direct link in the chain of distribution, and acts as a powerful intermediary between the third-party seller and the consumer,” Guerrero continued. “Bolger’s claims are based on Amazon’s role in the chain of production and distribution of any defective product.”

The decision follows an earlier ruling by the Philadelphia Court of Appeal last year, which also found Amazon could be held liable for defects in third-party products. Such findings open Amazon up to a whole host of complaints from customers seeking redemption for defective third-party products – lawsuits Amazon would undoubtedly prefer.

Mashable reached out to Amazon for comment.