The California court rules Amazon CAN can be held liable for defective third-party goods


Angela Bolger suffered severe fires after a replacement laptop battery exploded in 2016

Angela Bolger suffered severe fires after a replacement laptop battery exploded in 2016

An appeals court in California has given Amazon a major blow, finding that the online retail giant could be held liable for defective goods sold by third-party sellers through its marketplace.

A three-judge panel of the 4th District Court of Appeal on Thursday overturned a lower court ruling that Amazon was not liable for an exploding battery that injured a San Diego woman.

Angela Bolger brought the lawsuit, saying the battery she bought from Amazon brand seller Lenoge Technology (HK) Ltd, also called E-Life, gave her third-degree burns when it exploded in 2016.

The appellate court found that Amazon controlled important aspects of the transaction, including marketing the product, billing Bolger and sending it to its packaging with Amazon brand.

A spokesman for Amazon blew the decision in a statement to DailyMail.com: ‘The court’s decision was wrongly made and is in violation of well-established law in California and the country that service providers are not liable for third-party products that they do not make or sell. ‘

A truck passes an Amazon warehouse on Staten Island in a stock photo.  An appeals court in California has found that the online retail giant can be held liable for defective goods sold by third-party vendors through its marketplace

A truck passes an Amazon warehouse on Staten Island in a stock photo. An appeals court in California has found that the online retail giant can be held liable for defective goods sold by third-party vendors through its marketplace

“We will appeal this decision,” the Amazon spokesman added.

The case, which could have huge consequences for Amazon, stems from Bolger’s purchase of a $ 12.30 replacement laptop battery on the site, which exploded several months later.

Bolger was left with severe burns, and had to be hospitalized for two weeks, according to court documents.

They filed a lawsuit against Amazon in January 2017. Three months later, tech giant Bolger sent an email saying they had learned that the Lenoge replacement battery they had ordered could present a fire hazard if not expect[.]’

The email advised them to stop using the product immediately and remove it at a battery recycling center, informing them that Amazon had provided a credit of the purchase price to their Amazon account.

Bolger, a clinical research partner with the Navy, also added Lenoge and several Chinese companies to her suit, but none appeared in court, and some were impossible to serve.

Amazon CEO Jeff Bezos can be seen in a file photo.  The ruling comes as a major blow to the online retail giant, which is demanding on third-party sellers for more than half of its sales

Amazon CEO Jeff Bezos can be seen in a file photo. The ruling comes as a major blow to the online retail giant, which is demanding on third-party sellers for more than half of its sales

The advisory court ruled: ‘But for Amazon’s own actions, Bolger would not have been injured. Amazon’s own actions, and its control over the product in the basket form the basis of its liability. ‘

‘Nothing but Amazon’s own choice required Lenoge to offer his product for sale, store Lenoge’s product in his warehouse, accept Bolger’s order or send the product to her. It made these choices for its own commercial purposes. It must share in the consequences, ‘reads the opinion.

The ruling comes as a major blow to the online retail giant, which charges third-party sellers for more than half of its sales, per unit.

About 40 percent of the goods sold on Amazon are items that Amazon itself selects, buys from distributors and sells directly to the public. The rest are sold by third-party sellers, with Amazon taking a cut from the selling price.

The advisory court found that Amazon acted as an intermediary between a downstream supplier and the final consumer, and thus had strict liability for defective products.

‘The supplier has no direct relationship with the buyer, and in fact in most cases does not even have an indirect relationship with the buyer,’ found the advice of third-party suppliers using Amazon’s marketplace.

One of Bolger’s lawyers, Jeremy Robinson, told the Times of San Diego: ‘It is impossible to overstate the scope of this statement. Consumers across the nation will feel the impact of this. ‘

Amazon has previously dealt with several lawsuits seeking to hold it liable for damages or injuries caused by defective products sold by third parties, including products based abroad.

However, most courts have concluded that Amazon is not a ‘seller’ under product liability laws across several states if they are third-party transactions.

Both Pennsylvania and Ohio’s top courts are currently considering the issue, and federal appeals courts are pending cases under California and Texas law.

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