The U.S. Consumer Product Safety Commission (CPSC) has issued a landmark Decision and Order requiring Amazon.com to take significant steps to address hazardous products sold through its platform. The unanimous ruling, marks the conclusion of a lengthy administrative litigation process against the e-commerce giant.
The Order stems from a July 2024 determination that Amazon acted as a “distributor” for certain defective products sold by third-party sellers through its Fulfilled by Amazon program. These items, including faulty carbon monoxide detectors, hair dryers lacking electrocution protection, and children’s sleepwear violating federal flammability standards, were deemed to pose a “substantial product hazard” under the Consumer Product Safety Act.
Key requirements of the Order include:
- Public Notification: Amazon must post recall releases on its website and directly notify original purchasers via email and through their “Your Orders” pages on the day CPSC publishes the recalls.
- Refund Incentives: To encourage removal of hazardous products from circulation, Amazon is required to offer full refunds to consumers who provide proof of product destruction or disposal.
- Extended Record-Keeping: The company must maintain recall information on its website for at least five years and submit monthly progress reports to the CPSC for the same duration.
- Seller Notification: Amazon is obligated to inform Fulfilled by Amazon participants who sold the affected products about the recalls.
This Order, set to take effect on January 26, 2025, impacts over 400,000 products and represents a significant shift in how the CPSC approaches product safety in the e-commerce era. It underscores the Commission’s stance that online platforms can be held responsible for the safety of products sold through their services, even when items come from third-party sellers.
CPSC Chair Alexander Hoehn-Saric and Commissioners Peter A. Feldman, Douglas Dziak, and Richard Trumka have issued statements regarding the decision, emphasizing its importance for consumer safety in the digital marketplace.
The case against Amazon began in July 2021 when the CPSC filed an administrative complaint, alleging the company’s responsibility for distributing hazardous products. After an initial ruling by an Administrative Law Judge, both parties appealed to the Commission, leading to the July 2024 decision and today’s final Order.
This ruling sets a precedent for how large online marketplaces may be held accountable for product safety in the future, potentially reshaping the landscape of e-commerce regulation and consumer protection.