The US Consumer Product Safety Commission has ruled that Amazon is ultimately responsible for defective third-party products sold via its platform.

Amazon’s role in handling recalls and defective products has been a bit of a gray area, given that many of the products sold via its online platform are sold by third parties. The Commission received a complaint in 2021, alleging that Amazon was distributing products that posed a “substantial product hazard” under the Consumer Product Safety Act (CPSA).

During the CPSC’s investigation, Amazon did not deny the risk posed by the products, but argued to an Administrative Law Judge (ALJ) that it was technically not a distributor, as defined by the CPSA, since the products were sold by third parties. Therefore, the company argued that it was not responsible for any recalls or mitigation efforts.

The CPSC ruled against the company, saying the company did qualify as a distributor.

The ALJ rejected Amazon’s argument, holding that Amazon acted as a distributor in this matter. The Commission affirmed that holding in today’s decision.

Amazon also claimed that sending messages to initial purchasers about “potential” safety issues and providing initial purchasers with Amazon.com credits – rather than refunds incentivizing product return or destruction – were sufficient to remedy the product hazards. The Commission, as well as the ALJ, disagreed, finding Amazon’s actions inadequate to protect the public.

Amazon must now develop and submit proposed plans to notify purchasers and the public about the product hazards, and to provide refunds or replacements for these products. Notice to the public is important so that people who may have received one of the products as a gift or purchased it second-hand can learn about the hazards. The Commission will consider these plans and then issue a second order on notification and remedies.

This puts Amazon on the same playing field as Walmart, Target, and other US retailers who must serve notice and facilitate recalls of defective products as a part of their role in distributing them.