Tech & Innovation - March 17, 2025

Amazon Challenges CPSC Over Responsibility for Third-Part...

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Amazon, the ecommerce behemoth, has recently filed a lawsuit against the US Consumer Product Safety Commission (CPSC), contesting the agency's claim that Amazon is responsible for recalling all dangerous products on its marketplace, including those sold by third parties. This legal action follows a lawsuit by the CPSC against Amazon in 2021, alleging that the company did not adequately recall tens of thousands of hazardous items. Despite Amazon's removal of the products and notifications to buyers, the CPSC argues that the company downplayed the severity of the hazards. Amazon, however, categorizes itself as a third-party logistics provider, asserting it does not manufacture, own, or sell the products in question, thus challenging the CPSC's authority to issue recall orders.

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The CPSC's Standpoint

The CPSC maintains that Amazon is a distributor and therefore must carry out recalls of third-party goods. This was reaffirmed by an administrative law judge's decision. The agency's lawsuit against Amazon in 2021 alleged that the company failed to properly recall hazardous items, thereby putting consumer safety at risk.

Amazon's Defense

Amazon argues that it is a logistics provider, not a distributor. The company claims it does not manufacture, own, or sell the products sold by third parties on its platform. Amazon also asserts that the CPSC's structure is unconstitutional, as it allows commissioners to act as judge, jury, and prosecutor in the same proceeding. In response to the recall issue, Amazon launched a product recall page on its site in 2023.

Industry Reactions

The lawsuit has sparked reactions from industry experts. William Wallace, the director of safety advocacy for Consumer Reports, responded to the lawsuit by stating that the law clearly identifies Amazon as a distributor in this case and it must carry out a recall. He further criticized Amazon's argument, calling it absurd to suggest that a company hosting an online marketplace should be exempt from requirements that help get hazardous products out of people's homes and prevent them from being sold.

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. - William Wallace, Director of Safety Advocacy, Consumer Reports