US product-safety agency sues Amazon

Bloomberg

Amazon.com Inc was sued by the US Consumer Product Safety Commission (CPSC ), which is seeking an order determining that the largest online retailer is legally responsible for defective products sold in its sprawling third-party marketplace.
The complaint filed says Amazon sold children’s sleepwear that failed to meet federal standards for flammability; some 24,000 carbon monoxide detectors that failed to activate when the harmful gas was present; and 400,000 hair dryers that risked shock and electrocution. Each of the products was sold by one of Amazon’s millions of third-party sellers, and all used a service called Fulfillment By Amazon, in which the company stores and distributes the products on behalf of its sellers.
After the CPSC notified Amazon of the defects, the Seattle-based company removed some of the product listings, notified customers that their goods presented a hazard, and offered a refund, but the actions were insufficient, the agency said in its complaint. Amazon “did not want to have this be called a recall, and they did not want to
be considered legally responsible for these products,” CPSC spokesperson Joe Martyak said.
“That’s the dealbreaker here. We think you are responsible for this.”
Amazon has faced a string
of product liability lawsuits around the US that seek to hold the company responsible for harm caused by items purchased on its marketplace.