A government order could mean that Amazon is responsible for the safety of goods that it sells for outside vendors through its website, reports The Wall Street Journal.
The U.S. Consumer Product Safety Commission is reportedly considering classifying the company as a distributor, giving the online retail giant the same responsibilities as traditional retailers. In practice, this would mean Amazon could face lawsuits and extensive recalls over items sold through its platform.
Amazon has been able to combat the distributor designation because most of its sales (60 percent) are by outside vendors, known as third-party sellers. The remainder of sales are attributed to its own inventory, just like traditional retail. The company has also stated that, as a platform to connect buyers and sellers, it isn’t responsible for ensuring product safety from outside vendors.
The online retail marketplace has also noted that it does invest in product safety across the site; for example, it takes measures to prevent suspicious or non-compliant products from being listed and monitors products for safety concerns.
“Safety is important to Amazon, and we want customers to shop with confidence in our store,” said an Amazon spokesperson.
For the order to advance, a majority of the government agency’s four commissioners would have to vote in favor of the ruling. Full Story (Subscription Required)
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