Amazon and Third-Party Sellers of Defective Products

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September 23, 2020
Edward Smith

Amazon Could be Liable for Third-Party Defective Products

Last month, a California appeals court ruled that gargantuan online retailer Amazon can be held liable for defective products that were sold on its third-party “Marketplace.”  The ruling suggests that if you purchase a third-party product on Amazon and that product is defective, Amazon may be responsible for damages.  The finding by the California Fourth District Court of Appeals reverses a 2019 ruling by a lower trial court.  The appeals court ruling reinstated the claims from a plaintiff who alleged that she sustained third-degree burns after a defective laptop battery she purchased from an Amazon third-party seller caught fire.

For years Amazon has argued that it serves only as an intermediary between third-party sellers (aka the Amazon Marketplace) and their buyers.  This decision challenges that and could result in serious financial repercussions for Amazon. 

Watch the YouTube video featuring a report on this recent ruling.

The Amazon Marketplace

The “Amazon Marketplace” is not a separate and distinct place on the retailer’s website.  Instead, third-party sellers hawk their wares on listings that look just like regular Amazon listings save for a brief bit of text that indicates that the seller is not Amazon.  By using this method, Amazon has thus far protected itself from liability for products sold on its Marketplace.  That may no longer be the case with the appeals court ruling.  There are several other pending lawsuits related to defective products sold on Amazon by third-party sellers.

An Explosive Battery

The case looked at by the appeals court involved a plaintiff who allegedly purchased a laptop battery on Amazon from a company calling itself E-Life.  E-Life was a fictitious company name for Lenoge Technology Ltd.  E-Life shipped the battery to the plaintiff in packaging branded with the Amazon logo.  The plaintiff claimed that several months after receipt, the laptop battery exploded, causing her injuries.  

The appeals court stated in its ruling that Amazon was central to the sale of the defective laptop battery regardless of the term used for Amazon’s role – distributor, retailer, or facilitator – it was a pivotal player in getting the product to the consumer.  Therefore, the court ruled, Amazon should be held liable if a product that was sold on its website was defective.  

Inevitable Changes if the Ruling Stands

Amazon intends to appeal the decision.  If the decision stands, it is not hard to envision that the way in which Amazon has conducted business for years will change.  

Vallejo Products Liability Lawyer

Hello, and thank you for reading.  I’m Ed Smith, a Vallejo products liability lawyer.  The subset of law known as products liability relates to harm caused by consumer products.  We expect the items we buy in the store to be safe to use, and in most cases, they are.  However, every year people suffer serious injuries and are even killed by defective and dangerous products sold in the American marketplace.  If you or a loved one has suffered harm as a result of your using a defective consumer product, give my firm a call at (707) 564-1900 for free and friendly advice.  We also have a toll free number: (800) 404-5400.

I am proud to be a member of the Million Dollar Advocates, an association of trial lawyers who have obtained settlements or jury verdicts of at least one million dollars.

My website, autoaccident.com, hosts a wealth of information related to personal injury matters.  I invite you to take a look.

I have proudly served those injured in accidents and by the use of dangerous products throughout Vallejo, and all of Northern California, for nearly 40 years.  

Many of my prior clients have graciously written reviews of my services on Avvo, Google, and Yelp.  Some of my successful case results can be viewed here: Verdicts & Settlements.

Photo Attribution: https://unsplash.com/photos/xEc4lKv6x7o

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