Amazon, the globally recognized online retail behemoth, finds itself under scrutiny as the Court of Appeals in California, in a landmark decision on August 13, 2020, determined that the company could be held accountable for injuries and damages resulting from defective products available on its platform. This ruling marks a significant legal development, shifting the responsibility paradigm for e-commerce giants.
The decision implies that Amazon, often viewed as a marketplace intermediary rather than a direct seller, may now bear legal consequences for the quality and safety of products listed by third-party vendors on its platform. The court’s decision underscores the evolving nature of liability in the digital marketplace, setting a precedent that could potentially reshape the legal landscape for online retailers globally. As consumers increasingly turn to online platforms for their shopping needs, this case prompts a reassessment of the responsibilities and obligations of e-commerce giants in ensuring the safety and integrity of the products offered through their platforms.
The California Court of Appeals’ Fourth Appellate District settled this after revising the case of Angela Bolger, a woman who suffered burns to her legs and arms when the battery of her laptop, which she bought through vendors on Amazon, exploded while she was using it.
It should be noted that the California Court of Appeals’ decision has opened the door for Amazon to face legal charges in other states for product liability claims purchased on their platform. Currently, Pennsylvania and Ohio are analyzing the matter, while the Federal Courts of Appeals review cases under the product liability laws of California and Texas. So, you can sue Amazon for defective products?
Sue Amazon for Defective Products: The Leading Case
Angela Bolger bought a battery for her laptop from the seller Lenoge Technology HK Ltd on Amazon. The battery exploded months later while Bolger was using the computer on her lap, causing third-degree burns on her arms, legs, and feet.
After the incident, Bolger demanded Lenoge and Amazon be held liable for her injuries. She also decided to sue Amazon for defective product. However, the San Diego court ruled that the e-commerce giant was not liable for the incident. This is because Amazon only acted as a service provider, and the defective items were sold by a third-party vendor.
Unhappy with the decision, Bolger brought the case to the Court of Appeals, where it was determined that Amazon could not protect itself from liability under Section 230 of the Communications Decency Act.
According to the said section, online platforms cannot be considered responsible for the content posted by users.
The Court said that the Act couldn’t be applied in this case. The liability depends on the “own activities of Amazon, not of its condition as speaker or editor of the content given by Lenoge for its list of products.”
It is worth mentioning that Lenoge Technology, the battery seller, is part of the “Amazon Fulfilled” program, in which suppliers ship their products to Amazon stored warehouses. This means Amazon is in charge of shipping the products to the buyer.
In this program, Amazon takes charge of the packing process for shipping. When clients initiate product returns, they send the items back to the e-commerce company instead of directly to the third-party sellers. To engage in this Fulfillment by Amazon (FBA) service, suppliers are required to pay additional fees. This operational model streamlines the return process, centralizing it within Amazon’s logistics infrastructure.
By having customers return products to Amazon directly, the company can efficiently manage the reverse logistics and ensure a standardized and convenient experience for both buyers and sellers. However, the convenience of FBA comes at a cost, with suppliers incurring additional fees to leverage Amazon’s comprehensive fulfillment services, which extend beyond traditional shipping to encompass storage, packing, and handling of returned items.
“Amazon set the terms of its relationship with Lenoge, controlled the conditions of Lenoge’s offer for sale on Amazon, limited Lenoge’s access to Amazon’s customer information, forced Lenoge to communicate with customers through Amazon, and demanded compensation as well as substantial fees on each purchase,” the Court of Appeals claimed.
According to the judge, the term we use to describe Amazon does not matter, whether it be “retailer”’ or “distributor” as Amazon was pivotal in bringing the product from the seller to the consumer.
Lenoge, operating under the alias “E-Life” on Amazon, faced legal action from Bolger, yet the company failed to appear during the trial proceedings. Consequently, a default judgment was issued against Lenoge by a district court of the first instance. This legal development marked the first instance where Amazon found itself confronting charges of liability.
Interestingly, this legal episode unfolded amid ongoing discussions among California lawmakers regarding potential legislation that could subject Amazon and other e-commerce operators to stringent liability laws. The ruling from the Court of Appeals’ Fourth Appellate District coincided with these legislative deliberations, adding a layer of significance to the case.
The court’s decision may influence the ongoing legislative discourse, potentially shaping the legal landscape for e-commerce platforms, including the responsibilities and liabilities they bear for products sold on their platforms. As the intersection of law and e-commerce continues to evolve, this case and the concurrent legislative discussions highlight the complex considerations surrounding the legal frameworks governing online marketplaces like Amazon.
Amazon’s A-to-Z Guarantee
In an effort to better its customers’ experience, Amazon expanded its A-to-Z Guarantee to cover property damage and injuries.
For the majority of its website transactions, Amazon functions as a liaison for a third-party seller. This means that Amazon acts as the facilitator between seller and customer. Thanks to the expansion of the A-to-Z Guarantee, Amazon now also facilitates between seller and customer in cases of defective product injuries.
In the event that a customer acquires a faulty third-party product, recourse is available through the A-to-Z claim process. This mechanism allows customers to file claims concerning issues with their purchases. If Amazon deems the claim valid, the company takes a direct role in the resolution process. Particularly, if the damages amount to less than $1,000, Amazon assumes the responsibility of compensating the customer directly.
This customer-centric approach reflects Amazon’s commitment to ensuring a seamless and trustworthy shopping experience, providing a safety net for buyers who encounter problems with products acquired through the platform. The A-to-Z claim process not only serves as a dispute resolution mechanism but also underscores Amazon’s dedication to maintaining a high standard of customer satisfaction and protection in its expansive online marketplace.
According to Amazon, a defective product claims process usually takes about 90 days to be resolved. Although the A-to-Z guarantee is meant to help a customer recover damages for their defective product, Amazon will not pay the customer for non-economic damages.
How to Sue Amazon for a Defective Product
To sue Amazon for defective products may be difficult. Because Amazon and other online marketplace sites do not purchase consumer products from third-party sellers, this can confuse who the “seller” is in these situations.
While Amazon does indeed offer its own range of products, a notable aspect of its business model involves providing a platform for independent sellers who leverage Amazon’s services for the facilitation of shipping, packaging, and labeling of their products. By assuming these logistical responsibilities, Amazon essentially becomes a direct intermediary between buyers and the diverse array of consumer products available on its platform. This intertwining of Amazon’s infrastructure with the operations of independent sellers establishes a direct connection that extends beyond merely being a marketplace.
Consequently, the lines between Amazon as a platform provider and a participant in the transactional process blur, raising questions about the extent of the company’s accountability and involvement in ensuring the quality, safety, and overall reliability of the products offered by third-party vendors. As the digital marketplace continues to evolve, this dynamic relationship between Amazon and independent sellers brings forth complex considerations regarding the responsibilities and liabilities of the e-commerce giant in fostering a secure and satisfactory shopping experience for consumers.
While attributing a product liability lawsuit directly to Amazon may pose challenges, the inherent difficulty does not justify allowing the company to evade accountability for selling potentially hazardous products to American consumers. It is crucial to uphold standards of consumer safety and product quality, irrespective of the complexities involved in assigning liability. The protection of consumers should be a paramount concern, necessitating a careful examination of Amazon’s role in ensuring the safety and reliability of the products available on its platform.
Striking a balance between the convenience of online marketplaces and the protection of consumer rights is essential, prompting a thorough evaluation of regulations and practices that govern e-commerce entities like Amazon. Advocating for a robust framework that holds platforms accountable for the products they facilitate can contribute to a safer and more responsible marketplace for consumers.
When to Contact a Personal Injury Lawyer
So, can you sue Amazon for defective products? If you or a loved one have suffered a personal injury caused by a faulty product, our product liability lawyers can help you through the claims process.
At Farahi Law Firm, our product liability attorneys have years of experience winning our clients the maximum compensation possible for their injuries and damages. Not only do we help our clients win compensation, but we also ensure that our clients get proper legal advice and the right medical attention they need without having to worry about medical expenses.
We are available 24/7 to answer your questions. Call us at (844) 824-2955 for a free evaluation of your case, or email us at info@farahilaw.com. We speak English and Spanish.
