Eight months after being designated as a distributor and held liable for recalls of hazardous products sold through its platform, Amazon is fighting back with a lawsuit against the Consumer Product Safety Commission (CPSC).
In July 2024, the CPSC ruled that Amazon is a distributor, and therefore is legally responsible for the recall of products sold on the platform that are defective or fail to meet certain safety standards. In January, the CPSC issued a final ruling stating the steps Amazon must take to comply with that recall.
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In its March 14 complaint for declaratory and injunctive relief, Amazon argued that the commission overstepped its statutory authority and extended the scope of the Consumer Product Safety Act (CPSA) by ordering Amazon to conduct a broad recall of products manufactured, owned and sold by third parties.
Amazon’s complaint states that the CPSA allows the commission to order recalls only for manufacturers, distributors or retailers, and explicitly excludes third-party logistics providers. The CPSA specifies third-party logistics providers “shall not…be deemed to be a manufacturer, distributor or retailer of a consumer product solely by reason of receiving or transporting a consumer product in the ordinary course of its business.”
The CPSA defines a third-party provider as a “person who solely receives, holds or otherwise transports a consumer product in the ordinary course of business but who does not take title to the product.”
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Amazon contends that it should not be classified as a manufacturer or distributor because it operates its Fulfillment by Amazon (FBA) service, which stores and ships products for third-party sellers who retain ownership of the products. Because Amazon neither owns nor sells the products, it argues that it should not be considered a distributor or seller under product liability law and subsequently should not be subject to the commission’s recall order.
To learn more about the complaint filed in the District of Maryland, click here.
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