01:50 PM EDT, 07/30/2024 (MT Newswires) -- (Adds Amazon's statement in sixth to eighth paragraphs and updates stock move in last paragraph.)

Amazon.com ( AMZN ) is responsible under US law for more than 400,000 hazardous products being offered on its platform by third parties and should pursue a recall of the sold items, the US Consumer Product Safety Commission said Tuesday.

The agency ordered Amazon ( AMZN ) to propose remediation plans to notify consumers about the products that are defective or fail to meet federal consumer product safety standards, incentivize the return or destruction of the items sold and remove them from its platform.

The hazardous products include faulty carbon monoxide detectors, hairdryers without electrocution protection and children's sleepwear that violated federal flammability standards, the agency said.

Amazon ( AMZN ), as the "distributor" of such products offered by third-party sellers, bears legal responsibility for their recall, the agency said.

The company was also accused of failing to notify consumers about the hazardous products and not taking adequate steps to encourage buyers to return or destroy the items.

Amazon ( AMZN ) expressed disappointment over the agency's move and said it plans to appeal the decision and present its case in court.

"When we were initially notified by the CPSC three years ago about potential safety issues with a small number of third-party products at the center of this lawsuit, we swiftly notified customers, instructed them to stop using the products, and refunded them," an Amazon ( AMZN ) spokesperson said in a statement to MT Newswires.

The spokesperson said the company has measures in place to prevent unsafe products on its platform and continuously monitors the listings. "If we discover an unsafe product available for sale, we address the issue immediately, and refine our processes," the spokesperson added.

Amazon ( AMZN ) shares fell 1.4% in recent trading Tuesday.

Price: 180.70, Change: -2.50, Percent Change: -1.37