July 30 (Reuters) - Amazon.com ( AMZN ) is responsible
for hazardous products sold by third-party sellers on its
platform under the federal safety law and bears legal
responsibility for their recall, the U.S. consumer protection
authority said on Tuesday.
The Consumer Product Safety Commission (CPSC) said it has
issued an order for the e-commerce giant to propose remediation
plans to notify consumers about these products and to remove
them from consumers' homes by encouraging returns or
destruction.
Amazon ( AMZN ) did not immediately respond to a Reuters request for
comment.
More than 400,000 products are subject to this order, the
CPSC said, noting in particular faulty carbon monoxide
detectors, hairdryers without electrocution protection, and
children's sleepwear that violated flammability standards.
The CPSC has determined that Amazon ( AMZN ) was a "distributor" of
such defective products as they are listed on its website, even
though they are sold by third-party sellers under the "Fulfilled
by Amazon ( AMZN )" program.
"Amazon ( AMZN ) failed to notify the public about these hazardous
products and did not take adequate steps to encourage its
customers to return or destroy them, thereby leaving consumers
at substantial risk of injury," the agency said.
The CPSC in July 2021 sued Amazon ( AMZN ), forcing the company to
recall hundreds of thousands of hazardous products sold on its
platform. At the time, Amazon ( AMZN ) said it had removed "the vast
majority" of those products from its store and provided full
refunds to customers.
The CPSC on Tuesday said Amazon ( AMZN ) argued before an
administrative law judge that it was not acting as a distributor
of the products within the meaning of the Consumer Product
Safety Act, and therefore bore no responsibility for the items.
The "Fulfilled by Amazon ( AMZN )" program allows third-party sellers
to list their products on Amazon ( AMZN ), which are stored, packed and
dispatched by Amazon ( AMZN ) on order.
Late last year, the CPSC warned consumers to stop using toy
magnets from Chinese seller Doraemon, which were being sold on
Amazon.com ( AMZN ), following seven deaths from ingestion.