Amazon Ordered to Develop Remediation Plans to Notify
Purchasers and the Public and to Implement Remedies to
Remove Products from Consumers' Homes
WASHINGTON, July 30,
2024 /PRNewswire/ -- The U.S. Consumer Product Safety
Commission (CPSC) today issued a Decision and
Order against Amazon.com, Inc., a global e-commerce
company with $575 billion in revenue.
In a unanimous vote, the Commission determined that Amazon was a
"distributor" of products that are defective or fail to meet
federal consumer product safety standards, and therefore bears
legal responsibility for their recall. More than 400,000 products
are subject to this order: specifically, faulty carbon monoxide
(CO) detectors, hairdryers without electrocution protection, and
children's sleepwear that violated federal flammability
standards.
![The U.S. Consumer Product Safety Commission is an independent federal agency created by Congress in 1973 and charged with protecting the American public from unreasonable risks of serious injury or death from more than 15,000 types of consumer products under the agency's jurisdiction. To report a dangerous product or a product-related injury, call the CPSC hotline at 1-800-638-2772, or visit http://www.saferproducts.gov. Further recall information is available at http://www.cpsc.gov. (PRNewsfoto/U.S. Consumer Product Safety Commission) The U.S. Consumer Product Safety Commission is an independent federal agency created by Congress in 1973 and charged with protecting the American public from unreasonable risks of serious injury or death from more than 15,000 types of consumer products under the agency's jurisdiction. To report a dangerous product or a product-related injury, call the CPSC hotline at 1-800-638-2772, or visit http://www.saferproducts.gov. Further recall information is available at http://www.cpsc.gov. (PRNewsfoto/U.S. Consumer Product Safety Commission)](https://mma.prnewswire.com/media/514352/US_CPSC_v1_Logo.jpg)
The Commission determined that these products, listed on
Amazon.com and sold by third-party sellers using the Fulfilled by
Amazon program, pose a "substantial product hazard" under the
Consumer Product Safety Act (CPSA). Further, Amazon 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. Amazon argued before an Administrative Law Judge
(ALJ) and the Commission that it was not a distributor and bore no
responsibility for the safety of the products sold under its
Fulfilled by Amazon program.
Under the Commission's Decision and Order, Amazon must submit
proposed plans to notify consumers and the public about the
hazardous products, and to remove the products from commerce by
incentivizing their return or destruction. The Commission will
consider Amazon's proposed plans and address them in a second order
in this case.
Overview
On July 14, 2021, the Commission
authorized an administrative complaint against Amazon alleging
that the company distributed certain products that pose a
substantial product hazard. The matter was initially tried before
an ALJ who ruled that Amazon was a "distributor," that the products
present a substantial product hazard, and that Amazon must take
certain steps, including issuing recalls, to protect the public
from the hazardous products. Both parties appealed the ALJ's ruling
to the Commission, which considered the record in the case and
heard oral argument, resulting in this Decision and
Order.
Under the CPSA, after the Commission hears evidence from the
parties and determines that a product presents a substantial
product hazard, it may require a manufacturer, distributor, or
retailer of the product to warn consumers about the product risks
and provide remedies to remove the products from consumers' homes
and the marketplace.
When third-party sellers sell hazardous products through the
platform or services of a distributor, the Commission may hold the
distributor responsible for providing these remedies to consumers.
In this case, third-party sellers listed the hazardous products
for sale on Amazon.com as part of the Fulfilled by Amazon program.
In addition to allowing third-party sellers to list products on the
Amazon.com website, this program provides an array of services to
its participating sellers.
During the administrative law proceedings before the ALJ and the
Commission, Amazon did not contest that the products present a
substantial product hazard. Instead, Amazon argued that it was not
acting as a distributor of the hazardous products within the
meaning of the CPSA, and therefore was not responsible for taking
actions to protect the public. The ALJ rejected Amazon's
argument, holding that Amazon acted as a distributor in this
matter. The Commission affirmed that holding in today's
decision.
Amazon also claimed that sending messages to initial purchasers
about "potential" safety issues and providing initial purchasers
with Amazon.com credits – rather than refunds incentivizing product
return or destruction – were sufficient to remedy the product
hazards. The Commission, as well as the ALJ, disagreed, finding
Amazon's actions inadequate to protect the public.
Amazon must now develop and submit proposed plans to notify
purchasers and the public about the product hazards, and to provide
refunds or replacements for these products. Notice to the
public is important so that people who may have received one of the
products as a gift or purchased it second-hand can learn about the
hazards. The Commission will consider these plans and then issue a
second order on notification and remedies.
Background Information
- CPSC Sues Amazon to Force Recall of Hazardous Products Sold on
Amazon.com | CPSC.gov
- Recall Lawsuits: Adjudicative Proceedings |
CPSC.gov (In the Matter of Amazon.com. CPSC Docket
21-2)
Media Contacts:
Pamela
Springs
|
PSprings@cpsc.gov; 301-504-7425
|
Nychelle
Fleming
|
Nfleming@cpsc.gov;
301-504-7063
|
About the U.S. CPSC
The United States Consumer Product Safety Commission (CPSC) is an
independent federal agency charged with protecting the public from
unreasonable risk of injury or death associated with the use of
thousands of types of consumer products. Deaths, injuries, and
property damage from consumer product-related incidents cost the
nation more than $1 trillion
annually. CPSC's work to ensure the safety of consumer products has
contributed to a decline in the rate of injuries associated with
consumer products over the past 50 years.
Federal law prohibits any person from selling products subject
to a Commission ordered recall or a voluntary recall undertaken in
consultation with the CPSC.
Release Number: 24-321
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SOURCE U.S. Consumer Product Safety Commission