When Can Amazon Be Held Liable For Third-Party Defective Products?
Online marketplaces, like Amazon, have transformed how Americans shop. The site offers unparalleled convenience at the click of a button. This convenience, however, comes with a question: Who is responsible when a product sold online turns out to be dangerous or defective? For several years, Amazon has maintained that it is merely a marketplace and not a seller. The company, therefore, should be shielded from legal liability created by third-party sellers. Recent legal developments, however, suggest otherwise.
Is Amazon a marketplace or a seller?
Amazon is host to millions of third-party vendors through its Marketplace program. While Amazon handles the listing, the payment processing, and in many cases, the storage and shipping of products, the company has long argued that the legal responsibility for defective products lies with the third-party vendor. This position has frustrated injured consumers, particularly when vendors are based overseas or vanish after the sale. This leaves victims with no realistic way to recover damages from defective or dangerous products.
Courts are pushing back against Amazon and its defense strategy in product liability cases. In several notable cases, judges recognized that Amazon often acts more like a traditional retailer than a neutral platform (like a flea market). By storing, packaging, and shipping goods while collecting significant fees from sellers, Amazon exerts enough control over the transaction to be considered a “seller” under U.S. product liability law.
Why this matters for consumers
These implications are significant. If Amazon is held liable, injured consumers could gain access to a financially viable defendant with the resources to cover their damages. Without this accountability, many victims would be left uncompensated, particularly when third-party vendors are judgment-proof or located outside of the U.S.
For example, if a defective household item, like a space heater prone to catching fire, injures a loved one or causes property damage, you should be able to recover damages from the vendor. If purchased through Amazon, and if the vendor cannot be located or is insolvent, the family could be left without any recourse unless Amazon is legally recognized as a seller.
Legal theories
The majority of product liability claims don’t require proof of negligence. Instead, product liability claims rely on strict liability, which holds sellers accountable for defective products that are entered into the stream of commerce, regardless of intent or fault. By extending strict liability to Amazon in some cases, courts ensure that someone in the chain of distribution bears responsibility for unsafe products.
Florida law, like many states, recognizes that liability can extend across the distribution chain. As Amazon continues to blur the line between marketplace and seller, more courts are finding that the company should be held liable for its products.
Talk to a Florida Product Liability Lawyer Today
Halpern, Santos & Pinkert represent the interests of Florida residents in product liability lawsuits. Call our Florida personal injury lawyers today to schedule an appointment and learn more about how we can help.
