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For
years, consumers have sued the world's largest online retailer,
arguing it is liable when a merchant sells bad products on
Amazon.com. A woman in Pennsylvania, for instance, in 2016
sought to blame Amazon for a merchant's retractable dog leash
that blinded her eye when it snapped.
Amazon maintains that sellers themselves are responsible, and
most courts have ruled in its favor
https://www.reuters.com/
legal/litigation/amazon-not-liable-third-partys-product-says-texas-top-court-2021-06-28.
A state appellate court in California, however, last year said
it could be liable for goods it stores and ships via its
Fulfillment by Amazon program.
Effective Sept. 1, Amazon will pay valid claims of up to $1,000,
which make up more than 80% of injury and damage cases on its
platform, at no cost to sellers, and it may step in with more
help if sellers are unresponsive, the company said. The policy
"better protects Amazon customers and sellers," it said.
It also announced Amazon Insurance Accelerator, a network of
insurance providers that sellers can access if they choose, and
an updated policy requiring more merchants to obtain product
liability insurance. Amazon itself is not offering this
insurance, it said.
(Reporting By Jeffrey Dastin; editing by Richard Pullin)
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