CA appellate court rules Amazon is responsible for the safety of third-party products it sells, rejecting Amazon’s claim of merely connecting buyers and sellers (Appellate Amazon Amazonlazarus Angelestimes)

Appellate Amazon Amazonlazarus Angelestimes: On Tuesday, the California Court of Appeals ruled that Amazon is responsible for the safety of third-party products it sells. In doing so, they rejected Amazon’s argument that they are merely a platform connecting buyers and sellers.

“Amazon contends that it is not subject to suit because (1) it is not obligated to regulate the quality or safety of items sold on its website or (2) because it does not have exclusive control over commercial activity on its website,” explains Judge Richard L. C. Martin. “We reject both contentions.”

The case against Amazon is centered around “hoverboard” hoverboards, which were a popular Christmas gift this year. The mother of a Texas boy who received a hoverboard as a Christmas present claimed the hoverboard’s battery exploded and severely burned her son. She sued LiHold Inc., Tesla Corporation, Home Depot, and Amazon on behalf of her son and herself, alleging that the companies negligently manufactured the hoverboard with defective lithium batteries.

“Amazon is in the business to make money and do so by facilitating sales of products to consumers,” reads the California Court of Appeals opinion. “This business model appears to insulate Amazon from any liability imposed by a state for failing to take reasonable steps to ensure that its website is safe.”

As such, the court ruled that Amazon could be held liable for faulty products sold on its platform as a result.

“We conclude that, by selling products to consumers on its website, Amazon exercises sufficient control over the products to qualify as a ‘manufacturer’ and therefore is subject to liability under California’s strict-liability statute. The fact that manufacturers may also sell their products directly to consumers without using an intermediary like Amazon does not shield Amazon from liability.