Is Amazon an insecure distributor?

The US Consumer Product Safety Commission has issued a decision determining that Amazon is a distributor of its products in the market, including those that violate product safety standards, and therefore should bear legal responsibility for its recall. The US Consumer Product Safety Commission stated in a press release that over 400000 products sold on Amazon are subject to this order.

Firstly, the Consumer Product Safety Commission has stated that it has determined that these products listed on the Amazon website and sold by third-party sellers using Amazon logistics programs constitute significant product hazards under the Consumer Product Safety Act. These products include defective carbon monoxide detectors, hair dryers without electric shock protection, and children's pajamas that violate federal flammability standards. It was also found that Amazon failed to inform the public about these dangerous products and did not take sufficient measures to encourage customers to return or destroy them, putting consumers at great risk of injury.

Secondly, Amazon's success as a retailer is partly attributed to small businesses selling products on its website. But Kate Asaraf, founder of hair care brand Dip, said she is determined not to sell her products there. Dipp seems to be the ideal brand for Amazon to attract millions of shoppers, not to mention all members, who make up 75% of American shoppers. The brand's shampoo, conditioner, and shower gel are all in the form of strips, starting at $14 each, aimed at attracting those who do not want to use personal care products with large plastic packaging. But Asalaf is skeptical of this retail giant, as selling products on its website incurs various costs, ranging from fees paid by all sellers to optional fees such as advertising.

On the other hand, Asaraf is not the only person who is skeptical about whether Amazon can help their company grow. Small business owners who have started selling products on Amazon say that fees and other costs make it difficult for them to truly make money, even if their products gain more exposure than on other websites. Even successful sellers on Amazon say that this requires finding out which products sell the best on the platform, including which products can bring the maximum return on advertising spending. Sometimes, for buyers, the money saved through Amazon shopping may not be as much.

In addition, the lawsuit led to the Amazon Consumer Product Safety Commission ordering the CPSC to file a lawsuit against Amazon, demanding that the tech giant stop selling identified hazardous products and implement a system to notify consumers when they purchase recalled goods. The CPSC also requires Amazon to provide a full refund for dangerous products sold on its platform, and argues that the company is a distributor of products on its website, and therefore has a responsibility to recall products if they have defects. An administrative judge ruled that Amazon is a distributor and must take certain measures, including issuing recall notices, to protect the public from harm caused by dangerous products.

Overall, during the litigation process, Amazon did not raise any objections to the existence of significant product hazards. On the contrary, it is argued that according to legal regulations, it is not a distributor of dangerous products and therefore has no responsibility to take action to protect the public. The judge rejected Amazon's argument. The Consumer Product Safety Commission requires that Amazon must develop and submit a proposed plan to inform buyers and the public about product hazards and provide refunds or replacements for these products.