What’s a Market Facilitator and Why Does it Matter? – amazonnewstoday

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B. Market Product Legal responsibility

As an internet market, Amazon can also quickly be answerable for the security of the merchandise retailers checklist on its web site.

Up till 2018, it had an iron-clad protection when clients took it to court docket over product security: it’s solely the middle-man.

The Weintraub v. Daihatsu et. al. case is a advantageous instance. So, best-case situation: an insurance coverage firm coated among the harm. However then got here the Bolger v. Amazon (Aug. 2020) case, the place an FBA laptop computer battery, shipped in an Amazon field, exploded inside weeks.

The client misplaced the case however gained the enchantment. Then, as Reuters factors out, Amazon stated in a blog post that it might settle for legal responsibility for 3P merchandise security if all different marketplaces do.

However the regulation that will have made that occur, AB 3262, was first watered down after which shelved.

So, days later, Amazon filed a petition saying, amongst others, that the legislature ought to get to resolve the boundaries of legal responsibility, not the courts.

However in a landmark choice, the California Supreme Courtroom (CSC) ruled that Amazon was answerable for that exact faulty product.

Amazon then requested for a evaluation. It was denied, based on Bloomberg Law. So, the California Supreme Courtroom ruling stands. It states that no matter Amazon calls itself – retailer, distributor, market facilitator- is irrelevant. Market product legal responsibility rests with Amazon.