Can Amazon Be Held Liable for My Product Defect Injury?
Yes, but the issue is nuanced. You’ve likely used Amazon or another e-commerce platform to purchase various products from various sellers. However, the goods you buy from Amazon– unlike other products – may risk physical injury to yourself or your property due to defects in their design, production, and associated warnings (or lack thereof). The issue becomes your rights under product defect claims and Amazon’s potential liability when this happens.
The legal landscape for Amazon’s strict product liability of defective goods offered on its platform could be more stable. Current cases (some of which are subject to further appeal) may be creating some precedent to take greater responsibility for Amazon defective products on its platform that cause injury. Your likelihood of success with a product liability claim depends on the specific facts, the nature of your injury, and the applicable state or federal law.
The product liability attorneys at Adamson Ahdoot offer a free consultation to answer your questions and discuss your legal rights. Our lawyers have recovered millions of dollars for victims of serious injury, including injuries from defectively designed, manufactured, and marketed products. We are unafraid to take on difficult product liability cases and large corporations like Amazon.
California and Other States Are Raising Legal Issues About Amazon Defective Products
Historically, strict liability for a product defect applies to the members of a product’s supply chain, which may include the designer, manufacturer, distributor, and seller. Old case law on product defect liability failed to consider the modern consumer experience of purchasing goods from third sellers through internet marketplaces like Amazon.
The issue with Amazon and other e-commerce platforms is that consumers may be at risk of purchasing defective products from third-party sellers.
Furthermore, third-party sellers may be impossible to locate and obtain a judgment against after an injury occurs. How and if an internet marketplace should fit into that supply chain of liability needs to be clarified. The status quo has been that Amazon can avoid liability in many instances because it is simply a service provider that lacks control over defective products from third parties.
A large percentage of Amazon’s gross merchandise sales come from third-party sellers. Data from 2018 shows that third-party sellers were responsible for over 50% of Amazon’s total share of gross merchandise sales.
Recent Court Decisions Impacting Amazon’s Liability
California
Recently, the California Fourth District Court of Appeals challenged the status quo in August after a woman purchased a third-party replacement laptop battery that later exploded, causing her serious burns. In Bolger v. Amazon, the court stated that under the circumstances of the case, Amazon could be held strictly liable for defects in third-party products sold via its website.
In 2021, a California appellate court ruled that Amazon could be found strictly liable for the product defects of Amazon’s third-party sellers. The court relied on the following facts to determine that Amazon was within the supply chain that could make it strictly liable for the exploding laptop battery:
- Amazon took possession of the laptop battery (i.e., stored it in its warehouse) and directly fulfilled the customer’s order through delivery.
- Amazon’s product listing did not conspicuously inform the consumer of the third-party seller’s identity or the nature of Amazon’s relationship to the sale.
- Amazon controlled the entire sales transaction.
- Amazon can adjust liability costs with other participants in its manufacturing and marketing enterprise.
- Amazon can pressure third-party sellers to enforce safety mechanisms and seek indemnity from sellers afterward.
A spokesperson for Amazon acknowledged the company’s intent to appeal the Court’s decision. However, the case reflects a judiciary sentiment that Amazon bears some responsibility to injured parties for harm from defective products sold through its platform.
Other States with Ongoing Litigation
Texas
A woman in Texas filed a product lawsuit against Amazon after her toddler swallowed a remote-control battery from a third-party seller, causing esophageal burns. She claimed the remote’s defect was that it did not properly contain the battery, which allowed the toddler to access and swallow it.
However, the Texas Supreme Court decided on appeal that Amazon did not meet the definition of a seller under the Texas Products Liability Act, which excused it from responsibility for the incident. The Court relied on Texas’ common law to define seller, and a major point in its reasoning was the idea that sellers are those who relinquished the title of the defective product. As a result, Amazon was not a seller because it never had the title of the defective product.
Wisconsin
A Wisconsin court recently dealt with the issue of when a faulty product from Amazon damaged property in a 2019 lawsuit. In that case, the man purchased a faucet from a third-party seller, but the faucet malfunctioned and flooded his entire home.
Under Wisconsin’s strict liability law, the court determined culpability could extend beyond the manufacturer if another entity assumed one of the manufacturer’s responsibilities. Alternatively, another entity could be liable if neither the manufacturer nor the insurer could be given service of process within the state. The court then noted that Amazon was largely responsible for getting the malfunctioning faucet into the stream of Wisconsin commerce.
Pennsylvania
Finally, a court in Pennsylvania also found Amazon could be liable to injured parties in defective product lawsuit cases. In that case, a woman claimed a faulty dog collar broke, which led to a retractable leash recoiling and hitting her in the face, blinding her in one eye. The court, like the Bolger case, acknowledged a few different factors that supported holding Amazon liable:
- Amazon was the only party available to the plaintiff for recourse.
- Placing liability with Amazon would provide an incentive to enforce safety measures.
- The legal terms established between Amazon and the third-party seller.
Ultimately, the Pennsylvania court felt Amazon had the power to exert substantial control over third-party sellers, which was enough to place the company’s liability on its shoulders.
Types of Product Defects and Injuries
Theoretically, any product defect that causes physical injury to your person or property could create a potential product liability case. As the cases above illustrate, common product defects may involve consumer electronics with faulty parts prone to explosions and fires that cause burns or other damage. You may also consider product defects involving potentially dangerous machinery or other heavy equipment. However, even the simplest products (e.g., a dog collar) can lead to permanent injury when a defect occurs in certain contexts.
Common Product Defects
- Design Defects: Flaws in the product’s design make it inherently unsafe.
- Manufacturing Defects: Issues that occur during production, making the product unsafe.
- Marketing Defects: Failure to provide adequate instructions or warnings about the product’s risks.
Severe Injuries
The jury awards for product liability are higher than other causes of personal injury. Data from 2019 shows that product liability jury awards had the highest median value, at $2 million, and the second-highest average award, at $7,416,300 (only behind personal negligence cases).
Injuries from product defects may include:
- Burns
- Cuts
- Broken bones
- Muscle or ligament tears
- Head injuries (concussions, brain bleeds, etc.)
- Loss of body parts or their function (e.g., amputation, vision or hearing loss, etc.)
- Other physical trauma
What to Do if You Receive a Defective Product from Amazon
When a product you purchase through Amazon’s website or platform causes injury, you may consider taking some of the following steps. The first is to seek proper medical evaluation to help you identify and treat injuries from the incident.
The next step may be to schedule a consultation with an attorney as soon as it is reasonably safe. Your attorney may be able to provide important guidance about your rights under the law and may help you execute other steps necessary to recover after a product defect injury.
Steps to Take After Receiving a Defective Product
- Seek Medical Attention: Obtain proper medical treatment for any injuries.
- Consult an Attorney: Discuss your legal rights and potential claims with a product liability attorney.
- Preserve Evidence: Keep the defective product, packaging, purchase records, and related documents.
- Document the Incident: Take photos of the product and your injuries, and keep any reports from medical professionals or emergency services.
Amazon’s A-to-Z Guarantee: What It Means for Defective Products
Amazon offers an A-to-Z Guarantee for products sold by third-party sellers. This guarantee is designed to protect customers when they purchase items that arrive damaged, are not as described, or are defective. Understanding this guarantee can be crucial for dealing with a defective product.
What Is the A-to-Z Guarantee?
The A-to-Z Guarantee covers the timely delivery and condition of your items. If you have issues with a product, such as being defective or not as described, you can file a claim under this guarantee. Amazon will then investigate the claim and, if found valid, may offer a refund or replacement.
How to File an A-to-Z Claim
- Contact the Seller: Before filing a claim, contact the seller to resolve the issue.
- File a Claim: If the seller does not resolve the issue, you can file an A-to-Z claim through your Amazon account.
- Provide Evidence: Submit any evidence you have, such as photos of the defective product or emails with the seller.
- Wait for Resolution: Amazon will review your claim and decide on a resolution.
Impact of Negative Feedback and Poor Customer Service
Negative reviews and feedback can lower customer experience and affect a seller’s performance metrics. High order defect rates can lead to penalties for sellers, including account suspension. To avoid negative feedback, it is in the best interest of sellers to address customer concerns promptly and provide accurate product descriptions.
Ensuring Positive Customer Satisfaction and Excellent Customer Service
Amazon encourages sellers to maintain high standards for product quality and customer service. This includes:
- Providing accurate product descriptions.
- Ensuring products are shipped in perfect condition.
- Addressing customer complaints and issues promptly.
- Managing the return process efficiently to handle damaged goods and refunds.
Understanding the Fulfillment Process
Amazon’s fulfillment process plays a significant role in user experience. Fulfillment by Amazon (FBA) allows sellers to store their products in Amazon’s warehouses, where Amazon handles shipping, returns, and shopper service. This process helps protect customers and ensures a higher level of service.
Benefits of Fulfillment by Amazon
- Reliable Shipping: Amazon ensures timely and reliable shipping for FBA products.
- Customer Service: Amazon handles buyer inquiries and returns, providing outstanding customer service.
- Inventory Management: Sellers benefit from Amazon’s efficient inventory management system.
Legal Perspectives on Amazon’s Liability
Legal experts continue to debate Amazon’s role and liability in product defect cases. The evolving legal landscape means consumers and sellers must stay informed about the latest developments. Courts across different states have varied rulings, creating a complex and nuanced legal environment.
The Role of State Laws
State laws play a significant role in determining Amazon’s liability. Different states have different definitions of a “seller” and varying standards for product liability. As seen in Texas, Wisconsin, and Pennsylvania cases, outcomes can differ based on state-specific laws and judicial interpretations.
The Future of Amazon’s Liability
The future of Amazon’s liability for defective products remains uncertain. As more cases are brought to court, new precedents may be set, potentially increasing Amazon’s responsibility for the safety of products sold on its platform. Consumers and sellers should monitor these developments and seek legal advice when necessary.
The Role of Insurance in Product Liability Cases
Insurance can be critical in product liability cases, especially for sellers on Amazon’s platform. Understanding how insurance policies can cover defective products and liability claims is essential for both consumers and sellers.
Types of Insurance Coverage
- General Liability Insurance: This insurance covers bodily injury and property damage caused by defective products. Sellers should ensure they have adequate coverage to protect against potential claims.
- Product Liability Insurance: Specifically designed to cover claims related to product defects, this insurance is vital for manufacturers and sellers to protect against lawsuits and financial losses.
- Seller’s Insurance: Amazon requires certain sellers to maintain insurance policies that cover product liability. This requirement helps protect the seller and the customer in case of a defect.
Benefits of Having Insurance
Having the right insurance coverage can provide sellers with peace of mind and financial protection. It ensures they can handle claims effectively and continue operating their businesses without significant disruptions. For consumers, knowing that a seller is insured can increase confidence in the purchasing process and provide assurance that any issues will be resolved promptly.
Contact Us for a Free Consultation
If you or a loved one has been injured by a defective product purchased on Amazon, contact the product liability attorneys at Adamson Ahdoot for a free consultation. Our experienced lawyers are here to answer your questions and help you understand your legal rights. Call us today at (800) 310-1606 to discuss your case.
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