Consumer Reports Applauds Landmark CPSC Decision Holding Amazon Accountable for Hazardous Products Sold by Third-Party Sellers

WASHINGTON, D.C. — Consumer Reports (CR) today commended the U.S. Consumer Product Safety Commission (CPSC) for its decision and order holding Amazon accountable for distributing unsafe products sold on its platform by third parties, setting an important precedent for consumers’ safety online. In a unanimous 5-0 vote, the Commission determined that as a “distributor” under federal law, Amazon bears legal responsibility for recalling more than 400,000 products that are defective or noncompliant—specifically, carbon monoxide detectors that fail to alarm, hair dryers without electrocution protection, and children’s sleepwear items that violate federal flammability standards. Amazon will now be required to notify purchasers and the public about these product hazards and provide refunds or replacements for the affected products.

Oriene Shin, policy counsel for Consumer Reports said, “This is clearly the right decision. There’s no good reason for a company to be exempt from these sensible requirements just because it hosts an online marketplace; otherwise, products that could injure or kill people might slip through the cracks. Consumers are affected either way, and need the company to step up. We appreciate that the CPSC’s leaders agree and we thank them for this order, which marks a major step forward for consumer protection online and helps hold online marketplaces accountable in the future.

“Amazon should move quickly to comply with the CPSC’s order and issue strong recalls for these hazardous products. The recalls should include any related products that pose a similar hazard, regardless of whether the product was distributed through the Fulfilled by Amazon program. 

“Amazon should finally give up its damaging legal battle with the CPSC. It’s been three years, and the sooner Amazon acts, the sooner people will be better protected in their homes. Amazon has taken a number of positive steps for product safety in recent years. It should accept this decision rather than appealing it in federal court, which would run counter to these efforts and tarnish the company’s otherwise improving reputation for product safety.”

Amazon has been the subject of dozens of state and federal product liability lawsuits, with mixed outcomes, in which the company has argued it bears little or no responsibility for the safety of products on Amazon that are offered by third-party sellers. However, the CPSC’s decision recognizes that Amazon operated as a distributor, as defined by federal law, and therefore must meet the clear legal obligations for products it received, stored, and delivered through its “Fulfilled by Amazon” program. The decision orders Amazon to submit proposed remediation plans for approval by the CPSC, including how the company will notify purchasers and the public of these hazardous products and incentivize consumers to remove the products from their homes or destroy them.

Under the Consumer Product Safety Act (CPSA), a federal product safety law passed in 1972, the CPSC has the authority to file a lawsuit and conduct an adjudicative proceeding to require a manufacturer, distributor, or seller to carry out a safety recall. This proceeding can lead to a mandatory recall order requiring a company to take various actions, such as notifying the public, offering consumers a sufficient remedy, providing monthly recall progress reports, and destroying defective products in its possession.

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Media Contact: Emily Akpan, emily.akpan@consumer.org