Amazon Now Facing Increased Liability for Defective Products Sold On Its Site

The e-commerce giant Amazon has been fighting for years to deny any liability for defective products sold on its website. A recent decision by the California Court of Appeal, Fourth District, however, may change everything for the online behemoth, and give injury victims a path toward seeking compensation.

Ms. Angela Bolger, an Amazon user, claimed in a lawsuit that she was injured as a result of purchasing a replacement laptop battery on Amazon’s Marketplace website via the third party seller Lenoge Technology HK Ltd. The battery exploded, inflicting severe burns on her legs, arms, and feet. In her lawsuit, Bolger sought to hold Amazon directly liable for enabling the distribution of the defective product. However, her initial case was not successful. The San Diego Superior Court ruled in favor of Amazon and found that it operated as a service provider enabling the sales process, but was not responsible under California’s product liability laws.

Ms. Bolger appealed, and on August 13, the Court ruled in her favor, stating that Amazon should “be held liable if a product sold through its website turns out to be defective.” Justice Patricia Guerrero penned the opinion which asserted that the retail giant assumed a direct role through every stage of the sales process and operated beyond simply a service provider linking a customer to a distributor:

Amazon placed itself between Lenoge and Bolger in the chain of distribution of the product at issue here. Amazon accepted possession of the product from Lenoge, stored it in an Amazon warehouse, attracted Bolger to the Amazon website, provided her with a product listing for Lenoge’s product, received her payment for the product, and shipped the product in Amazon packaging to her. Amazon set the terms of its relationship with Lenoge, controlled the conditions of Lenoge’s offer for sale on Amazon, limited Lenoge’s access to Amazon’s customer information, forced Lenoge to communicate with customers through Amazon, and demanded indemnification as well as substantial fees on each purchase. Whatever term we use to describe Amazon’s role, be it “retailer,” “distributor,” or merely “facilitator,” it was pivotal in bringing the product here to the consumer….

In addition, the Appeals Court did not accept Amazon’s contention that it is protected under the Communications Decency Act of 1996, Section 230, which protects Internet companies from legal consequences arising from content published by independent third parties on their websites. The court found that Section 230 did not apply because the claims of Ms. Bolger relied on the activities of Amazon and not on its role as publisher of the product listing provided by Lenoge.

The ruling of the Appeals Court could place Amazon in new territory in terms of liability in the future.

More trouble ahead for Amazon

The company is facing additional lawsuits involving defective products in its own AmazonBasics line. A recent expose by CNN found that “Since 2016, at least 1,500 reviews, covering more than 70 items, have described products exploding, catching on fire, smoking, melting, causing electrical malfunctions or otherwise posing risks, according to an analysis of AmazonBasics electronics and appliances listed on its website.” One such object, a battery charger with thousands of reviews warning it could melt or burn, was still available for purchase at the time of the expose.

If the Court of Appeal’s decision is upheld, it may open the floodgates for lawsuits against Amazon. It could also make it easier to sue the retail giant for defective AmazonBasics products, as well.

The Maryland product liability attorneys at Plaxen Adler Muncy, P.A. are determined to protect the rights of consumers who have suffered injuries resulting from dangerous products, including exploding batteries. We have the experience that enables us to effectively hold responsible parties to account on the products they manufacture or distribute that injure our clients. If you have suffered a personal injury resulting from a defective electronic device or other product, give us a call today at 410.730.7737 or use our contact form to schedule a free consultation.