Amazon distributed thousands of unsafe products sold through third parties on the e-commerce giant’s platform and is guilty of recalling them, a federal firm has ruled.
The US Consumer Product Safety Commission on Tuesday issued a ruling and order against Amazon, finding the store to be a “distributor” of products that were defective or did not meet federal protection standards.
The company, which generated $574. 8 billion in profits in 2023, is legally guilty of recalling more than 400,000 products, adding faulty carbon monoxide detectors, electrocution coverage for hair dryers, and violating children’s sleepwear. federal flammability standards, the firm said in a statement. .
Carbon monoxide detectors cited by the CPSC as defective or in violation of U. S. criteria come with products from WJZXTEK, Zhenzhou Winsen Electronics Technology, and BQQZHZ.
Children’s clothing sold on Amazon and cited through protective regulators TODAYMN Cotton and Lace Nightgowns for Little Girls; IDGIRLS Kids Soft Plush Flannel Hooded Bathrobes Sleepwear for Girls and Boys; Home Swee Boys’ Plush Fleece Skull Shawl Bathrobe; and Taiycyxgan Girl’s Coral Fleece Bathrobe, Unisex Kids Bathrobe, Pajamas and Sleepwear.
The hair dryers on the list come with products from those suppliers or manufacturers: BEAUTIKEN; OSEIDOO, Aiskki, Raxurt store; LEMOCA; Songtai, VIBOOS; and Xianming.
Listed on Amazon. com and sold through third parties through the Fulfilled by Amazon program, the parts pose a “significant product threat” under the Consumer Product Safety Act, the CPSC said. Amazon failed to inform the public about unsafe products and did not take action good enough to inspire consumers to return or destroy them, the firm said.
The CPSC’s ruling and order comes three years after the commission approved an administrative complaint against Amazon, alleging that it distributes certain products that pose a significant risk.
During the process, Amazon did not deny that the products posed a really big danger, but argued that it was not acting as a distributor and that it was not obligated to take action to protect the public.
The company also claimed that messaging initial buyers about “potential” security issues and providing credit was enough to deal with the risks, the commission said. He added that the company, as well as an administrative ruling, disagreed with Amazon’s claim, saying the retailer’s moves were “inadequate to protect the public. “
Amazon will now have to come up with proposals to inform others about harmful products and remove them from the flow by encouraging their return or destruction, the company said.
Amazon said it was disappointed by the CPSC’s ruling and plans to appeal the ruling in court.
“We ensure the protection of each and every product in our store through our A-to-z guarantee, whether it’s sold through Amazon or one of our promotional partners,” a spokesperson told CBS MoneyWatch in an email. We take steps to protect you from harmful products and constantly monitor classified ads in our store. If we detect that there is a harmful product for sale, we fix the problem without delay and refine our processes.
Amazon has invested more than $1. 2 billion in 2022 and hired more than 15,000 people, from device learning scientists to software developers and researchers, to combat counterfeiting, fraud and other abuses, the company said.
The CPSC order “marks a first step forward for online customer coverage and is helping to power online marketplaces in the future,” said Oriene Shin, policy counsel at Consumer Reports.
Shin also called on Amazon to drop its legal war with the CPSC, noting that the company had taken “positive steps for product protection in years. “
In July, the CPSC issued four recalls on products sold exclusively on Amazon, including children’s pajamas that posed a burn risk, a pool drainage canopy that violated entrapment coverage standards, double strollers that violated several defense rules and rugs that posed a fire hazard.
Quotes were delayed by at least 15 minutes.
Market knowledge through ICE Data Services. ICE limits. Developed and deployed through FactSet. News via Associated Press. Legal statement.