Amazon is challenging the Consumer Product Safety Commission (CPSC) over its responsibility to recall hazardous products sold on its marketplace, including those offered by third-party vendors. The e-commerce giant has filed a lawsuit disputing the CPSC's authority, claiming that it is only a logistics provider and not a distributor and therefore should not be held legally accountable for defective and dangerous goods.
The dispute dates back to 2021, when the CPSC sued Amazon for failing to properly recall tens of thousands of hazardous items, including flammable children's pajamas and faulty carbon monoxide detectors. While Amazon removed the products and notified customers, the CPSC accused the company of downplaying the risks. After an administrative law judge decided that Amazon was a distributor under federal law, the CPSC reaffirmed its decision, requiring Amazon to take full responsibility for the recalls.
In response, Amazon has taken the fight to the courts, claiming that the CPSC is overstepping its legal authority. The company claims that it doesn't manufacture or own the products in question and so shouldn't be considered a traditional retailer or distributor. Instead, Amazon describes its position as that of offering delivery services, facilitating transactions between third-party sellers and customers.
Amazon is arguing not only its legal classification but also the CPSC's constitutionality. The company claims that the agency's structure violates the separation of powers by shielding its commissioners from presidential removal except under specific circumstances. Amazon claims that this unlawful structure undercuts its authority, rendering its orders invalid.
Consumer advocacy groups, including Consumer Reports, have strongly condemned Amazon's legal maneuvering. William Wallace, director of safety advocacy at Consumer Reports, criticized the company's position, arguing that Amazon's refusal to take responsibility put consumers at risk. He underlined that allowing Amazon to avoid recall obligations could result in harmful products remaining in circulation, threatening people's lives.
The CPSC's July 2024 decision, which mandates Amazon's accountability for recalling over 400,000 unsafe products, set an important precedent for online marketplaces. That decision in Amazon's case will most certainly have far-reaching consequences, deciding whether major e-commerce companies can be compelled to prioritize consumer safety over legal technicalities.