In 2021, Amazon tightened a policy that requires sellers to obtain insurance and expanded its A-to-Z Guarantee to cover customers against defective products in cases of property damage or personal injury, even when a third-party seller has sold the item.
On Wednesday, Amazon announced it expanded the Guarantee’s liability coverage from US-only to now include the EU, Canada and UK: “In 2021, we expanded the A-to-z Guarantee to include a streamlined process for U.S. customers to resolve personal injury or property damage claims due to a defective product purchased in our store, and in May 2024, we expanded coverage to Canada, the United Kingdom, and the EU. This protection applies to all physical products – including items sold by our approximately 2 million selling partners.” In one section of the blog post, Amazon explained the benefit to buyers, writing in part:
“Customers can continue to contact Amazon directly to request a refund if they are not happy with the delivery or condition of a product purchased in our store, and were not able to resolve the issue directly with the selling partner, as well as file a claim in the event of a defective product purchase.
“In 2021, we expanded the A-to-z Guarantee to include a streamlined process for U.S. customers to resolve personal injury or property damage claims due to a defective product purchased in our store. This protection applies to all physical products – including items sold by our approximately 2 million selling partners.
“While injury or damage caused by a defective product purchases is rare, we strive to make the resolution of any such claim straightforward and convenient. To simplify this process for our customers and selling partners, Amazon will facilitate the resolution of property damage and personal injury claims between the customer, the selling partner, and their insurance provider. Customers can file a claim by contacting Amazon’s Customer Service, and we will notify the selling partner and help them address the issue. This streamlined process goes beyond Amazon’s legal obligation, and ultimately saves time, money, and effort for all.”
In another section, Amazon explained benefits to sellers, writing in part:
“When a claim is filed, Amazon combines our advanced fraud and abuse detection systems with external, independent insurance specialists to analyze filings, take on the investigative work for our selling partners, present valid claims, and deny unsubstantiated, frivolous, or abusive claims. By doing this work on behalf of sellers, we save them from having to investigate these claims on their own.”
Consumers have sued Amazon and other marketplaces for damages and injuries resulting from allegedly defective products – who can forget the hoverboard disaster of 2015, or the tragic death of a toddler who wore a teething necklace purchased on Etsy? Requiring sellers to have insurance and managing customer claims may have been a way to mitigate risks, something Amazon now leverages in the hope of giving shoppers greater confidence in its marketplace.
Wednesday’s blog post is on AboutAmazon.com.
Updated on 5/29/2024 to reflect the fact Amazon expanded the program from US-only to include additional geographic regions.
