Amazon Must Recall Defective Products Sold by FBA Sellers, CPSC Rules

Amazon is a distributor, according to an order from the US Consumer Product Safety Commission (CPSC), and is therefore responsible for recalling defective or unsafe products sold through its FBA fulfillment program. An Amazon spokesperson told EcommerceBytes it plans to appeal the decision.

Over 400,000 products are subject to the CPSC’s Decision and Order against Amazon.com, Inc., which was published on Tuesday, including: faulty carbon monoxide (CO) detectors, hairdryers without electrocution protection, and children’s sleepwear that violated federal flammability standards.

The order stems from a 2021 complaint, and the government agency made clear today that the matter concerns products sold through the Fulfilled by Amazon program, and not merchant-fulfilled products.

The CPSA press release issued on Tuesday stated in part:

“The Commission determined that these products, listed on Amazon.com and sold by third-party sellers using the Fulfilled by Amazon program, pose a “substantial product hazard” under the Consumer Product Safety Act (CPSA). Further, Amazon failed to notify the public about these hazardous products and did not take adequate steps to encourage its customers to return or destroy them, thereby leaving consumers at substantial risk of injury. Amazon argued before an Administrative Law Judge (ALJ) and the Commission that it was not a distributor and bore no responsibility for the safety of the products sold under its Fulfilled by Amazon program.

“Under the Commission’s Decision and Order, Amazon must submit proposed plans to notify consumers and the public about the hazardous products, and to remove the products from commerce by incentivizing their return or destruction. The Commission will consider Amazon’s proposed plans and address them in a second order in this case.”

The order cited numerous FBA policies, including those that require FBA participants to coordinate with and reimburse Amazon for product recalls and that mandate that FBA participants contact customers exclusively through the Amazon platform. (A link to the order is included in the CPSA’s press release.)

Amazon responded to EcommerceBytes’ inquiry on Tuesday with the following statement:

“We are disappointed by the CPSC’s decision. We plan to appeal the decision and look forward to presenting our case in court. When we were initially notified by the CPSC three years ago about potential safety issues with a small number of third-party products at the center of this lawsuit, we swiftly notified customers, instructed them to stop using the products, and refunded them.

“In the event of a product recall in our store, we remove impacted products promptly after receiving actionable information from recalling agencies, and we continue to seek ways to innovate on behalf of our customers. Our recalls alerts service also ensures our customers are notified of important product safety information fast, and the recalls process is effective and efficient.

“We stand behind the safety of every product in our store through our A-to-z Guarantee, regardless of whether it is sold by Amazon or by one of our selling partners. We have proactive measures in place to prevent unsafe products, and we continuously monitor the listings in our store. If we discover an unsafe product available for sale, we address the issue immediately, and refine our processes.”

The Verge said the ruling involved Amazon products sold between 2018 and 2021 and has more details in today’s coverage.

Interestingly, Amazon has a program called Recalls Logistics Service (RLS) in which it notifies customers and issues refunds on behalf of sellers enrolled in the program. Amazon’s A-to-z Guarantee also includes a process for resolving personal injury or property damage claims due to a defective product, according to a February post on About Amazon.