Amazon to compensate US customers negatively impacted by products, but won’t admit any liability

Amazon to compensate US customers negatively impacted by products, but won't admit any liability 2
Image Courtesy-businesstimes

In a new policy that could prevent lawsuits, Amazon announced on Tuesday that it will compensate consumers who are injured or have property damage as a result of defective goods sold on its US platform by others.

Consumers have been suing the world’s largest online retailer for years, claiming it is accountable when a merchant sells defective goods on Amazon. In 2016, a lady in Pennsylvania attempted to blame Amazon for a merchant’s retractable dog leash snapping and blinding her eye.

Amazon believes that merchants are to blame, and the majority of judges have agreed with it. Last year, a California state appeal court ruled that it might be held accountable for products it keeps and ships through its Fulfillment by Amazon programme.

Effective September 1, Amazon will settle genuine claims of up to $1,000 (approximately Rs. 74,440 crores) at no cost to sellers, accounting for more than 80% of injury and damage cases on its platform, and it may step in with more help if sellers are unresponsive, according to the business. It stated that the policy “better protects Amazon customers and vendors.”

It also unveiled Amazon Insurance Accelerator, a network of insurance providers that sellers can choose from, as well as an amended policy that requires more merchants to get product liability insurance. According to the company, Amazon does not provide this insurance.


Khushi is an avid reader and loves analyzing companies in the digital space. Her interest is in online marketing, business, startups, and politics. She does everything perfectly by taking extra time.
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