Amazon Sues CPSC Over Product Recall Liability - Modern Distribution Management

Amazon Sues CPSC Over Product Recall Liability

Amazon says it isn't liable as a distributor under the Consumer Product Safety Act due to its role as a third-party logistics provider.
NAMPA, IDAHO - APRIL 17, 2021: Amazon trailers being loaded before heading on the road as freight

Eight months after being designated as a distributor and held liable for recalls of hazardous products sold through its platform, Amazon is fighting back with a lawsuit against the Consumer Product Safety Commission (CPSC).

In July 2024, the CPSC ruled that Amazon is a distributor, and therefore is legally responsible for the recall of products sold on the platform that are defective or fail to meet certain safety standards. In January, the CPSC issued a final ruling stating the steps Amazon must take to comply with that recall.

MDM’s SHIFT Conference Coming May 13-15 – Register Here 

In its March 14 complaint for declaratory and injunctive relief, Amazon argued that the commission overstepped its statutory authority and extended the scope of the Consumer Product Safety Act (CPSA) by ordering Amazon to conduct a broad recall of products manufactured, owned and sold by third parties.

Amazon’s complaint states that the CPSA allows the commission to order recalls only for manufacturers, distributors or retailers, and explicitly excludes third-party logistics providers. The CPSA specifies third-party logistics providers “shall not…be deemed to be a manufacturer, distributor or retailer of a consumer product solely by reason of receiving or transporting a consumer product in the ordinary course of its business.”

The CPSA defines a third-party provider as a “person who solely receives, holds or otherwise transports a consumer product in the ordinary course of business but who does not take title to the product.”

Labeled a Distributor, Amazon Given Hazardous Products Remediation Orders (Jan. 20)

Amazon contends that it should not be classified as a manufacturer or distributor because it operates its Fulfillment by Amazon (FBA) service, which stores and ships products for third-party sellers who retain ownership of the products. Because Amazon neither owns nor sells the products, it argues that it should not be considered a distributor or seller under product liability law and subsequently should not be subject to the commission’s recall order.

To learn more about the complaint filed in the District of Maryland, click here.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

Name(Required)
This field is for validation purposes and should be left unchanged.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!