On July 3, a U.S. appeals court ruled that Amazon may be held liable for third-party products sold on its platform. The decision came from the 3rd U.S. City Court of Appeals in Philadelphia, and reverses the lower court ruling that had previously come out in Amazon’s favor.
The ruling states:
Amazon fails to account for the fact that under the Agreement, third-party vendors can communicate with the customers only through Amazon. This enables third-party vendors to conceal themselves from the customer, leaving customers injured by defective products with no direct recourse to the third-party vendor.