Amazon to pay US users for injuries, damages by sellers’ products

Amazon announced on Tuesday that it will soon begin compensating consumers in the United States who are hurt or have their property destroyed as a result of the products sold by third-party merchants.

The new policy will take effect on September 1 and payouts will be restricted at $1,000, it said in a blog post.

Customers will be paid directly by Amazon, according to the company. Sellers are still responsible, but Amazon stated that if they have proper insurance, it would not expect them to pay it back.

Amazon added that from September 1st, it will take a more active role in resolving damage claims between consumers and third-party vendors.

‘Customers can contact Amazon Customer Service and we will notify the seller and help them address the claim. If a seller does not respond to a claim, Amazon will step in to directly address the immediate customer concern, bear the cost ourselves, and separately pursue the seller,’ it stated in the blog post.

At the moment, customers contact sellers through Amazon if they have a problem, but the company rarely steps in.

Amazon has previously said that it is not responsible for third-party items sold on its site. The new compensation policy, according to Amazon, does not imply that the company accepts culpability for harm or damage caused by third-party goods.

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A California woman sued Amazon in August 2020, alleging that a new laptop battery she purchased from the site burst and burnt her. The firm said it should not be held accountable because it ‘did not distribute, manufacture or sell the product.’ The court ruled that Amazon was liable, overturning an earlier judgement.

The new policy comes a month after the Consumer Product Safety Commission (CPSC) launched a complaint against Amazon, alleging that it failed to adequately warn customers about 420,000 hazardous goods sold on its site, including hairdryers and carbon monoxide detectors. Amazon said it had agreed with the CPSC’s request to provide a warning to buyers about the products.

While the new policy is now only in effect in the United States, an Amazon representative said that the firm is considering expanding it to other nations.