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by throwaway_jobs 2191 days ago
I recall stories of counterfeit child car seats that failed safety standards (don’t think there was a lawsuit) just “undercover purchases” and actual safety testing of the fakes.

As I understand it Amazon isn’t liable which to me makes no sense as it relates to defective products (everyone in the supply chain of a defective product should be jointly and severely liable).

I don’t care if it’s a 3rd party seller, Amazon should be liable as it hosts the product for sale, connects buyer/seller, processes payments, typically stores (and commingled) the products, and probably delivers the product.

The thing about punitive damages is they are a punishment, so eventually there will be a case where The jury hears how Amazon knowingly and willfully continued selling 3rd party items it knew were fake and dangerous (Fake DOT helmets; expired baby formula; fake baby car seats; exploding electronics; etc...)and the jury is going to drop the hammer. Even billions In punitive damages wouldn’t be a surprise, Amazon will appeal and it will come down to 10’s or 100’s of millions, but that’s when they will take real action to stop this. But it’s going to take time for this to happen.

2 comments

The alternative is an online marketplace with no accountability. That doesn't sound safe.
The Alternative is going back to eCommerce where individual shops put up their own web site, market their own website and are liable for their own website (and have control over their supply chain)

Today since the build of consumers are on Amazon if you are a retailer you need to be one Amazon, and if you want access to Prime Customer you need to use Fulfillment by amazon, Where now you loose control over your supply chain due to co-mingled inventory

So even if I have a stellar reputation as A+AcmeMerchant, and customers look for my store on amazon they are not guaranteed to get the product that I sent to amazon, no they could get JoeBobScammers Product even though it was sold "by me" and fulfilled by amazon

So I will not go as far as to say amazon should be liable for ALL sales, but I do agree that any Sale that is shipped from an Amazon Warehouse they should be liable for. They choose to comingle all of their inventory they should face the liability

The online marketplace have more accountability. You know who you are buying from. Buy from name brand and you get name brand. Buy from nane brand (did you notice the n not M?) and you get from nane brand. This gives name brands lawyers someone to send their lawyers after and traceability if there is fraud. With Amazon cominguled good you don't know where the counterfeit came from so you can't play wack-a-mole with fraud. It just keeps happening.
The issue is Amazon doesn't know. All they have to go on is whatever UPC/SKU you enter to tell them which bin to put something in and that's it. That is the extent of their inventory management. This is why you should not utilize FBA if your major concern is people actually getting the product you are selling.