Buy fake and shoddy products? Amazon agreed to pay up to $1000

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Tencent technology news on August 11, US local time on Tuesday, retail giant Amazon announced the launch of a new return policy, which is willing to compensate for property damage or personal injury caused by fake and shoddy products, and pay up to $1000 directly to shoppers. The new policy will be implemented on September 1 and will apply to all products sold on Amazon, including those sold by third-party sellers.
In recent years, Amazon has become the largest online retailer in the United States, but product liability cases have always plagued it, in part because it has turned its store into an online marketplace including millions of third-party suppliers. By selecting a large number of goods, the company allows merchants to sell goods on its website with little review.
Although Amazon defended its screening procedures, including the use of machine learning technology to identify high-risk sellers, it faces lawsuits against fake and shoddy products all over the world, which damage the interests of customers, cause property losses and even personal injury.
However, Amazon made it clear in its new policy that the company still believes that it will not bear legal liability for the fake and shoddy products sold by third-party merchants on its website, and these suppliers are still responsible for the products they sell. Amazon wrote on its blog that the new policy “goes far beyond our legal obligations”. Market research firm marketplace pulse estimates that there are 6.3 million sellers in the Amazon market, of which 1.5 million are currently active.
Amazon also said in its post that more than 80% of fake and shoddy products claim less than $1000. The company elaborated on its claim policy on payment exceeding this threshold, writing that if Amazon believes that the seller has not responded or refuses to provide a valid claim, the company “may intervene and pay a higher amount of claim”.
Justin (Gus) Hurwitz, a law professor at the University of Nebraska Lincoln and director of the Nebraska Center for governance and technology, said that in fact, Amazon did not make a clearer statement, which made its statement “worthless”.
Hewitz said the new policy may be driven by legal and regulatory efforts to force Amazon to take greater responsibility for selling defective goods. Last month, the U.S. Consumer Product Safety Commission sued Amazon, accusing it of refusing to recognize the power of regulators to force the company to recall defective and unsafe products.
In April this year, an appeal court in California ruled that Amazon may be responsible for the burns caused by the allegedly defective floating skateboard sold by a third-party seller in its market, although the e-commerce giant is not responsible for the storage or delivery of the product. Amazon also won product liability lawsuits, such as a case in Texas in June, when the state Supreme Court ruled that Amazon was not responsible for the injury of a young child who swallowed an allegedly defective remote control battery sold by a third party on Amazon’s website.
Federal regulators sued Amazon for refusing to recall dangerous products. “I suspect Amazon has seen an ominous sign. They are trying to prevent future litigation and legislation because they may bring difficulties to them,” herwitz said
Amazon said the new process would be simplified to enable it to respond to shoppers’ complaints and allow it to track down illegal sellers. Under the current policy, shoppers usually have to resolve disputes with third-party sellers themselves. Many shoppers complain that sellers of fake and shoddy goods are actually difficult to identify. Many people are not under the jurisdiction of the United States and it is difficult to track them.
Unable to hold these businesses accountable, customers such as Angela Bolger decided to sue Amazon. In 2016, Borg purchased a $12.3 replacement battery for his laptop from Amazon’s third-party seller. However, the battery caught fire, causing third degree burns to her arms, legs and feet, and burning her bed, clothes and floor in her apartment in San Diego. Borg sued Amazon and won, in part because he couldn’t find a third-party seller, making Amazon the only viable defendant. Borg and Amazon now plan to debate damage claims in October.
Jeremy Robinson, Borg’s lawyer, said the new policy would not have much impact on Borg because her claim exceeded $1000. “Amazon is clearly trying to position itself so that they won’t be seriously damaged,” Robinson said Amazon argued in court that the fact that the goods were sold by a third party exempted it from any liability.
Amazon said it would use its existing fraud detection and abuse system and cooperate with external independent insurance fraud experts to analyze the effectiveness of shoppers’ claims. Amazon explained that this would provide initial protection for sellers because Amazon would avoid sellers having to deal with “unproven, reckless or abusive claims”. It will also provide product liability insurance to sellers through a new service called Amazon insurance accelerator to ensure that shoppers are provided with trusted suppliers.
According to an email sent to the seller, Amazon’s new policy also requires third-party sellers to obtain product liability insurance when their sales reach $10000 within one month. Previously, Amazon required sellers to obtain insurance when their sales reached $10000 on the website for three consecutive months. Amazon also allows sellers to purchase insurance through a supplier network arranged with insurance brokers´╝ł Tencent Technology (reviser / Jinlu)