Amazon could be held responsible for other vendors

Amazon’s new battle could reshape its future

According to the Wall Street Journal, the U.S. Consumer Product Safety Commission is thinking of reclassifying Amazon as a distributor: a move that could make the company responsible for the safety and quality of products sold by 3rd vendors on its platform.

Amazon stats

Traditional retailers are already burdened with this responsibility. Amazon joining the group would come at a heavy price for the company that classifies itself as a logistics platform connecting buyers and sellers.

• Currently, over 60% of Amazon's sales come from 3rd party sellers

• There are roughly 2.5 million active third-party sellers on Amazon

The danger of Amazon

If Amazon gets reclassified, it would be like opening the door to potential lawsuits over hazardous, mislabeled, or banned products. It could face a heap of legal challenges. The company might be held responsible for:

• Product conditions

• Legitimacy

• Safety concerns

• Recalls for items sold through its platform

The Consumer Product Safety Commission's 2021 complaint against Amazon further complicates the situation. The regulatory body accused the company of distributing unsafe 3rd products through its logistics network.

Reports have also resurfaced alleging that some products sold on Amazon have even led to injuries.