Amazon Challenges Responsibility To Notify Customers About Recalled Products

Federal officials have been pushing to force Amazon to accept responsibility for recalling dangerous and defective products sold by third-parties through its popular website.

Amazon has filed a lawsuit against the U.S. Consumer Product Safety Commission (CPSC), claiming that the company should not be responsible for issuing recall notices for items sold by third-parties through it’s website, even though Amazon stocks and distributes the items directly from their warehouses.

The complaint (PDF) was filed by Amazon.com in the U.S. District Court for Maryland on March 14, naming the CPSC, its Acting Chairman, Peter A. Feldman, as well as other CPSC Commissioners, Mary T. Boyle, Douglas Dziak, Alexander Hoehn-Saric and Richard L. Trumka Jr., as defendants.

Amazon Ordered To Issue Recall Notices

In 2021, the U.S. Consumer Product Safety Commission (CPSC) accused Amazon of distributing several hazardous products, such as defective carbon monoxide detectors, unsafe hairdryers, and flammable children’s sleepwear through its Fulfilled by Amazon (FBA) program.

The agency argued that these items violated federal safety standards and that Amazon, as a distributor, was responsible for their recall. While Amazon removed the products and issued refunds via gift cards, the CPSC deemed the response inadequate, insisting on broader corrective actions.

In 2024, the CPSC formally ruled that Amazon qualified as a distributor under the Consumer Product Safety Act (CPSA), making it legally responsible for recalling hazardous products. The agency ordered Amazon to take additional steps, including notifying customers, issuing refunds, and ensuring the unsafe products were removed from circulation. 

Amazon contested the ruling, arguing that it only served as a logistics provider for third-party sellers and should not bear recall liability.

However, in January 2025, the CPSC issued a final order reinforcing its demands, which now requires Amazon to notify customers via email on the same day a federal recall is announced. Additionally, the company is required to inform “Fulfillment by Amazon” sellers who fulfilled the affected orders.

The CPSC also ordered Amazon to provide refunds for customers who purchased the items, as well as submit monthly progress reports, and maintain a list of recalls on its “Recalls and Product Safety Alerts” page for at least five years.

Amazon Files Suit Challenging Recall Responsibilities

In response, Amazon has filed a lawsuit against the CPSC, arguing that the agency exceeded its authority by ordering the company to conduct a broad recall for third-party products sold through its FBA service. 

The company contends that a 2008 amendment to the CPSA explicitly exempts third-party logistics providers from recall liability, reinforcing its position that it should not be held responsible for products it does not manufacture, distribute, or sell.

In its complaint, Amazon asserts that it acts solely as a logistics provider, storing and shipping goods on behalf of independent sellers while they retain ownership of their products. The company also emphasizes that it took corrective action when safety concerns were raised in 2020 and 2021, by removing hazardous products from sale, quarantining and destroying remaining inventory, and notifying affected customers via email and its internal messaging system. 

Amazon claims it issued full refunds to over 376,000 purchasers, making additional CPSC-mandated notifications and refunds unnecessary and legally unjustified.

Amazon argues that the CPSC’s decision is based on an unprecedented legal theory aimed at expanding regulatory control over online marketplaces. The company is suing the agency and its commissioners for violations of the Administrative Procedure Act, the First Amendment, the Constitutional Separation of Powers and Due Process.

Amazon is seeking to overturn the CPSC’s January 16, 2025, final order and obtain a legal declaration that it is a third-party logistics provider, not a distributor, under the CPSA.