CPSC Orders Amazon To Warn Consumers About Hazardous Products Sold on Its Website

About 400,000 products sold by third parties on Amazon’s retail website are subject to CPSC recall orders.

Federal regulators are now requiring Amazon to initiate recalls and notify customers about hazardous products sold through its online marketplace, following a prolonged legal battle.

The U.S. Consumer Product Safety Commission (CPSC) announced the new Decision and Order on January 17, following a July 2021 complaint alleging that Amazon distributed hazardous products that violate federal flammability standards, including defective carbon monoxide detectors, hair dryers without electrocution protection and children’s pajamas.

While the products are not made by Amazon, they are sold by third parties through the company’s website and use the “Fulfilled by Amazon” program for delivery. The new decision and order requires Amazon to take action to ensure consumers know about potential product problems that can lead to serious injuries.

The CPSC emphasizes that these products present a significant threat to consumer safety due to their defects and failure to comply with federal safety standards. Under the new order, more than 400,000 affected products must be recalled.

Amazon is a global e-commerce company with more than $575 billion in revenue. The company sells 12 million products directly, and more than 4.5 billion products through third-party sellers that use the “Fulfilled by Amazon” program.

The “Fulfilled by Amazon” program allows third-party sellers to store products in Amazon’s warehouse and collect payment. Amazon then packs and delivers the orders to customers. The company also handles returns and charges sellers a fee of 6–45% of the item price.

In 2021, an Administrative Law Judge ruled that Amazon was responsible for distributing the hazardous products. Amazon appealed, but the decision was upheld, leading to the latest order requiring the company to handle the recalls.

A previous order issued last July required Amazon to submit plans for removing the products and notifying consumers. The new order approves those plans and takes effect on January 26.

Amazon Recall Requirements

Amazon is now required to inform the public about dangerous or defective products by posting a recall notice on Amazon.com, directly notifying affected customers via email, and displaying recall details on each purchaser’s “Your Orders” page.

The new order also requires Amazon to provide one round of recall notices to “Fulfilled by Amazon” sellers who sold the products. The company is also responsible for issuing a full refund to consumers who submit proof they destroyed or disposed of the recalled product.

Additionally, the company must maintain the recall releases on the “Recalls and Product Safety Alerts” page on Amazon.com for five years. The retail giant must also submit monthly progress reports for five years and maintain records of the recall actions for the same amount of time.

Consumers can get more information at Amazon.com and CPSC.gov once the Order goes into effect on January 26.