logo
Amazon Claims It Is Not Responsible for Some Hazardous Products It Has Sold

Amazon Claims It Is Not Responsible for Some Hazardous Products It Has Sold

Yahoo18-03-2025

PCMag editors select and review products independently. If you buy through affiliate links, we may earn commissions, which help support our testing.
Amazon is suing the US Consumer Product Safety Commission (CPSC) over the agency's order requiring the e-commerce giant to recall hazardous products sold to consumers on Amazon.com.
In the complaint filed in Maryland last week, Amazon argues that it was a logistics provider of the hazardous products in question and, therefore, isn't responsible for the recall. 'The Commission may issue recall orders to the manufacturers, distributors, and retailers of a product, but not to third-party logistics providers who store the product in their warehouses and transport it to customers,' Amazon says.
The case dates back to 2021. The CPSC sued Amazon for selling over 400,000 units of products that posed a substantial hazard under the Consumer Product Safety Act (CPSA). The products were sold between 2019 and 2021 and included faulty carbon monoxide (CO) detectors, hair dryers without electrocution protection, and children's sleepwear violating federal flammability standards.
Amazon later notified customers about the faulty products and blocked their sales. However, the CPSC took issue with two matters. One, the agency felt that Amazon 'downplayed the severity of the hazard by stating only that the product 'may' cause harm.' Two, the agency found that Amazon didn't provide a way to return the products or issue a full refund; instead, it only issued gift cards for Amazon credit.
Last year, Amazon argued before an administrative law Judge that 'it was not a distributor and bore no responsibility for the safety of the products sold under its Fulfilled by Amazon program.' The judge, however, rejected Amazon's argument, determined it is a 'distributor,' and ordered the company to 'develop and submit proposed plans to notify purchasers and the public about the product hazards, and to provide refunds or replacements for these products.'
As mentioned, Amazon now says it's only a logistics provider in this case since it does not manufacture, own, or sell the products sold via its Fulfilled by Amazon program. Additionally, Amazon argues that since CPSA grants the CPSC authority to issue recall orders only to manufacturers, distributors, or retailers, the agency cannot issue recall orders to the e-commerce giant.
'The Commission brought an administrative lawsuit only against Amazon to expand its authority over online marketplaces,' Amazon claims.
While Amazon continues to deny its legal responsibility in the case, consumer safety advocates argue otherwise.
'Instead of demonstrating its commitment to consumer safety, Amazon has fought the CPSC every step of the way for more than three years,' said William Wallace, director of safety advocacy for Consumer Reports. 'It's absurd to suggest that because a company hosts a marketplace online it should be exempt from sensible requirements that help get hazardous products out of people's homes and prevent them from being sold.'

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Reddit Sues Anthropic Over AI Training Breach
Reddit Sues Anthropic Over AI Training Breach

Yahoo

time31 minutes ago

  • Yahoo

Reddit Sues Anthropic Over AI Training Breach

Reddit (NYSE:RDDT) has filed a federal lawsuit against Anthropic, the Amazon (NASDAQ:AMZN)-backed creator of the Claude large language models, accusing the AI company of using Reddit's data without a license. The civil suit, reported by the Wall Street Journal, claims Anthropic trained its models on Reddit user content without permission and hit the platform's servers more than 100,000 times. According to the filing in California, Reddit attempted to negotiate a data licensing agreement with Anthropic but those discussions failed. Reddit has struck similar licensing deals with Google (NASDAQ:GOOG) and OpenAI. It argues that Anthropic knowingly used its platform to build AI products without securing the proper rights or user consent. The legal move comes shortly after Anthropic released new modelsClaude Opus 4 and Claude Sonnet 4aimed at advancing AI capabilities in coding, reasoning, and agent-based tasks. Shares of Reddit rose 7.5% in Wednesday afternoon trading following the announcement. This article first appeared on GuruFocus.

Amazon's delivery and logistics will get an AI boost
Amazon's delivery and logistics will get an AI boost

Yahoo

timean hour ago

  • Yahoo

Amazon's delivery and logistics will get an AI boost

By Greg Bensinger SAN FRANCISCO (Reuters) -Amazon wants customers to know that artificial intelligence is not just for writing college essays. In a series of announcements Wednesday, Amazon demonstrated how stockroom robots, delivery people and its sprawling warehouses will all benefit from a hefty dose of artificial intelligence, speeding packages to customer doorsteps. The company said it is forming a new group at its Lab126 device unit focused on creating warehouse robots that will perform multiple tasks when prompted, a significant advance over today's robots that typically are designed for a singular job. Using so-called agentic AI, these robots will be able to unload trailers and then retrieve parts for repairs, according to Amazon. 'We're creating systems that can hear, understand and act on natural language commands, turning warehouse robots into flexible, multi-talented assistants,' Amazon said in a statement, without providing details such as what the robots might look like or cost. Amazon described the advances ahead of a press event Wednesday at Lab126 in Sunnyvale, California, where it gathered robotics and logistics executives for demonstrations. Among the additional announcements are that Amazon is using generative AI to create more advanced maps for its delivery drivers, so that they can more efficiently deliver packages for the final few yards (metres) of their journeys. The specialized AI will provide Amazon fine detail on building shapes, as well as obstacles and anything else they may need to navigate a package drop-off. 'This innovation is making it easier for Amazon drivers to find the right delivery spot, especially in tricky places like big office complexes,' Amazon said. That technology could be critical to specialized eyeglasses Amazon is developing for delivery drivers that Reuters reported exclusively last year. The company hopes to outfit drivers with screen-embedded glasses that free their hands from GPS devices and give them turn by turn directions while driving, as well as while carrying packages at their destination. Finally, Amazon said it AI will help it more efficiently predict what products customers will need and where to improve its same day delivery operations. On a more basic level, it means that winter coats likely will not be stocked in Phoenix warehouses in summer though Amazon suggested that other factors the software will consider are price, convenience, relying on factors such as weather and sales events, like Prime Day. In its announcement, Amazon promised to minimize waste through less carbon emissions and traffic as the result of the new AI.

Analyst Comments on Amazon.com (AMZN) AI Capex: ‘I Would Not Count on a Slowdown'
Analyst Comments on Amazon.com (AMZN) AI Capex: ‘I Would Not Count on a Slowdown'

Yahoo

timean hour ago

  • Yahoo

Analyst Comments on Amazon.com (AMZN) AI Capex: ‘I Would Not Count on a Slowdown'

Eric Sheridan, Goldman Sachs Managing Director, said while talking to CNBC in a latest program that AI capex is not showing signs of slowdown. He mentioned spending guidance of Inc. (NASDAQ:AMZN), among other major tech companies: 'If you go look at across the largest companies, Amazon reiterated their capex guidance, Alphabet reiterated. These were very high growth rates that the market had to absorb in the front half of this year, and Meta actually raised their capex guidance for 2025. So the buildout of AI continues. I would not count on a slowdown in that looking out through the remainder of this year at a minimum.' A customer entering an internet retail store, illustrating the convenience of online shopping. Sands Capital Select Growth Strategy stated the following regarding Inc. (NASDAQ:AMZN) in its Q1 2025 investor letter: ' Inc. (NASDAQ:AMZN) is one of the largest ecommerce retailers and cloud infrastructure providers globally. Amazon reported solid quarterly results, in our view, with stable revenue growth and margin expansion in line with trends seen across the hyperscalers, including Meta. The company's 2025 capital expenditure guidance—exceeding $100 billion—was well above expectations, driven by intensifying investment in AI infrastructure. Notably, the stock ended the quarter trading at its lowest 12-month forward earnings multiple since 2008.' READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store