CALIFORNIA: A federal appeals court on Wednesday ruled against Amazon.com Inc in a case that could expose the online retailer to lawsuits from customers who buy defective products from third-party vendors through its website.
Numerous other courts, including two federal appeals courts, have held that Amazon cannot be held liable as a seller of products from third-party vendors. The new ruling from the 3rd US Circuit Court of Appeals in Philadelphia, which reversed a lower court decision, appeared to be the first to buck that trend.
Amazon did not immediately respond to a request for comment.
In addition to selling its own inventory, Amazon allows third-party vendors to list products for sale on its website. Such vendors may store their products in Amazon’s warehouses or ship them directly to customers.
Amazon earned about $11 billion in revenue from services it provided to third-party sellers for the quarter ended in March. About half of the items sold on Amazon are from third-party companies, database firm Statista reported. — Reuters
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