Amazon.com who are already under siege from various Governments from around the world, is now facing a new challenge with the introduction of a new US government order that could make it responsible for the safety of goods that it sells for outside vendors on its website.
The new measures will also apply to products shipped for third party partners via the use of Amazon logistics.
According to Bloomberg the U.S. Consumer Product Safety Commission is preparing an order that could classify Amazon’s online retail business as a distributor of good.
The move brings Amazon into line with traditional retailers who can face legal action especially when a product is recalled by the ACCC.
Amazon accounts for nearly 40% of all e-commerce in the U.S., according to eMarketer, a research firm. The business is also under pressure from Chinese e commerce platform Temu.
Amazon has fought the distributor designation because of the nature of its online marketplace.
The company sells some items from its own inventory, as bricks-and-mortar stores do, but more than 60% of sales on Amazon.com are by outside vendors, known as third-party sellers including several distributors from Australia who are trying to grow share in the USA and Europe.
“Safety is important to Amazon, and we want customers to shop with confidence in our store,” said an Amazon spokesman.
The company takes steps to prevent suspicious or noncompliant products from being listed, monitors products for safety concerns, and removes products when appropriate and notifies the companies and government agencies involved, a spokesperson for the Company said.
