A federal appeals court on Wednesday ruled against Amazon.com Inc in a case that...
) 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 U.S. Circuit Court of Appeals in Philadelphia, which reversed a lower court decision, appeared to be the first to buck that trend.In addition to selling its own inventory, Amazon allows third-party vendors to list products for sale on its website.
Liability for defective products is generally governed by state law, and Wednesday’s decision is based on the laws of Pennsylvania, where the customer, Heather Oberdorf, lives. Oberdorf sued Amazon in 2016 in a federal court in Pennsylvania, saying she was blinded in one eye when a retractable dog leash she bought through the company’s website from a third-party vendor snapped and recoiled, hitting her in the face.
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