- Amazon.com Inc (NASDAQ:AMZN) agreed to compensate customers affected by dangerous products sold by third-party sellers in its store, the company wrote in a blog.
- Amazon will reimburse customers for personal injury or property damage on claims up to $1,000 from Sep. 1, representing over 80% of the cases.
- Third-party sellers account for 50% of the products sold on Amazon, the Financial Times reported.
- Amazon was prosecuted in July by the U.S. Consumer Product Safety Commission for allegedly selling hazardous products. Amazon reportedly removed the majority of the products in question. Amazon assured regarding appropriate claim analysis.
- Amazon could also compensate shoppers for amounts exceeding $1,000. Earlier this year, Amazon tried to justify its inability to guarantee the safety of the products sold through its marketplace in Texas’ highest court.
- However, judges in California have ruled that Amazon could be held potentially liable for third-party sales, akin to a bricks-and-mortar retailer.
- Price Action: AMZN shares closed higher by 0.10% at $3,320.68 on Tuesday.
- Photo by Hello I’m Nik on Unsplash
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