Over the last few years, the number of products being sold by third-party sellers on Amazon has been rising. In fact, over 50% of the products are sold by third parties.
However, some customers have raised concerns over fake or dangerous products. As the number of third-party products increases, it’s becoming harder to hold the company responsible.
Now, Amazon has announced that it will pay compensation to customers that suffer injury or damages sold by third-party sellers on its platform.
This will start from September 1st, 2021, and claims will be limited to a maximum of $1,000. Additionally, Amazon will not admit liability for any of the claims.
In recent years, Amazon has faced many lawsuits to hold the digital giant responsible for damages and injuries caused by small businesses using its platform.
This new policy is intended to address these complaints. Up to now, Amazon has maintained that the third-party sellers are responsible, and the courts have mostly ruled in their favor.
Amazon’s third-party marketplace has been under scrutiny for some time and has been accused of allowing counterfeit and unsafe products.
For example, a lawsuit was recently launched against seven individual sellers and two entities after they had been accused of selling fake GoPro camera accessories and infringing on GoPro’s trademarks, which is against the law.
The lawsuit claimed that nine defendants used GoPro’s registered trademarks without authorization “to deceive customers about the authenticity and origin of the products and create a false affiliation with GoPro.”
“When counterfeiters attempt to sell in our store, they not only violate the intellectual property rights of companies like GoPro, they also mislead consumers and harm Amazon’s reputation as a place to buy authentic goods,” said Kebharu Smith, director of Amazon’s Counterfeit Crimes Unit.
Along with the new claims policy, the company has also said it will start cracking down on fake products, as this violates the company’s policies and puts consumers at risk.