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Family Sues Amazon After Counterfeit Hoverboard Catches Fire, Destroys Home (wtsp.com)

Three weeks after unboxing a hoverboard, it burst into flames. But is Amazon partly to blame? tripleevenfall quotes The Tennessean: A Nashville family whose $1 million home was destroyed earlier this year in a fire caused by a hoverboard toy is suing Amazon saying the retail giant knowingly sold a dangerous product... The lawsuit says the seller of the hoverboard listed online, "W-Deals," is a sham organization that is registered to an apartment in New York City that has not responded to requests from lawyers in the case. It alleges the family was sold a counterfeit product from China instead of a brand with a Samsung lithium ion battery they believed they were buying from Amazon . It says Tennessee product liability law holds a seller responsible if the manufacturer cannot be found.

39 of 253 comments (clear)

  1. Genuine Samsung Battery by Anonymous Coward · · Score: 5, Funny

    I'm not sure that's really an improvement...??

    1. Re:Genuine Samsung Battery by RuffMasterD · · Score: 4, Funny

      Pfft. I don't want some cheap knock-off Chinese explosion. I have standards. Genuine Samsung batteries burn hotter for longer thanks to rare earth minerals.

      --
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  2. Except by Anonymous Coward · · Score: 2, Insightful

    Amazon wasn't the seller. Their opening of their platform to 3rd parties is what almost made me stop using them. If I want to buy from Joe Schmoe there is ebay. Amazon should not allow 3rd party sellers, plain and simple

    1. Re:Except by 93+Escort+Wagon · · Score: 5, Insightful

      Since Amazon opened their platform to third parties, Amazon is almost certainly providing "material assistance" (or whatever the proper legal phrase is) to those sellers. Without Amazon, it is far less likely buyers would've had access to that seller.

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    2. Re:Except by sexconker · · Score: 5, Informative

      Amazon lists it on their storefront. Amazon handles the financial transaction. Amazon profits off of each sale. Amazon often ships the thing out to you even if it's a third party. Amazon is supposed to vet the 3rd parties they work with. Amazon is on the hook.

    3. Re:Except by AK+Marc · · Score: 4, Informative
      The grocery store wasn't the seller. Nestle was the seller of the chocolate bar I ate.

      Nope, law almost universally agrees, the person you give the money to in order to get the item is the seller. Note, you don't pay eBay for your wins (not including any 3rd party payment services owned by eBay). eBay connects you with a seller, not doesn't directly take payment and dispatch the item, as Amazon (and you supermarket) does.

      Amazon should not allow 3rd party sellers, plain and simple

      Not without some vetting, or for limited products (like self-published books).

    4. Re:Except by Lumpy · · Score: 2

      Yes. I am guessing you never bought an Amazon Alexia... She will threaten to kill you if you dont buy things.

      --
      Do not look at laser with remaining good eye.
    5. Re:Except by guruevi · · Score: 5, Insightful

      Depends on who is on the bill of sale. If I see "Amazon.com" on my credit card statement, Amazon sold it to me. In Craigslist case, CL is not selling anything through their site, they're just listing. E-Bay is a bidding site that also makes it clear who you are actually purchasing from but depending on how they handle the sales, E-Bay COULD be on the hook. Amazon will handle all sales for sellers including warehousing and shipping, Amazon is a store just as much as Wal-Mart is.

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    6. Re:Except by Anonymous Coward · · Score: 2, Insightful

      The big problem is that you may attempt to buy the item "Sold by Amazon" and wind up with a 3rd party seller's item anyway. To save warehouse space, Amazon has started commingling their own direct fulfillment items in the same bins as 3rd party sellers' products. When you place an order, the order picker (or a robot) just grabs one from the bin and ships it to you. Whether you get a legitimate item sourced directly by Amazon, or some knockoff piece of junk supplied by a 3rd party, is luck of the draw.

      I think this has been going on in one form or another for some time. It seems that if Amazon is out of an item, and there's another brand/third party item they think is equivalent, they'll ship you one of those instead. Nicely, if the other item is half the price, they don't adjust your bill. Wouldn't want to confuse you. ;-)

      It's sad how far we seem to have regressed when it comes to consumer protection. Any more, I assume the really large retailers (Amazon, big box home centers, etc) are cheating me. If I'm buying something and I don't mind cheap and cheesy (it happens), I'll buy from them for the convenience and sometimes lower price. Otherwise, I'll try to find a local business to buy from, or a smaller online retailer who seems large enough to be trustworthy but not so large they can afford to screw their customers.

      I'm a cynical bastard by nature, but I was surprised at how much higher quality the things I buy often turn out to be, often even within the same brand (not sure what's behind that, but it's happened several times).

      Caveat emptor indeed.

    7. Re:Except by nine-times · · Score: 4, Insightful

      Is eBay also supposed to vet 3rd parties? What about Craigslist?

      Those services make no pretense of being the seller. In some cases, Amazon redirects you to another site, or makes it clear that Amazon themselves don't have the product and offer you a list of 3rd party sellers' Amazon storefront. In those cases, you can argue that Amazon has reduced responsibility. Sometimes the page lists a 3rd party as being the seller, but if you don't pay attention to the small print, you would think you were just buying from Amazon. At other times it says that the order is being fulfilled by Amazon, though it's not clear whether they're buying products directly from the manufacturer or there's some 3rd party in the supply chain.

      Either way, if I can't have confidence that the products I'm buying on Amazon are genuine, I'm going to buy a lot fewer things on Amazon. I would suspect that I'm not alone.

    8. Re:Except by AK+Marc · · Score: 4, Interesting

      You assume vetting is just examining dedicated demo product. These days, making sure they are sueable is more likely useful. Amazon 3rd party sellers lets the same person set up 1000 shell identities and sell the same fraudulent item from whichever sell isn't shut down yet. A physical address (verfiied), a business license (verified), and business insurance (verified) wouldn't be too hard for a seller to come up with, and Amazon to verify, and would eliminate 99.44% of the scammers.

      So what stops them from scamming Amazon buyers? Amazon has your home address, and the desire to sue you if you defraud its customers. They can't stop someone willing to use their home address to commit mail fraud from. But they can certainly aid in the prosecution of them, which they can't do now.

    9. Re:Except by Luthair · · Score: 2

      Don't forget that ebay owns Paypal and some auctions only accept payment through Paypal. Seems like that scenario makes ebay identical to amazon.

    10. Re:Except by harperska · · Score: 3, Insightful

      It depends on if Amazon was acting as the Merchant of Record or the Seller of Record. The MoR is a 3rd party entity who is financially liable for the transaction, allowing the original retailer to sell in multiple regions without having to worry about tax and currency issues. The MoR assumes the financial risk for chargebacks etc., but not liability for the product itself.

      The Seller of Record is a 3rd party that actually owns the complete transaction. In effect, the original retailer sells the product to the SoR, who then resells it to the buyer. The SoR therefore takes complete legal ownership and liability of the whole transaction.

    11. Re:Except by hairyfeet · · Score: 3, Insightful

      Not to mention they are allowing tons and tons of fakes and shoddy merchandise to be sold with pretty much ZERO vetting. I have seen in just my shopping there fake flash cards and sticks, shoddily rebuilt laptop batteries being sold as new product, fake mikes/guitars/amps, products that could easily not just rip someone off but seriously maim or kill. You look and there are dozens of complaints and...Amazon don't do shit apparently.

      So I'm sorry fanboys but I like Amazon, have bought thousands of dollars in gear from Amazon (NEVER from their third parties) and the computer I'm typing this on was 100% built from parts I got from them but since they have allowed third parties? They have become a real minefield with tons of shoddy shit that I doubt even eBay would allow. I can easily see how someone who didn't know that you can't trust the fact that you are on a site that clearly says "Amazon" does NOT mean you are actually buying from Amazon could get a seriously dangerous product thinking they were buying the real deal. Hell you can't even go by price because tons of them are trying to pass the fakes off as real and thus charge real prices for them!

      So this is 100% Amazon's fault. They opened the floodgates to the scammers, even allow the scammers to use their warehouses and distribution, and get a cut of every fake and shoddy product sold, so I don't see how they can argue they are not responsible when they are the ones that allowed the scammers to flourish and aided them in every step along the way.

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  3. Sue for what exactly? by JoeyRox · · Score: 4, Insightful

    They likely have home insurance and will be reimbursed. If anyone has a right to sue Amazon it will be the insurance company, to reclaim the money they paid out to the homeowners.

    1. Re:Sue for what exactly? by Registered+Coward+v2 · · Score: 2, Informative

      They likely have home insurance and will be reimbursed. If anyone has a right to sue Amazon it will be the insurance company, to reclaim the money they paid out to the homeowners.

      It is possible their insurance did not cover the total loss as well as any damages bryond monetary.

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      I'm a consultant - I convert gibberish into cash-flow.
    2. Re:Sue for what exactly? by Zocalo · · Score: 5, Funny

      For damages, sure, but maybe they wanted the genuine *Samsung* battery so they could burn their entire neighbourhood to the ground, but instead got a cheap knock-off and only their house got toasted and are suing for misrepresentation?

      Could be worse, at least they didn't get the oblig. bobcat...

      --
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    3. Re:Sue for what exactly? by bloodhawk · · Score: 2, Informative

      When you win a lawsuit of this nature the first people to get paid back is the insurance company. My sister recently won a lawsuit against the scumbag incompetent doctor that was treating her. So she got around 800k, first thing required was 600k went to pay back what medical insurance had paid out.

  4. Re:If Amazon loses... by Anonymous Coward · · Score: 5, Insightful

    I'd hope they drop out of the 3rd party seller program. I've made it a point to not buy from 3rd party sellers after problems dealing with them in the past.

  5. It never does by rsilvergun · · Score: 5, Informative

    Insurance companies fight you tooth and nail, often for years. Especially on a big payout like a burnt down house. Every year they delay inflation bites into the payout and you get more desperate to take whatever they'll give.

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    1. Re:It never does by AK+Marc · · Score: 3, Informative

      My insurance covers temporary relocation, and has limits on contents. So if I wanted to relocate 1 year for the house to be torn down and re-built right, I'd have to pay for 9 months or so of accommodation. And the contents would be replaced to the insurance company's satisfaction, not mine. And I'd be paying for the deductible, and possibly have other limits on the policy.

      Plus, if I sue, I can recover the sentimental value of the items I have that were hand crafted by my great grandparents back in the day where if you wanted to sit down, you made a chair, or sat on the ground, a feeling known in the modern era by those who must build the IKEA chair if they wish to sit. Plus, everyone sues for "mental harm", hoping to get a $300M judgment.

  6. China by rossz · · Score: 5, Insightful

    China has a long history of selling dangerous products. From poisonous pet food to exploding electronics. When confronted, the Chinese government's response is "what a shame, we'll do something". The "something" is to rename the company and do it all over again.

    Why the fuck does China have most favored nation trade status?

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    1. Re:China by Rick+Zeman · · Score: 2, Insightful

      China has a long history of selling dangerous products. From poisonous pet food to exploding electronics. When confronted, the Chinese government's response is "what a shame, we'll do something". The "something" is to rename the company and do it all over again.

      Why the fuck does China have most favored nation trade status?

      Because they've bought off a whole hell of a lot of people, but using cheap Chinese shit is good for the US company's short-term bottom line...which is all today's executives look at because that's what their bonuses and stock options are tied to.

    2. Re:China by bloodhawk · · Score: 4, Insightful

      China has a long history of selling dangerous products. From poisonous pet food to exploding electronics. When confronted, the Chinese government's response is "what a shame, we'll do something". The "something" is to rename the company and do it all over again.

      Why the fuck does China have most favored nation trade status?

      That is hardly an exclusive problem to china, china just happens to make the vast majority of products nowadays. You don't have to look far to find cars that catch fire or mass tire recalls on faulty products, US contaminated beef or chicken etc etc. They do seem particularly lax on punishment etc but for the scale of it, it doesn't seem any worse than what most companies do the world over where cost and profit are king.

    3. Re:China by ADRA · · Score: 2, Insightful

      You don't seem to complain about all the other products you use daily which were all/mostly manufactured in part in China. Obviously there's shoddy shit sold by all sorts of people, but you typically won't buy it unless you have confidence that said shit legitimate enough to assuage your risks. IPhones are made in China. But they're sold by Apple. People like and trust Apple, so Apple has the incentive to make damn sure that their products are high enough quality to match their perception.

      The product was sold through Amazon. If you ask the vast majority of Amazon users, they'll say when you buy from Amazon.com, you're buying Amazon. It is only in Amazon's best interest to tighten up and compensate buyers for potential losses due to shoddy products sold through their service. Otherwise, it'll end up much like Ebay has: the shit hole of fraud and bogus products on the internet. I can't name a single friend who still uses EBay after many years of use. Too much BS.

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  7. Re:If Amazon loses... by Joce640k · · Score: 2

    ...and even if they do, what's to stop a shady seller from shipping something different that they sent to Amazon for testing/validation?

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    No sig today...
  8. Re:Leave it to rich assholes.... by ScentCone · · Score: 2, Informative

    What makes you think they didn't have home owner's insurance? What makes you think that the policy - like so many that most people have - would truly make them whole, financially? Most policies don't. And none of them will replace family heirlooms, in terms of their sentimental value, etc.

    That said, Amazon didn't make this batter, and makes the third party vendor responsible for the assertions they make about product suitability and safety. Now, if Amazon KNEW that the vendor was lying, and Amazon didn't give them the heave as they do to thousands of vendors, regularly, that's another matter. But Amazon's not responsible for a third party misrepresenting things, just like they're not responsible for a death when a criminal uses a steak knife from Amazon to kill somebody.

    --
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  9. Re:If Amazon loses... by Osgeld · · Score: 2

    they have at least 2 fairly large distribution centers in TN

  10. Highlights a couple real problems with Amazon by Solandri · · Score: 5, Interesting

    1) They sneak in 3rd party resellers. Lots of other sites allow 3rd party resellers - Newegg, Sears (almost entirely 3rd party), eBay, etc. For the most part, they make it damn obvious you're buying from a 3rd party, not from the site itself. Most of them even let you exclude 3rd party sellers with a single click. Amazon shows the seller name in easily-missed text in the middle of the product listing - very easy to miss. It's easier if you have Prime, as many 3rd parties don't support Prime. So you'll search for a product, click on one listed with Prime shipping, and when you go to put it in your cart you notice it doesn't have Prime shipping because Amazon has silently substituted a 3rd party seller. And I haven't been able to find an option on Amazon to exclude 3rd parties.

    2) Contamination of their supply chain. This is based on hearsay, although my personal experience seems to support it. Have you noticed the "Sold by xxx and shipped by Amazon" tags on some products? The way that works is the 3rd party seller sends their inventory to Amazon. Amazon stores it in their warehouse, and when you buy from that seller, Amazon ships it for them. The problem is Amazon seems to co-mingle 3rd party inventory with their own. So if you order a SD card, Amazon's computers grab the nearest available SD card whether it be from Amazon's inventory or a 3rd party's inventory. Your go through the effort of making sure you're buying the SD card with Amazon as the seller to try to get a genuine one, and you still end up getting a fake sent to Amazon by ConterfeitsRUs. I've basically given up buying commonly counterfeited items like flash drives from Amazon. I pay the extra to get them from a local retailer whose supply chain hasn't been contaminated this way.

    1. Re:Highlights a couple real problems with Amazon by Anonymous Coward · · Score: 2, Interesting

      i fucking hate the third party sellers on a merchant's web site: amazon, walmart, newegg, etc. I DON'T WANT TO BUY FROM THEM. EVER. if i'm on *amazon* or *newegg* or *walmart* - i want to buy from *amazon*, *newegg* and *walmart*. that's why i went to the damn site in the first place.

      if i wanted to buy from some shady chinese guy or roll the dice on whether or not i get a "real" or "fake" product, i would have gone to ebay, for fucks' sake.

  11. i agree with this lawsuit because by FudRucker · · Score: 2

    i have seen some inferior imported products that are normally found on ebay creep their way in to amazon, what happened to the FTC making sure products are safe? when something like this family's house burning down goes ignored or thrown out of court it sets a bad precident that encourages more faulty products to be sold in the USA, and if you dont agree i bet you will when it is your property thats destroyed because of poor quality products self destructing and taking out your entire home

    --
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  12. Re:No sprinklers? by Anonymous Coward · · Score: 2, Insightful

    I haven't been in many million dollar homes, but I don't think I've ever seen a house with a sprinkler system (not counting for the lawn).

  13. Re:If Amazon loses... by fnj · · Score: 2

    If they don't validate their 3rd party partners, how are they any different from Ebay?

    Only in that they POSE as a store, not an agent. False advertising.

  14. Re:No sprinklers? by ArchieBunker · · Score: 2

    So they should have to invest $20k just to protect themselves from faulty products? I've never seen a home with sprinklers.

    --
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  15. Re:No sprinklers? by hawguy · · Score: 5, Insightful

    So they should have to invest $20k just to protect themselves from faulty products? I've never seen a home with sprinklers.

    Not just faulty consumer products, but cooking fires (most common cause of home fires), faulty heating equipment (tied with cooking fires for fire related fatalities), electrical and lighting faults, intentionally set fires, and smoking related fires. If you're buying a million dollar 4,000 square foot house, why wouldn't you make a safety improvement that's shown to save lives (and can safe the structure itself, but that's a lesser concern). If you care about your family's safety, go above and beyond fire codes. I bet the granite countertops in the kitchen in that house cost more than it would have cost to put in sprinklers.

    I've seen many homes with fire sprinklers, my state requires them in new construction and I've known people that retrofitted them (usually with a new home purchase in combination with electrical upgrades since the sprinkler system itself is only about half the cost of the retrofit, the other half is drywall repairs).

    This family didn't even have linked smoke detectors throughout the house, which led to a delay in evacuation:

    Both children initially confused the sounds of the blaze for someone breaking into the home. They thought they heard arguing, according to their parents, but were confused by the sounds of their pets and the vocal warnings of the downstairs fire alarms.

    In my home every smoke detector is linked (through hardwire and/or RF links) and every one alerts at the same time -- everyone in the family knows that if they hear them go off to leave the house *immediately*. 2nd floor bedrooms both have escape ladders. Oh, and the house has a sprinkler system, which was one of the things I looked for when buying. And yes, we do yearly fire drills.

    It may seem like over the top paranoia, but my brother lost his house to a fire caused by a furnace fault, he and his family all got out (he and his wife had to go out the 2nd floor window, fortunately the kids rooms were on the first floor and they escaped through a window), but the speed with which it went up made me realize that it's true what they say about fires - every second counts. By the time the fire department got there (about 7 minutes after they were called), the home was fully engulfed and was a total loss. Spending time debating whether or not that sound you hear is really the smoke detector can make a significant difference in getting out safely. Fire is the 3rd leading cause of death in the home (after falls and poisoning).

  16. Huh? by dohzer · · Score: 2

    I had to look up what they were talking about in the article. It's not a hoverboard (obviously). It's one of those sideways-scooter balancey-board thingies that kids have these days.
    Not sure why they are talking about a hoverboard.

  17. Amazon = eBay by XSportSeeker · · Score: 4, Interesting

    Amazon = eBay, only sometimes even worse.

    This is what I say to everyone. I don't even bother trying to explain anymore, for most people it's just better to understand Amazon that way. Specially for people who never bought there and still have this image that everything sold at Amazon comes directly from Amazon and are all guaranteed by the company.

    Of course, if Amazon wanted to stay away from all these shitty products, they would've created the Marketplace as a separate thing. But it's obvious that they wanted people not to notice the difference. So yeah, it'll be interesting to see the results of this lawsuit. The difference between Amazon and eBay is that Amazon used to be it's own store, and it still sells their own products. eBay always was about providing a venue for people to make business. It's well understood that you are not buying anything directly from eBay.

    And Amazon also does a shit job of letting costumers know about the reputation and quality of products sold by their shitty selected vendors. Selected as in who pays a bigger part of their scam, I imagine.

    Here's the funny thing: in the past 4 years or so that I've been shopping on eBay, I've never had a single problem with the products, including external batteries, lots of electronics with LiPo batteries in them, and whatnot. And just in case it happens, I also got a fireproof pouch from eBay to keep stuff in it. xD

    Amazon, on the other hand, I had problems with fake SD cards, they now have implemented some weird system of pre-charging import taxes that are often waaay above the actual value. Sometimes they return a small percentage of it (like 3 months after the fact), often times they simply don't. And most of the products still cannot be sent to my country anyways, so there's that.

    The only advantage Amazon offers to people living in my country is that their products arrive generally faster than stuff bought from chinese stores on eBay... but that's only because they use companies like Fedex, UPS, DHL and the like that are all basically running a scam here in Brazil. They will rip you off here when it comes to charging tax, extra costs, and storage fees you never asked for. They basically hold your products hostage. On average, I'll pay 1.5x to 2x the tax costs, which usually sums up to 110%+ the product value plus shipping, when a product comes from Amazon. It arrives in a week or so. From eBay, it comes via regular mail, so I pay whatever the government actually charges, which ranges from 60% to 100%. It can take anywhere from a month to 6 months because it depends on the goodwill of governmental agencies, but it gets here, and there's no extra bullshit charges.

    And this is why I haven't been buying anything from Amazon. The last thing they had going for them was reliability for countries like mine.

    Of course, Amazon couldn't care less about the little money coming from countries like Brazil... it's cheap change for them and they have demonstrated it well enough with their horrible policies regarding overseas shipping. But yeah, the way Amazon incorporated marketplace into their main store and started selling all these products that seem to have an even worse quality control than eBay, it's quite telling.

  18. They are not hoverboards by Stan92057 · · Score: 5, Informative

    They are not hoverboards they do not hover what so ever that ride on wheels firmly planted on the ground. Call them motorized skateboards, that more closer to what they actually are.

    --
    Jack of all trades,master of none
  19. Re:Seller versus platform by bingoUV · · Score: 2

    You might be right, but Amazon calls W-Deals a seller. That doesn't mean law will also call W-Deals a seller for this particular transaction.

    It is crudely like Amazon calls your account number Prime, but a mathematician when provided with the number might find many prime factors of the account number and refuse to accept the account number as prime. A word has different meanings in different contexts, and especially for marketing many words are misused e.g. prime, privileged, Gold/Silver/Platinum, "Free", "Unlimited".

    --
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