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Judge Rules Amazon Isn't Liable For Damages Caused By a Hoverboard It Sold (cnbc.com)

Earlier this week, a judge in Tennessee ruled that Amazon isn't liable for damages caused by a hoverboard that spontaneously exploded and burned down a family's house, even though they bought it on Amazon's website. "The plaintiff claimed that Amazon didn't properly warn her about the dangers they knew existed with the product, but the judge didn't agree," reports CNBC. At the time, hoverboards were all the rage; Amazon sold almost 250,000 of them over a 30-day period. The plaintiff claims the company had an obligation to warn customers properly about the dangers it knew existed. "[The plaintiff] bought the hoverboard on Amazon, the receipt came from Amazon, the box had an Amazon label and all the money was in Amazon's hands," adds CNBC. "[The plaintiff] has been unable to find the Chinese manufacturer of the device." From the report: It's the latest legal victory for Amazon, which has for years fended off litigation related to product quality and safety by arguing that, for a big and growing part of its business, it's just a marketplace. There are buyers on one end and sellers on the other -- the argument goes -- and Amazon connects them through a popular portal, facilitating the transaction with a sophisticated logistics system. The courts are reinforcing the power of Amazon's business model as the ultimate middleman. But for American consumers, there's growing cause for concern. [...] But if Amazon isn't liable when faulty products sold through its website cause personal injuries and property damage, customers are often left with no recourse. That's because it's frequently impossible for consumers to figure out who manufactured the defective product and hold that party responsible.

22 of 176 comments (clear)

  1. Amazon should be responsible by drinkypoo · · Score: 5, Insightful

    "[The plaintiff] has been unable to find the Chinese manufacturer of the device."

    If Amazon can't put the buyer in contact with the company which produced the device, then they should be liable. They sold it, they should be responsible for it. Frankly, even if they can put the person in contact, they should still be responsible, and recovering damages from the supplier should be their problem.

    We have consumer protection laws for a reason, and that reason is that not having them costs everyone money. This decision simply lets Amazon push the cost of doing business off onto the court system, which means We The People have to pay for their cost of doing business.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    1. Re:Amazon should be responsible by goombah99 · · Score: 4, Insightful

      agree. amazon is acting like Uber, falsly saying the sellers are (the equivalent) to Uber's fiction of "contractors" not employees. Hoepfully california or another big state can fix this.

      --
      Some drink at the fountain of knowledge. Others just gargle.
    2. Re:Amazon should be responsible by PolygamousRanchKid+ · · Score: 5, Insightful

      How do classic brick & mortar retailers deal with this . . . ?

      If I march into Wallgreens and buy a bottle of vitamins, and the vitamins turn out to be a Dead Russian cocktail of ricin, polonium and nerve gas . . . is Wallgreens on the hook . . . ? Or can they say,

      "We bought a large discount lot of them on the Darknet, and don't know how to contact the seller. But the seller is liable, not us".

      --
      Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
    3. Re:Amazon should be responsible by drinkypoo · · Score: 5, Insightful

      Not sure I agree with THAT statement. In those cases, they would only be responsible for replacement or refund of what they sold.

      Amazon completed the sale, collected payment, and made a profit. They ARE the seller. The person they refer to as the seller on their site is actually a supplier. This is wholly different from the example of a flea market, where people are charged for space rent and then they really are the seller; they collect payment, and complete the sale.

      Amazon is the seller, they sold the item, therefore they should be responsible for the damages — which in this case dramatically exceeds the replacement/refund value of the product which they sold.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    4. Re: Amazon should be responsible by Anonymous Coward · · Score: 2, Funny

      Sure.

      What do you think Hillary would have done?

      Got drunk, passed out, and had the press cover it up by claiming she's a "champion napper".

    5. Re:Amazon should be responsible by gnick · · Score: 4, Insightful

      IANAL, but it seems to me that Walgreen's would be responsible for their brand of vitamin but not the others. It would be responsible of them to play their part in a recall, but I don't know why they'd be on the hook for a QC fail at Dead Russian brand vitamins.

      --
      He's getting rather old, but he's a good mouse.
    6. Re:Amazon should be responsible by grumbel · · Score: 2

      What makes this even more scummy is that Amazon is doing all they can to blur the lines between third party sellers and Amazon purchases. The marketplace is not a separate subsection of Amazon, it's completely integrated into the main shop and they will show you products sold by them and products sold by third parties interchangeably. To complicate things even further Amazon will stock some third party products in their own warehouses, so everything is handled by Amazon, except the liability. As a customer all you get is a line in tiny font saying "Sold by SomeCompany" to warn you that you are buying from some Chinese company that doesn't care about safety regulation, but unless you already had a few bad experiences with third party sellers that line is very easy to overlook.

    7. Re:Amazon should be responsible by angel'o'sphere · · Score: 2

      You seem not to use Amazon.
      In this case Amazon is the broker, handeling the order, the payment and perhaps the shipping.
      The seller is from whom ever the plaintiffs bought the ifems.
      Can't be so hard to grasp.

      --
      Cost free eBook I read (by iBook/Kobo/Amazon/ObookO/Gutenberg etc.): "The Green Odyssey" by Philip Jose Farmer.
    8. Re:Amazon should be responsible by Cederic · · Score: 2

      Not sure about the US but in the UK you go back to Home Depot, as they've broken consumer protection laws.

      I believe it's the same in the US.

      You don't have a relationship with Duracell. You didn't make an agreement with them regarding the quality or fitness for purpose of the product you bought. You didn't buy it from them.

      But hey, you clearly enjoy calling people 'DUMBASS' so don't let me prevent your complete absence of self awareness letting you have fun.

    9. Re:Amazon should be responsible by clovis · · Score: 4, Informative

      Why do so many people think that basic consumer protection is some sort of onerous burden?

      Because it is. Every regulation tells us what we can't do or what we have to do in order to do business. When you add them up, they're onerous and they prevent people from getting what they want.

      Adults aren't little children. We're capable of making decisions based on what the risks are. If you're worried about cheap Chinese products on Amazon, then there is a simple solution, pay attention to the listed Manufacturer and don't buy one! Why the need to use force to prevent the other 250,000 people who want to from buying one?

      We're capable of making decisions based on what the risks are.

      And that's wrong. We can only make decisions based on the information that we have. If we don't have the data regarding risks, then we don't know what the risks are, then we cannot make a decision based on the risks.

      The issue here isn't that the board caught fire, but rather that in this case Amazon knew they caught fire, but did not provide the information to the buyer.
      From the embedded link:
      "Fox's case was filled with testimony and evidence illustrating that Amazon execs were concerned about the hoverboards sold on its site. One executive deposed in the case said he'd removed a hoverboard from his house before Christmas after hearing about "potential issues."

      I have to agree with the plaintiff. If a store sells a product that they know is defective or dangerous, then they are obligated to clearly warn the buyer, and if possible, warn the previous purchasers. It is perfectly OK to sell the dangerous products that are sold to the public everyday, but they are required to carry warnings.

    10. Re: Amazon should be responsible by Anonymous Coward · · Score: 2, Informative

      You go into Home Depot and buy batteries. They have some famous logo on them which may or may not be faked. The batteries catch fire and burn your house down.

      You try to find out where Home Depot got the batteries from. They tell you they only have an email address from some supplier overseas. They have total and complete records of all their interactions with YOU but of course can't be bothered to find out if their mythical stock of batteries is real or fake, and they don't have records of where they came from.

      Get the point? Dumbass.

    11. Re:Amazon should be responsible by Joce640k · · Score: 2

      Jesus fucking Christ can we have one conversation without some asswipe like you dragging Donald Trump into this?

      The ONE time it was justified bringing him in and you complain?

      He's spent a large part of his presidency removing pesky liability laws that hold back great American business like Amazon.

      --
      No sig today...
  2. Not Amazon by inking · · Score: 2

    I do not think the issue is Amazon in this case: it is Chinese sellers and customer protection in a globalized world in general.

    I had once bought a game key on Ebay and the Chinese seller refused to send it to me without me sending him a copy of my ID for age verification. Understandably, the last thing I want to do is sending some guy in China is the information on my ID. I asked for a refund and the seller refused, copy-pasting the same message about how I should give him a good review first. I contacted Ebay, then PayPal, none of whom wanted to help me with my issue despite the seller being marked with all of Ebay’s trusted symbols. The very young-sounding customer support person actually said that I “have the reigns in my hands and should threaten the seller with bad reviews until he refunds me”. I then reported the seller for “review extortion”, which is an offense under Ebay’s own terms of conduct, Ebay confirmed that review extortion had taken place and refused to help me with my refund.

    At this point, I gave the Chinese bastard a snarky yet positively-marked review and he returned my money. I am confident that there is a library worth of similar stories that never made it into the court room due to being less high-profile. All of these companies are utter trash when it comes to third party seller customer protection.

    1. Re:Not Amazon by drinkypoo · · Score: 5, Insightful

      I do not think the issue is Amazon in this case: it is Chinese sellers and customer protection in a globalized world in general.

      Amazon is deliberately enabling these sellers, with full knowledge that they will defraud customers. Then they are failing to maintain contact information on them that would permit customers to attempt to recoup their losses. They are willfully contributing to this illegal activity, and making literally zero effort to prevent it, which is why they should be held liable.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  3. Welcome to the Modern World by mschwanke97402 · · Score: 3, Insightful

    No one is responsible for anything, at any time, anywhere. No rules, no regulations, anything goes. You all remember voting for this, right?

    1. Re:Welcome to the Modern World by mschwanke97402 · · Score: 2

      Now now, you can do better than that, can't you? We obviously didn't all vote for this on either the basis that Trump "lost" the popular vote, or that voter turnout was historically low.

      Did I mention Trump? Or the last election? I did not.

      However, one party has been preaching the mantra of "government bad, regulations bad" for decades. They are regularly elected to office. We end up toothless regulations and regulatory agencies without funding to actually do much of anything.

  4. Where's the disconnect? by sacrilicious · · Score: 2
    It should be the case that:
    • 1) There should be a governmental regulatory agency in place which constantly determines whether a given product can be sold in the US, based on its safety, and IF it can be sold whether the seller is required to warn of any particular or general dangers.
    • 2) Amazon should be required to comply with the dictates of said agency. Specifically, it should be illegal for Amazon to facilitate the sale of (for an extreme but illustrative example) a bomb... and if Amazon knows a given product causes cancer (whether it knows that from the regulatory agency or the manufacturer), it should be required to disclose that at the point of sale.
    • 3) Amazon should be required to make available the manufacturer's name / contact info / etc, both before the sale and as needed upon request after the sale (even if the vendor has ceased selling on Amazon).

    I'm fairly certain that #1 is already in place, and my guess is that #2 is being contested by Amazon, that Amazon is claiming something to the effect that they're more like a postal service than a store. If I have that right, then I wholeheartedly side against Amazon in this case; whether or not they're "like" a store or a delivery service in a traditional sense, they're a new kind of entity and we need tech laws to keep up with new tech entities. I don't think Amazon should be required to do consumer device testing, but IF there is an available database (from a regulatory entity) documenting harm, Amazon absolutely should be required to present that information at the point of sale.

    --
    - First they ignore you, then they laugh at you, then ???, then profit.
  5. Re:OH BIG GOV'T!!! P-P-P-PUH-PLEEEZE SAVE ME!!! by drinkypoo · · Score: 3, Informative

    We have consumer protection laws for a reason, and that reason is that not having them costs everyone money. This decision simply lets Amazon push the cost of doing business off onto the court system, which means We The People have to pay for their cost of doing business.

    So your entire underlying assumption is society is responsible for protecting someone who gets on the internet to find the cheapest piece of Chinesium crap from some seller engaged in Alibabatrage?
    Ummm, WHY?!?!?!

    I'm not sure I can explain it in smaller words than I did above. When people get hurt because they are dumb and do dumb things, it costs us all money, and it actually turns out to be cheaper for all of us to protect them from doing extremely dumb things. When someone burns their house down, it might burn your house down. They might have to move and consequently not do their job, which has downstream ripple effects that also cost other people money.

    Also, keep in mind that people don't even have to be dumb, just uneducated. In part because we have these consumer protection laws, people have gotten used to the idea that stuff they buy from major retailers won't burn their house down. Between the circuit overload protection devices in their homes which are legally mandated, and the usual legally mandated consumer protections that we have come to enjoy here in the supposedly greatest nation in the world, this is usually a safe assumption.

    Does this mean that people are getting used to taking less responsibility for themselves in certain areas? Yes, it does. But no one can reasonably be expected to be educated in all areas. The world is simply too complex for that. Given that, isn't it valid to offer people some basic protection? Is there actually some public interest in permitting companies to sell batteries which are best marketed as incendiary devices as if it were a good idea to bring them into your homes? In my book, that's a form of fraud. These devices were utterly unfit for their stated purpose, and constituted a significant public hazard.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  6. Re:Whenever company's do something terrible by jedidiah · · Score: 3, Insightful

    California? You must be joking. Amazon is simply not the responsible party here. The merchant has never been the responsible party. They shouldn't be. They didn't make the product.

    All this kind of nonsense will do is destroy the ability to do business. That will only drive away people that can feed money into your economy and prevent your cities from going bankrupt.

    What ever happened to whining about bottom feeding lawyers attacking whatever "deep pocket" they happen to come across?

    --
    A Pirate and a Puritan look the same on a balance sheet.
  7. Re:Dodge Dealer Reality by valnar · · Score: 2

    To be fair, nobody should be purchasing Chrysler or Dodge anyway. How many times do they have to be listed as the least reliable cars for people to care?

  8. Cheap, low quality vs burn our houses down by raymorris · · Score: 3, Insightful

    Approximately nobody wants to be a scooter that will burn their house down. Especially nobody wants their next door neighbor to buy one that ends up burning down your house too.

    That's an entirely different thing from products that simply aren't well made, cheap Chinese products that break after a month of use. Sometimes I DO want a cheap product that I only need for a couple of uses. Market forces can more or less work for overall quality, though of course no system is perfect.

    Consider also the difference between these:

    1. You may not sell cheap stuff made in China.
    2. If you sell dangerously defective things, you're responsible for injuries and damages your products cause.

    There is a difference between the government deciding what you can and can't do vs the common-sense principle that you are responsible for the results of your actions.

    Here buyers are suing in civil court to recover damages caused by Amazon selling dangerously defective goods. This isn't a criminal charge, the government putting people in jail for not doing what they are told. This is a private, consensual transaction - Amazon listed scooters for sale, the consumer paid Amazon for a fun scooter. Amazon instead delivered a fire bomb. The consumer asks that Amazon compensate them for the damage caused by the item Amazon sent them.

  9. Re:Whenever company's do something terrible by serviscope_minor · · Score: 3, Insightful

    All this kind of nonsense will do is destroy the ability to do business.

    Ah the old "Europe does not exist" argument. They are responsible in Europe and they are profitable enough to continue to do business there.

    --
    SJW n. One who posts facts.