(Reuters) – Amazon.com Inc. on Tuesday said it would pay customers who suffer personal injury or property damage from defective goods that others sell on its US platform, in a new policy that can reduce disputes.
It also announced Amazon Insurance Accelerator, a network of insurance providers that sellers can access if they choose, and an updated policy that requires more merchants to obtain product liability insurance. Amazon itself does not offer this insurance, it said.
For years, consumers have sued the world's largest online retailer, claiming that it is responsible when a retailer sells bad products on Amazon.com. A Pennsylvania woman, for example, in 2016 tried to blame Amazon for a merchant's pull-out dog leash that blinded her eye when it snapped.
Amazon claims that sellers are responsible themselves, and most courts have ruled in favor of it. However, a state appeals court in California said last year that it could be responsible for goods it stores and ships through the Fulfillment by Amazon program.
As of September 1