Amazon can be held liable for third-party sellers, rules federal court

The world’s biggest online marketplace has just suffered a blow in the United States. The 3rd US Circuit Court of Appeals in Philadelphia decided on Wednesday that the company may be held liable for products sold by third-party vendors -- a ruling which can pave the way for customers to sue Amazon over any defective products sold through its website.

Amazon was sued by a Pennsylvania woman named Heather Oberdorf, who bought a dog leash on Amazon from a third-party seller called The Furry Gang. The product malfunctioned and hit her in the face, leaving her permanently blind in her left eye. Neither Oberdorf nor Amazon were able to reach representatives from The Furry Gang, according to court papers cited by Reuters.

Liability for defective products is ruled by state law. The court decided that Amazon is a “seller” in this case, subjecting the company to the liability laws of Pennsylvania. This is the first time Amazon is defeated in a case like this. Several other courts have ruled in favor of the retail giant in the past.

About half of the items sold by Amazon are from third-party vendors, according to Statista. Those companies can either store their products in Amazon’s warehouses or ship them directly to customers.

Amazon has not commented about the ruling.