Sometimes, customers face problems with unsafe products purchased through online platforms. Their complaints remain unsatisfied in the most cases as there is no responsible body in the country. A company that provides an online platform for outside sellers usually insists that the online platform is a neutral marketplace connecting buyers and sellers. It is not liable for selling products as other companies write item descriptions and arrange product delivery.

However, recently, through the example of Amazon.com Inc., the U.S. Consumer Product Safety Commission (CPSC) decided to hold companies that provide online platforms to answer for marketing unsafe products on the online platform.

The CPSC wants the court to declare Amazon as a distributor according to the definition as laid out in the Consumer Product Safety Act as it stores and ships products. If the company will be declared in a judicial proceeding as a distributor it gives the agency the power to compel Amazon to cooperate with recalls of third-party products and levy penalties when it fails to do so.

It should be noticed, that Amazon itself started to make actions to be sure products on its marketplace are safe. Thus, now it implements a software that scans products for hazards. Moreover, to put the product on the platform, the sellers of some categories of goods must upload conformity assessment documents such as test reports or certificates.

In addition, Amazon proposed working with the CPSC to set up a voluntary system in which Amazon and other marketplaces would coordinate recalls on behalf of their sellers. 

So, even though the legal process can take years for implementation, the CPSC actions have already called the progress in promotion of production’ quality on the online platform.

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The information has been prepared by the GMA Consult Group team.‍

GMA Consult Group provides a full cycle of international type approval and global market access services for IT, Telecom, and industrial electrical products in all countries throughout the world. With proven expertise in worldwide regulations, compliance, certification, and conformity assessment, GMA Consult Group can help your company speed up the access to any market with almost zero efforts from your side.

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