Amazon To Pay Compensation For Defective Goods

IN a new policy that aims to reduce litigation, Amazon says it will pay customers who suffer injuries or property damage from defective goods that other people sell on its United States platform.

The retail giant said on Tuesday that the new policy would take effect from September 1.

“Amazon will pay claims of up to $1,000 which would make up for 80% of injury and damage cases on its platform, at no cost to sellers and may also step in with more aid if the sellers are unresponsive,” the company said.

It explained that the policy “better protects Amazon customers and sellers.”

The tech and e-commerce company also announced Amazon Insurance Accelerator, a network of insurance providers that sellers can access if they want, and an updated policy that requires more merchants to get product liability insurance.

For years, consumer have sued the world’s largest online retailer, arguing that it is liable when a merchant sells bad products on official Amazon’s website.

Amazon had over the years maintained that sellers themselves were responsible and most courts had ruled in its favour.

Meanwhile, a state appellate court in California, last year said Amazon could be liable for goods it stores and ships via its fulfillment by Amazon programme.