Amazon will pay up to $1,000 to people injured by third-party products sold on its platform, it said.- Third-party Amazon sellers won't have to chip in if they have valid insurance, Amazon said.
- Amazon said the new policy, which starts September 1, does not mean it accepts liability.
Amazon will soon start paying
The new policy starts September 1, and payments are capped at $1,000, it said in a $4.
Amazon will pay customers directly, it said. Sellers remain liable, but Amazon won't expect sellers to pay it back if they had valid insurance, it said.
Amazon also announced that from September 1 it will play a bigger role in mediating damage claims between customers and third-party sellers.
"Customers can contact Amazon Customer Service, and we will notify the seller and help them address the claim," it said in the blog post. "If a seller does not respond to a claim, Amazon will step in to directly address the immediate customer concern, bear the cost ourselves, and separately pursue the seller."
At the moment, customers $4, but the company rarely steps in.
Amazon has previously $4 sold on its platform. Amazon said the new compensation policy does not mean it accepts liability for
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In an August 2020 case, a California woman sued Amazon, claiming a replacement laptop battery she bought on the site exploded and burned her. The company said it shouldn't be held liable because it "did not distribute, manufacture, or sell the product." $4, overturning an earlier judgement.
The new policy announcement also comes one month after the Consumer Product Safety Commission (CPSC) $4, claiming it did not do enough to warn customers about 420,000 dangerous items sold on its platform, including hairdryers and carbon monoxide detectors. Amazon argued it had complied with the CPSC's requests to warn customers about the items.
While the new policy only applies to the US, an Amazon spokesman told Insider the company is looking to expand it to other countries.