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A bill to hold online marketplaces and platforms liable for damaged products will not move forward.
California bill AB 3262 was proposed to hold online marketplaces liable for damages or injuries that may be caused by defective products sold by third-party sellers. The proposal of the bill came following a California appeals court’s unanimous decision to make Amazon legally accountable for damaged products sold on its platform.
In August, an Amazon customer filed a lawsuit against the company because of a faulty replacement laptop battery she bought from a Hong Kong-based business that sells its products on Amazon. The customer complained that the battery blew up and caused her physical burns.
In a statement, Amazon said that the company would be ready to support the bill if it were amended to include all online stores. However, a few organizations and e-commerce companies, like eBay and Etsy, opposed the bill, saying that it would be unfavorable to small businesses that sell products via online platforms.
Josh Silverman, Etsy’s chief executive officer, said that there are already existing laws that protect consumers. In light of Amazon’s support of the bill, Silverman believes that the retail giant is trying to eliminate its competitors in the guise of protecting consumers.
Following the opposition, Mark Stone, the lawmaker who proposed AB 3262, said in a statement that the bill will no longer move forward. He explained that the California State Assembly engaged in discussions with people in the industry and decided to work on another online policy.