Amazon Will Pay Customers Up To $ 1,000 For Products Causing Personal Injury, Property Damage

Amazon said on Tuesday it will pay customers who have been injured or whose property has been damaged by products sold by third-party sellers.

Starting September 1, Amazon will introduce an updated version of its current claims process, known as the A-to-Z Guarantee, which will pay the e-commerce giant’s customers up to $ 1,000 for valid claims regarding defective products sold by third party sellers on its platform that cause property damage and personal injury.

Claims for defective products under $ 1,000 account for over 80% of Amazon’s cases.

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“By supporting our store’s customers and products, no matter who sells them, Amazon goes far beyond our legal obligations and what any other service provider in the market is doing today to protect customers,” said Amazon said in a blog post.

Customers can file a complaint through Amazon customer service. Amazon will then investigate claims using its own fraud and abuse detection systems as well as external and independent insurance fraud experts before notifying third-party sellers. Sellers will be kept informed every step of the way so that they can continue to ensure the safety of their products.

If a seller does not respond to a complaint, Amazon says it will “address the customer’s immediate concern, bear the costs ourselves, and sue the seller separately.” If a third-party seller rejects a claim that Amazon deems valid, the company will give them an opportunity to defend their product against the claim. Amazon will not seek refunds from sellers who adhere to its policies and have valid insurance.

Additionally, Amazon will launch its Insurance Accelerator program to help third-party sellers purchase insurance competitively from trusted providers. Sellers who opt will only pay the cost of the insurance itself. They can also continue to purchase insurance from any qualified insurer of their choice.

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The announcement comes after the United States Consumer Product Safety Commission (CPSC) filed a lawsuit against the company in July in an attempt to “force Amazon to accept responsibility for recalling potentially unsafe products sold on Amazon.com “.

The agency’s complaint billed Amazon for specific defective products, which it said “pose a risk of serious injury or death to consumers.” Products include 24,000 faulty carbon monoxide detectors that do not trigger an alarm, numerous children’s sleepwear that violate the safety standard of flammable fabrics that could burn children, and nearly 400,000 hairdryers sold. without the required immersion protection devices that protect consumers from shock and electrocution.

While acknowledging that Amazon has made efforts to protect consumers on some of the items it reported, it argued that the company’s actions were “insufficient.”