Amazon will start directly paying compensation to customers who are affected by dangerous products sold by independent sellers in its store.
The announcement comes almost a month after the federal US Consumer Product Safety Commission (CPSC) sued Amazon for the recall of dangerous products sold on its platform.
Effective from
The company said that from September 1 it will pay out on personal injury or property damage claims of up to $1,000 for defective products sold through Amazon.com.
It also said on its website that it might pay out higher amounts if the vendor fails to respond to claims or rejects a claim.
Under its new rules, Amazon said claims would be analysed by “advanced fraud and abuse detection systems with external, independent insurance fraud experts”.
Frivolous claims would be dismissed, it said, saying its system would save sellers time and money investigating claims themselves.
Working mechanism
Customers can contact Amazon’s customer service and they will notify the seller of the problem. If the seller doesn’t respond, Amazon said it will “address the immediate customer concern, bear the cost ourselves, and separately pursue the seller.”
If the seller rejects the claim, Amazon said it might step in to help address the problem and pay up to $1,000 at no cost to the seller.
Blogpost by Amazon
“By standing behind customers and the products in our store, regardless of who sells them, Amazon is going far beyond our legal obligations and what any other marketplace service provider is doing today to protect customers.”
Press the 🔔 icon for notifications of all new updates
