The US Consumer Product Safety Commission has ruled that Amazon is responsible for recalling over 400,000 hazardous products distributed by third-party sellers on its platform. The products, which include faulty carbon monoxide detectors, hairdryers lacking electrocution protection, and children's sleepwear that violates federal flammability standards, were sold on Amazon.com through the Fulfilled by Amazon program. The CPSC issued a decision and order against Amazon, stating that the items pose a "substantial product hazard" and that the company failed to adequately notify the public or encourage customers to return or destroy the unsafe products.

Amazon, known for its $574.8 billion revenue in 2023, must now submit plans to remove the hazardous products from circulation by incentivizing their return or destruction. The company expressed disappointment in the CPSC's ruling and plans to appeal the decision in court. Despite Amazon's claims that it has proactive measures in place to prevent unsafe products, the agency found the retailer's actions to be insufficient in protecting the public.

The CPSC's order is seen as a significant development for online consumer protection, marking a crucial step in holding online marketplaces accountable for the products sold on their platforms. Consumer Reports' policy counsel, Oriene Shin, has urged Amazon to drop its legal battle with the CPSC, emphasizing the importance of ensuring product safety in online marketplaces. In July, the CPSC posted four recalls for products exclusively sold on Amazon, highlighting the ongoing challenges in regulating product safety in e-commerce spaces.