US regulators have mandated that e-commerce giant Amazon must elevate its procedures for handling recalls of unsafe products sold on its platform, as per a ruling by the US Consumer Product Safety Commission (CPSC). The CPSC stated that Amazon's current alerts regarding hazardous items were inadequate in convincing customers to discontinue their use, leading to a directive for the company to devise a new plan outlining its responsive actions to such situations.

This decision from the CPSC stemmed from a lawsuit filed against Amazon in 2021, accusing the company of distributing over 400,000 unsafe products, including faulty carbon monoxide detectors. Although Amazon mentioned its intention to appeal the ruling while defending its existing practices, the CPSC highlighted the necessity for Amazon to enhance its recall messaging for customers, ensuring clear communication and urgent action in such circumstances.

Moreover, the CPSC clarified that Amazon's role in the distribution process extended beyond that of a typical shipping company, especially when merchants utilized its "Fulfilled by Amazon" service. Under this service, Amazon assumed greater control over various aspects, including returns, customer communication, pricing enforcement, and eligibility screening for products sold on its platform.

In response to the ruling, Amazon emphasized that it had discontinued the sale of the identified unsafe products, such as faulty carbon monoxide detectors, non-compliant children's pyjamas, and hairdryers lacking proper electrocution protection. While Amazon stated its ongoing efforts to notify customers, instruct them to cease product usage, and provide refunds, the CPSC noted that Amazon's notifications lacked essential information and did not adequately prompt customers to take necessary actions to mitigate risks.

The CPSC's decision underscores the broader discussion regarding the responsibility of online platforms for the products available on their sites. As companies navigate these regulatory landscapes, the ruling serves as a reference point for assessing the applicability of similar principles to their products and operations. Amazon's commitment to safety has been reinforced through its introduction of a product guarantee in 2021, offering avenues for refunds and the resolution of personal injury claims, while continuing to implement stringent measures to prevent the listing of unsafe products on its platform.