Amazon pays consumers for damage caused by third-party products from September 1

*The global e-commerce giant says the policy is intended to head off lawsuits that consumers have filed over the years, but claims are limited to $1,000 without admitting liability

*Company opens new air hub in Kentucky to accommodate 100 Amazon-branded planes and handle estimated 200 flights daily

Isola Moses | ConsumerConnect

Without admitting liability for same, global e-commerce giant Amazon has disclosed that it will pay consumers who suffer injury or damage caused by products sold by company’s third-party sellers, beginning from September 1, 2021.

ConsumerConnect learnt, however, that the tech company will limit claims to $1,000 for such damage or injury suffered by consumers.

The policy is intended to head off lawsuits that consumers have filed over the years that seek to hold the multi-billion Dollar company responsible for damage or injuries caused by small businesses that use its e-commerce platform.

Amazon’s position has been that the third-party seller is responsible, and the courts have generally agreed, agency report said.

Everything for sale on Amazon may look to a casual consumer like it is an Amazon product, but the number of third-party sellers on the platform has been increasing over the years.

By some estimates, over 50 percent of products sold on the platform are now offered through third-party sellers, according to report.

It was gathered that consumers have sometimes complained about the quality and safety of these products.

Recently Tim, of Schenectady, NY, posted a review about a fold-away football goal for his son that was purchased from a third-party Amazon seller, reports ConsumerAffairs.

Tim wrote: “It came folded in a thin fabric bag, as we opened it snapped open, the plastic/composite bars that were folded in tension burst out, all them were snapped from the metal bars that held them together, and so their spiked edges flew out almost catching me in the eye.”

Tracking the counterfeiters

Report indicates Amazon’s third-party marketplace has often been accused of being riddled with unsafe and counterfeit products.

However, coupled with the new policy on claims, the tech company has said that it is launching a crackdown on counterfeiters.

The company recently joined GoPro in a lawsuit against seven individuals and two entities, accusing them of counterfeiting GoPro’s popular camera accessories, including the floating hand grip, “The Handler,” and the “3-Way” grip, extension arm, and tripod mount.

The suit claims that the defendants attempted to offer the infringing products on Amazon’s platform, violating the company’s policies, infringing on GoPro’s trademarks, and breaking the law.

The lawsuit was filed in the United States District Court for the Western District of Washington.

Kebharu Smith, Director of Amazon’s Counterfeit Crimes Unit, said: “When counterfeiters attempt to sell in our store, they not only violate the intellectual property rights of companies like GoPro, they also mislead consumers and harm Amazon’s reputation as a place to buy authentic goods.”

The suit also claims that nine defendants used GoPro’s registered trademarks without authorisation “to deceive customers about the authenticity and origin of the products and create a false affiliation with GoPro.”

Amazon said it has closed the defendants’ selling accounts and has refunded the affected consumers.

Amazon officially opens new air hub

Meanwhile, Amazon has unveiled a new $1.5 billion air hub in northern Kentucky, in the US.

The company it says will help consumers to get their packages delivered significantly faster.

The e-commerce giant says the new Amazon Air hub will also give it greater control over its logistics network.

Following over four years in planning and development, operations at the 600-acre hub officially got underway Wednesday, August 11, 2021, CNBC report said.

The hub was designed to be able to accommodate 100 Amazon-branded planes and handle estimated 200 flights per day, but Amazon says its main focus right now is handling package volume.

Amazon Global Air Vice-President Sarah Rhoads said: “Right now, we’re focused on our customers for sure.

“We built the hub in Cincinnati to serve our Amazon customers, there’s really no other purpose than that.”

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