Amazon Ordered to Recall Over 400,000 Hazardous Products by US Consumer Safety Agency
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E-Commerce Giant Amazon Ordered To Recall Over 400K Hazardous Products Sold On Its Site By US Federal Agency - Amazon.com (NASDAQ:AMZN)
The U.S. Consumer Product Safety Commission (CPSC) has held e-commerce giant Amazon Inc. AMZN accountable for recalling over 400,000 hazardous products sold on its platform. What Happened: On Tuesday, CPSC issued a decision and order against Amazon, categorizing the e-commerce behemoth as a "distributor" of defective or unsafe products. The company is legally bound to recall over 400,000 products, including faulty carbon monoxide detectors, hairdryers without electrocution protection, and children's sleepwear that violates federal flammability standards. "The Commission determined that these products, listed on Amazon.com and sold by third-party sellers using the Fulfilled by Amazon program, pose a 'substantial product hazard' under the Consumer Product Safety Act (CPSA)," a press release by the commission read. See Also: Mark Zuckerberg Gets Triggered By Closed AI Models At SIGGRAPH 2024, Drops F-Bomb While Talking With Nvidia CEO Jensen Huang: 'There Goes Our Broadcast Opportunity' Amazon was found to have inadequately informed the public about these hazardous products and did not take sufficient measures to encourage customers to return or destroy them, according to the CPSC. The decision and order follow a three-year-long administrative complaint against Amazon, alleging the distribution of products posed a substantial hazard. The e-commerce giant contended that it was not acting as a distributor and was therefore not responsible for public protection actions. The company also claimed that sending messages to initial purchasers about "potential" safety issues and offering credits were sufficient to remedy the hazards. However, both the agency and an administrative law judge disagreed with Amazon's assertion, finding the retailer's actions "inadequate to protect the public." Amazon is now required to submit proposed plans to notify people about the hazardous products and to remove them from circulation by incentivizing their return or destruction, the agency said. Amazon expressed disappointment with the CPSC's decision and plans to appeal the ruling in court. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It Matters: Amazon is currently gearing up to report its second-quarter earnings on Thursday. Analysts predict significant growth in sales and cloud services. BofA Securities' analyst Justin Post forecasted Amazon's Q2 revenues to hit $149 billion, 40 basis points above Wall Street's expectations. AWS was expected to grow at 18% year-over-year, beating the Street's 17% estimate. Goldman Sachs analyst Eric Sheridan has also previewed Amazon's upcoming second-quarter operating results and raised his 2025 GAAP operating income estimate to 8% above the Street's projection, citing potential margin improvements. Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Elon Musk, Bernard Arnault Once Discussed Potential SpaceX-Louis Vuitton Collab: 'I'm Afraid He Will Ask Me To Go With Him In The Rocket' Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs
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Amazon blamed of failing to adequately notify buyers about 'dangerous' recalled products - Times of India
A US government agency has ruled that Amazon must recall dangerous products sold on its marketplace. The U.S. Consumer Product Safety Commission (CPSC) has mandated the e-commerce major to recall over 400,000 hazardous products sold on its site. The agency determined that the e-tailer was a "distributor" of products that were defective or failed to meet federal safety standards. In a news release, CPSC listed the hazardous products available on Amazon. These products include faulty carbon monoxide detectors, hairdryers without electrocution protection and kids' sleepwear that violates federal flammability standards. Items that were listed as hazardous The carbon monoxide detectors identified by the CPSC as faulty or non-compliant with U.S. standards include those from WJZXTEK, Zhenzhou Winsen Electronics Technology, and BQQZHZ. Children's clothing items sold on Amazon and cited by safety regulators include the HOYMN Little Girl's Lace Cotton Nightgowns; IDGIRLS Kids Animal Hooded Soft Plush Flannel Bathrobes for Girls and Boys; Home Swee Boy's Plush Fleece Robe Shawl Skull; and Taiycyxgan Little Girl's Coral Fleece Bathrobe Unisex Kids Robe Pajamas Sleepwear. Hair dryers on the list include products from sellers or manufacturers such as BEAUTIKEN; OSEIDOO; Aiskki; Raxurt Store; LEMOCA; Songtai; VIBOOS; and Xianming. What CPSC has to say about Amazon As per CPSC, third-party sellers on Amazon listed hazardous products that the company fulfilled and shipped (through "Fulfillment by Amazon"). These products violated the CPSC Act due to serious safety risks. However, the CPSC alleges Amazon failed to properly warn the public or encourage customers to return or dispose of these dangerous items. This decision follows a three-year investigation by the CPSC, which originally accused Amazon of distributing these unsafe products. The online retailer didn't deny the products were hazardous but argued it wasn't responsible for public safety since it wasn't the seller. Amazon also claimed that contacting initial buyers about potential safety concerns and offering refunds were enough to address the problem. The CPSC and an administrative law judge disagreed, finding these efforts inadequate to protect consumers. Now, Amazon is required to develop plans for notifying people about the dangers and taking the products out of circulation. This might involve offering incentives for customers to return or destroy them. What Amazon said about this ruling Amazon said that it is unhappy with the CPSC's ruling and plans to challenge it in court. In an email to CBS MoneyWatch, a company spokesperson said: "We stand behind the safety of every product in our store through our A-to-z Guarantee, regardless of whether it is sold by Amazon or by one of our selling partners. We have proactive measures in place to prevent unsafe products, and we continuously monitor the listings in our store. If we discover an unsafe product available for sale, we address the issue immediately, and refine our processes." The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.
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The US Consumer Product Safety Commission has ordered Amazon to recall over 400,000 potentially dangerous products sold on its platform. The e-commerce giant is also accused of failing to adequately notify buyers about recalled items.
Amazon Faces Massive Product Recall
E-commerce giant Amazon has been ordered by the U.S. Consumer Product Safety Commission (CPSC) to recall more than 400,000 potentially hazardous products sold on its platform 1. This unprecedented move highlights the growing concerns over product safety in the digital marketplace and the responsibilities of online retailers.
Scope of the Recall
The recall encompasses a wide range of items, including:
- Carbon monoxide detectors
- Hair dryers
- Children's sleepwear
These products, sold by various third-party sellers on Amazon's platform, have been deemed potentially dangerous due to their failure to meet federal safety standards 1.
CPSC's Concerns and Actions
The CPSC has expressed serious concerns about Amazon's handling of product recalls. The agency alleges that Amazon has failed to provide adequate notification to consumers who purchased these hazardous items 2. This lack of communication potentially leaves consumers exposed to risks associated with these products.
In response to these concerns, the CPSC has taken the extraordinary step of issuing a unilateral order for Amazon to recall the products. This action underscores the agency's commitment to consumer safety and its willingness to take decisive action against even the largest e-commerce platforms.
Amazon's Response and Responsibilities
Amazon, for its part, has stated that it has already removed the vast majority of the products in question from its platform 1. However, the company now faces the challenge of effectively notifying all customers who have purchased these items and facilitating their return or disposal.
The e-commerce giant's role in this recall raises important questions about the responsibilities of online marketplaces. As a platform that connects third-party sellers with consumers, Amazon's duty of care in ensuring product safety and managing recalls is under scrutiny.
Implications for E-commerce and Consumer Safety
This large-scale recall order has significant implications for the e-commerce industry as a whole. It highlights the need for:
- Stricter vetting processes for products sold on online platforms
- Improved systems for tracking and managing product recalls
- Enhanced communication channels between retailers, sellers, and consumers
The incident also serves as a wake-up call for consumers, emphasizing the importance of staying informed about product recalls and being vigilant about the safety of items purchased online.
As e-commerce continues to grow, balancing convenience with consumer safety remains a critical challenge. This recall order against Amazon may set a precedent for how regulatory bodies approach safety issues in the digital marketplace, potentially leading to more stringent oversight and regulations in the future.
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