On Wednesday, the 3rd of July 2019, a US federal appeals court had ruled against the United States’ No. 1 online retailer, Amazon.com Inc. in a case that would likely to expose the retailer to lawsuits from consumers who had been purchasing products from third party sellers using Amazon’s online platform.
In point of fact, latest court decision came forth after two other federal appeals court had ruled in favor of Amazon.com Inc. ruling that the US online retailer could not be held accountable for the third-party sellers’ product sold through its online platform.
However, on Wednesday’s (July 3rd) verdict, the 3rd US Circuit Court of Appeals in Philadelphia had reversed a lower court decision, remarking the first of its kind to try to hold Amazon responsible for third-party sellers’ products in its e-commerce platform.
More crucially, according to data from Statista, the Seattle-based tech tycoon, Amazon, had earned about $11 billion in revenues from commissions generated through third-party sellers’ product during the quarter ended in March.
Liabilities for the defective products is usually overseen according to the state law, while Wednesday’s (July 3rd) decision was based on laws of the US state of Pennsylvania, where a plaintiff of this case Oberdorf resides.
Following the reveal of court’s verdict, Oberdort’s lawyer, David Wilk said, “It’s gratifying that the 3rd Circuit agreed with our argument and recognized that the existing interpretation of product liability law in Pennsylvania was not addressing the reality, the dominance that Amazon has in the marketplace”.