E-commerce is responsible for a growing share of all retail sales. As a general matter, when a dangerous product injures a consumer, any company in the supply chain can be held liable through a Florida personal injury lawsuit. A recent federal appellate court decision clarifies the situations in which large online retailers can be held responsible for products that are sold on their sites.
According to the court’s opinion, the plaintiffs’ purchased a hoverboard on Amazon.com (Amazon). The hoverboard was sold on Amazon’s website, but was sold by a third-party seller. Neither Amazon nor the third-party seller manufactured the hoverboard. However, there was conflicting evidence whether the item was sold through Amazon’s “fulfilled by Amazon” (FBA) program.
The FBA program was essentially a drop-shipping agreement by which third-party sellers would pay Amazon and send their products to an Amazon warehouse. When an item was purchased, Amazon would ship the product. Aside from storing and shipping the product, Amazon had no role in selling the product, including setting the price or advertising the hoverboard, and never took ownership of the item. The hoverboard arrived in an Amazon box, and the plaintiffs believed that Amazon sold it. There was also conflicting evidence regarding whether Amazon retained payment for the hoverboard.