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Amazon Can Be Held Liable for Defective Third-Party Products:

What Does It Mean for Consumers?

For millions of Americans, Amazon has become the go-to destination for online shopping. Consumers can buy everything from electronics to everyday household items and have their purchases delivered to their doorstep within hours.

In 2025, more than 60% of products sold on Amazon came from third-party sellers.¹ That same year, third-party seller services generated $172.2 billion in revenue for Amazon through commissions, “Fulfilled by Amazon” (FBA) fees, and advertising.²

But when a product sold by a third-party seller turns out to be defective and causes injury, an important question arises: who is responsible?

For years, Amazon successfully argued it was merely an online "marketplace" connecting buyers and sellers, not a distributor or seller itself, and therefore not liable when third party products caused harm. But a landmark 2020 California Court of Appeal decision changed the landscape in the state of California, holding that Amazon can indeed be held strictly liable for defective products sold by third party sellers on its platform. This ruling has significant implications for consumer protection and the future of e-commerce.

The Bolger Case: A Turning Point

The case that reshaped Amazon's liability began with a simple online purchase. In 2015, Angela Bolger bought a replacement laptop battery through Amazon from a third-party seller, Lenoge Technology (HK) Ltd. The battery was part of Amazon's "Fulfilled by Amazon" (FBA) program, meaning Amazon stored the product in its warehouse, processed the payment, and shipped it directly to Bolger in Amazon-branded packaging.

Several months after the purchase, the battery exploded while Bolger was using her laptop, causing severe burns that required hospitalization. When Bolger tried to seek compensation, she discovered that the third-party seller could not be located. Faced with no other option, she sued Amazon.

Amazon moved for summary judgment, arguing that it was not subject to strict products liability because it wasn't the manufacturer, distributor, or seller (the “chain of distribution”) of the battery. The trial court agreed and dismissed the case. But on appeal, the California Court of Appeal reversed that decision in a detailed opinion that examined the realities of how Amazon operates in the modern marketplace.

Why the Court Held Amazon Liable

The Court of Appeal’s analysis centered on Amazon's actual role in the transaction, not just how the company characterized itself. The court found that Amazon had placed itself directly in the chain of distribution by accepting possession of the product, storing it in its warehouse, attracting consumers through marketing, providing the product listing, receiving payment, and shipping the product in Amazon packaging.

Based on these facts, the court concluded that Amazon was “an integral part of the overall producing and marketing enterprise that should bear the cost of injuries resulting from defective products.” Amazon controlled virtually every aspect of the transaction except manufacturing the product itself, and thus, bore personal injury liability.

The court emphasized several public policy considerations. In many cases, the third party seller is beyond the reach of U.S. courts, making Amazon the only entity reasonably available to compensate injured consumers. Amazon also has substantial control over which products appear on its platform and can remove unsafe items, creating an incentive for the company to monitor product safety.

What This Means for Consumers

The Bolger decision represents a significant victory for California consumers in the digital age. Consumers now have a viable defendant with the financial resources to compensate them for potential injury damages. This is especially critical when third party sellers are based outside of the U.S. and have no presence in the country, making them difficult to locate and sometimes impossible to hold accountable through a lawsuit.

With the threat of liability, Amazon now has greater incentive to vet sellers, monitor product safety, and quickly remove dangerous items from its marketplace. The decision also provides consumers with clearer legal recourse when injured by products purchased through Amazon's FBA program.

It's important to note that the court explicitly stated it was not deciding whether Amazon would be liable in all situations involving third-party sales. Courts in different states may also reach different conclusions based on their own products liability laws.

What to Do If You're Injured

If you've been injured by a defective product purchased on Amazon, several steps can protect your legal rights:

Preserve Evidence: Keep the product, packaging, and any documentation related to the purchase, including order confirmations and communications with Amazon or the seller.

Document Your Injuries: Seek medical treatment immediately and keep detailed records of all medical care, expenses, and how the injury has impacted your daily life.

Report the Incident: Notify Amazon about the defective product through their reporting system. This creates a record and may prompt them to remove dangerous items.

Consult an Attorney: Products liability cases involving e-commerce platforms can be complex. An experienced attorney can evaluate your case, determine liability, and ensure you pursue all available avenues for compensation.

Looking Forward

The Bolger decision recognizes that Amazon is no longer merely a “marketplace.” Instead, it’s an active participant in the chain of distribution that should bear responsibility when defective products cause harm. Having inserted itself into nearly every step of the transaction and profited from the sale, Amazon should not be permitted to reap the benefits of that role while avoiding the responsibilities that come with it.

At Singleton Schreiber, we understand the complexities of products liability cases involving online retailers. Our experienced attorneys stay at the forefront of evolving e-commerce law and are committed to protecting consumers' rights. If you or a loved one has been injured by a defective product purchased through Amazon or another online marketplace, we can help you understand your legal options and fight for the compensation you deserve. Contact Singleton Schreiber today to discuss your case and learn how we can help you hold the right parties accountable.

References:

¹ https://forceget.com/blog/how-many-sellers-are-on-amazon-2025-key-statistics/

² https://amzprep.com/amazon-marketplace-seller-statistics/#amazon-third party-seller-services-revenue