Products Liability

Effective Sept. 1, 2021, Amazon will compensate customers who suffered injuries or property damage from a defective product they bought on Amazon, including those that were purchased through a third-party seller. Under the new policy, Amazon will pay customers directly for claims under $1,000, which accounts for over 80 percent of cases, according to Amazon.

Prior to this, customers had to work directly with the seller if they wanted to file a claim, which raised questions about who should be held liable for a defective product that is sold on Amazon. When this new policy is in effect, Amazon customer service will help coordinate the claims process with the customer, the seller, and the seller’s insurance company. If you suffered an injury or property damage from a defective product that you purchased on Amazon, it is highly recommended that you contact an experienced lawyer as soon as possible.

Over half of Amazon’s sales are generated by third-party sellers. There are millions of third-party sellers that are part of the Amazon Marketplace. Products sold by third-party sellers are listed with all other Amazon products, but there is an indication within the product listing that tells the customer that the product is not sold by Amazon.

To sell their products on Amazon, third-party sellers are subject to the terms of the Business Solutions Agreement (BSA), which states that all third-party sellers are responsible for any defects or public or private recalls of their products. Third-party sellers set the pricing for their products, and they are responsible for packaging the product, complying with applicable laws, and even shipping directly to buyers. They must also agree to the Conditions of Use, which states that Amazon is not liable for products sold by third parties.

How Does Amazon Avoid Liability?

Unlike other retailers, Amazon has the unusual legal status of being half-platform, half-store. When it comes to liability, Amazon has argued that customers and sellers are able to connect on the platform and that Amazon is the intermediary. From a legal perspective, this has allowed Amazon to avoid the liability that conventional retailers face. As a result, their third-party seller business has led to hundreds of billions of dollars in sales.

Third-party products sold in the Amazon Marketplace are often less expensive, less controlled, and in some cases, less reliable for other products. Since Amazon is considered the platform for those products rather than the actual seller, the retail giant does not assume liability if the product is defective. Customers often miss the difference between products sold in Amazon’s main retail store versus the Marketplace because they are not separated on the website. Courts are starting to look more closely at this issue and whether Amazon should be liable for products sold by third-party sellers.

What are Examples of Past Legal Issues Involving Third-Party Products?

Courts have ruled on both sides of the debate when it comes to third-party products sold on Amazon and whether Amazon should be held liable for defective products. The following are examples of products liability cases involving Amazon.

• Oberdorf v. Amazon (2020): The plaintiff was walking her dog when the leash she purchased from a third-party seller on Amazon snapped, striking her glasses, and injuring her left eye. The Third Circuit applied the Pennsylvania Supreme Court’s four factor test from Musser v. Vilsmeier Auction Co., Inc. to decide. Ultimately, the injury left her permanently blind in her left eye. After considering the facts, the Third Circuit overturned the U.S. District Court’s Order, which granted summary judgment to Amazon and held that Amazon could be liable. However, the case settled before a decision was carried out, which means that the Third Circuit could rule differently in a future case.
• Bolger v. Amazon (2020): In this case, the plaintiff purchased a replacement battery for her laptop computer through a third-party seller. The battery exploded, causing the plaintiff to suffer severe burns. The plaintiff sued Amazon, as well as several other defendants, alleging causes of action for strict liability, negligent products liability, breach of implied warranty, breach of express warranty, and negligent undertaking. Amazon’s motion for summary judgment was granted by the trial court. Amazon argued that the theory of liability did not apply to the retailer because it did not distribute, manufacture, or sell the battery. However, the Court of Appeal held that Amazon placed itself in the chain of distribution of the product and that Amazon could still be held liable.

Third-party sellers account for over half of all products sold on the retail giant’s website. Sellers include everything, from established brands to handmade crafts made by individual sellers. A significant percentage of manufacturers are based in China.

In addition to compensating shoppers for claims of property damage or personal injuries under $1,000, Amazon may compensate shoppers for amounts larger than $1,000 if the seller is unresponsive or rejects a valid claim. Amazon has also offered to assist sellers with purchasing their own liability insurance. Due to the complexities of these cases and the recent court decisions, it is highly recommended that customers who have purchased a defective product from a third-party seller contact an experienced lawyer.

What Do I Need to Know About Filing a Products Liability Claim in California?

If you wish to pursue a products liability claim, there are several factors you must establish to reach a successful settlement. For example, you must prove that the product that you purchased is unreasonably hazardous, that you suffered an injury, and that the defective product caused the injury. To do this, it is important to compile as much evidence as possible, including photographs of the product, the packaging and product manual, photographs of the injury, as well as medical records.

When it comes to products liability cases, California follows the strict liability rule, which means that you do not have to prove that the seller’s negligence caused the injury. You must prove that your injury was caused by the defect. While you do not have the burden of proving negligence, the process of filing a personal injury claim can be challenging, particularly when pursuing legal action against a large company, like Amazon.

It is also important for claimants to understand the statute of limitations concerning products liability claims. All claims must be filed no later than one year after your injury was discovered. If you miss this deadline, your claim will be denied, and you will not be eligible to collect compensation for your injury.

Too often, defective, or unsafe products cause consumers to suffer serious injuries, including burns, cuts and lacerations, and blindness. In extreme cases, defective products can cause devastating fatalities. Many of these injuries could have been prevented if the necessary safety protocols were in place and if the seller did not prioritize profit over safety. Unfortunately, the costs associated with these injuries can accumulate very quickly.

A skilled lawyer will assist you with every step of the claims process. A lawyer might be able to help you receive compensation for the following:

• All medical expenses related to the injury, including hospitals expenses, doctor visits, physical therapy, and prescription medications.
• Lost wages if the injury prevents you from being able to return to work.
• Loss of future earning capacity.
• Property damage.
• Pain and suffering, including loss of enjoyment of life, loss of consortium, and loss of companionship.

Los Angeles Products Liability Lawyers at ACTS Law Advocate for Clients Injured by Defective Products Sold on Amazon

If you were injured by a defective product that you purchased from a third-party seller on Amazon, you are urged to contact our Los Angeles products liability lawyers at ACTS Law. We will conduct a thorough investigation into the details of your case. To schedule a free consultation, call us today at 833-ACTS-LAW or contact us online. Located in Los Angeles and San Diego, we serve clients throughout Southern California.

Consumers want to believe that the products they buy are safe for both themselves and their family to use. Unfortunately, that is not always the case. The statistics are startling; product defects result in nearly three million injuries and 22,000 fatalities every year in the United States, according to the Consumer Product Safety Commission (CPSC). Additionally, the CPSC reports that up to 10 percent of all personal injury lawsuits involve product defects. Although products liability claims can be complex, they are often worthwhile to pursue for the public’s safety if the lawsuit leads to a recall or revision of the product.

What is a Products Liability Claim?

Products liability refers to a legal claim or lawsuit in which someone contends that a product malfunctioned, failed to work properly, or was too dangerous to operate. As a result, it caused bodily injury or death. In products liability cases, the plaintiff seeks to hold one or more of the following parties liable for the faulty product and the resulting injuries or death:

• The company that designed the product
• The manufacturer(s) involved in making parts or components of the product
• The party or parties that assembled or installed the product
• The wholesaler
• The retail store that sold the defective product

Product liability claims are based on one of three different theories of law: negligence, strict liability, or breach of warranty of fitness:

Negligence. Negligence claims focus on the actions of the parties that designed, manufactured, assembled, or installed the product. A plaintiff must prove four elements in a negligence case:

•  A duty of care was owed to the consumer
• This duty was breached
• This breach of duty caused injury
• The damages to the plaintiff are calculable

Strict liability. Strict liability dictates that if a product is defective and this defect caused injury, then the liable party is responsible for paying damages. In these cases, attention is placed on the product itself versus negligence that focus on the conduct of the designer or manufacturer. Under strict liability, a plaintiff would not need to prove negligence or fault but rather that the risk of using the product outweighs its value to society or that the product fails to meet a consumer’s reasonable expectations for safety in usage.

Breach of warranty of fitness. Product warranties essentially guarantee that a product will function in a specific way and to a certain standard. A breach of warranty can be express, an implied warranty of merchantability, or an implied warranty of fitness. Express means that a product warranty is written in a sales contract or spoken to the consumer. Implied warranty of merchantability holds that a product will meet a buyer’s reasonable expectations, while a warranty of fitness maintains that the product will meet the buyer’s intended use.

Products that Incur Liability

Any item that is designed, manufactured, and distributed for purchase or consumption by the public can be the subject of a products liability claim or lawsuit, including but not limited to the following:

• Consumer goods, such as motor vehicles, tools, appliances, toys, sporting goods, games, recreational equipment, furniture, and other items
• Real estate and improvements to real estate; land is not included
• Industrial and construction equipment
• Farm machinery and equipment
• Raw or prepared food and beverages
• Prescription drugs
• Over-the-counter medicine or hygiene, health, and beauty products
• Medical devices and equipment

The Basis of Suing for Product Defects

Each state’s products liability laws differ. In California, three main types of products liability defects can be the basis of a claim or lawsuit:

Design defect. In a design defect claim, the plaintiff alleges that a product did not have proper safety features or had other unsafe elements that could have been eliminated by a change in design. Design defects involve all the products of a certain design because the defect is inherent in the product from conception. A plaintiff must prove that they were using the product the way it was intended when the damage or loss occurred. A design defect can cause either bodily injury or loss of use or enjoyment of the product. Examples of design defects include:

• A chair that tips over when too much weight is placed on one side
• A hair dryer that causes electrical shock when on the high setting
• Pajamas that catch fire when close to, but not in contact with, an open flame
• Toys that include parts that a child could choke on
• Rat poison that comes in a bottle with a lid that leaks

Manufacturing defect: Some products cause injury because of a flaw in the construction or manufacturing process, which occurs after the design phase. Unlike design defects, manufacturing defects usually exist in one or a few items, rather than every product in a line. For example, there may be a manufacturing defect in an airbag that did not deploy on a certain make and model of car, but not all cars of that make and model have malfunctioning airbags.

Manufacturing defects are aspects of the product that the manufacturer did not design or intend. They occur when a product deviates from its intended design, regardless of how much care the manufacturer took to select materials, train workers, control quality, and oversee production. Examples of manufacturing defects include the following:

• Using the wrong materials, metals, or plastics when constructing a product
• Using less expensive/robust materials than required by the product design
• Improperly assembling, fastening, or attaching materials and parts
• Incorrectly installing wires or circuitry
• Using harmful chemicals or other hazardous materials in manufacturing

Inadequate warnings or instructions. Some products carry risk no matter how well they are designed or manufactured. In these circumstances, the manufacturer must provide adequate warning of the potential for danger. Failure to provide warnings or providing them in a way that is difficult to see or understand can result in manufacturer liability.

When it comes to failure to warn lawsuits, a plaintiff must show that the manufacturer knew of the danger or should have known of the danger and that consumers would not likely discover the danger on their own. The warning provided to the consumer must be adequate and considered useful to a normal person who can understand the risks of the danger. Examples of products that must have a warning label include choking or suffocation hazards, toxic chemicals or other hazardous substances, and furniture that could cause a toppling hazard.

Los Angeles Products Liability Lawyers at ACTS Law Assist Consumers Injured by Defective Products

If you or someone you love has been injured or killed because of a defective product, contact the Los Angeles products liability lawyers at ACTS Law. For a free consultation, call us at 833-ACTS-LAW or contact us online. From our offices in Los Angeles and San Diego, we serve clients throughout Southern California.

When a product is sold to consumers, the manufacturer or seller has a responsibility to ensure that the product is safe. That includes the way the product is designed, manufactured, and sold. Products are legally required to meet the ordinary expectations of the consumer. When a product has a defect that jeopardizes the consumer’s safety, it does not meet the consumer’s ordinary expectations. If a consumer is injured by a defective product, he or she may wish to file a products liability lawsuit against the liable party. A skilled attorney will review the details of the case, determine who is liable for the injuries, and fight for all entitled compensation that the consumer deserves.

Types of Products Liability Claims

Although there are a wide range of defective products cases, they generally fall into the following main categories:

• Defectively manufactured products: This is a product that was defective or flawed when manufactured. The defect affects a specific product within a product line. For example, an error on an assembly line may result in a set of defective brakes in one of the vehicles. Other examples of manufacturing defects include the following:
  • A bicycle with a broken chain
  • A batch of cold medication tainted with a poisonous substance
  • A motor vehicle that is missing its brake pads

In order to pursue a products liability claim, the injured person must be able to prove that the defect caused the injury. For example, if a motorist was speeding and was injured in an accident after being unable to slow down when he approached a curve in the road, he must be able to prove that the missing brake pads caused the accident, and not the fact that he was speeding.

• Defectively designed products: In this category, a product’s design is defective and potentially dangerous. These defects are particularly concerning because they involve an entire product line, as opposed to a single defectively manufactured product. The individuals who worked on the product line may have followed the manufacturer’s specifications exactly, but if the design is defective, an entire line of potentially defective products can be sold to consumers. Examples of defectively designed products include the following:
  • A line of sunglasses that do not protect the eyes from dangerous ultraviolet rays
  • Airbags that do not provide adequate protection when they deploy
  • Electric shavers that electrocute the user when the device is turned to the high position

As with defectively manufactured products, a person who is injured must be able to prove that the injury was caused by the defective design. For example, if an individual is electrocuted while using an electric shaver near water, he or she must be able to prove that the injury was caused by the defective product, and not by an electric device being used incorrectly.

• Failure to provide adequate warning or instructions: Some products come with inherent risks that can compromise consumers’ health and safety if the product does not come with clear instructions and warnings for potential safety risks. If a product’s risks are obvious, such as the fact that a sharp knife can be dangerous if not handled properly, or that a consumer can fall off of a ladder if he or she is not careful, the manufacturer is not liable for resulting injuries. However, if a product is dangerous in some way that is not obvious to the consumer, the manufacturer can be held liable for injuries suffered. Examples of failure to warn claims include the following:
  • Over-the-counter medication that does not include a warning about dangerous side effects that can occur when taken in combination with another drug
  • An electric tea kettle that does not include a warning about a steam valve that is oddly positioned, which can cause serious burns
  • A corrosive paint-removing chemical that does not feature clear instruction on how to safely use and handle the product.

Again, an injury must be directly caused by a failure to warn, not simply by the product alone. For example, if a consumer suffers a burn injury from the electric tea kettle discussed above, that is not enough to file a products liability claim. He or she must prove that the burn was caused by the poorly positioned steam valve.

• Breach of warranty: Some products, such as automobiles, appliances, and electronics, come with warranties. A consumer may be able to file a products liability claim if the product comes with a written warranty but fails to live up to the terms. For example, if a consumer purchased a computer that has a 90-day warranty, and the computer crashed or stopped working within those 90 days, the consumer may be able to file a products liability claim if he or she is charged for any repairs to the computer.

Prescription drugs are often the subject of product liability lawsuits. Drug companies have a responsibility to follow all testing criteria required by the U.S. Food and Drug Administration (FDA). However, even if a drug is licensed by the FDA, it does not affect the manufacturer’s liability if a consumer is injured by a drug that proves to be defective. When it comes to determining liability for a drug-related injury, the doctor who prescribes a drug, a nurse who administers a drug, or a pharmacist who fills a prescription can all be considered at-fault. A skilled legal professional can determine who is liable and secure financial compensation for the resulting injuries.

Key Elements of a Products Liability Claim in California

For a consumer to have a successful products liability claim, he or she must prove the following:

• The seller or manufacturer designed, manufactured, distributed, or sold a defective product.
• The product was defected when it left the seller or manufacturer’s possession.
• The consumer used the product in a reasonable, foreseeable way.
• The consumer was injured as a result of the defective product.

If the claim meets these requirements, the consumer can proceed with a products liability lawsuit, which must be filed within two years from the time the injury is or should have been discovered. Missing this deadline could jeopardize the consumer’s right to recovery or result in the claim being denied.

Who is Responsible for a Product Defect?

For products liability to arise, the defective product had to be sold in the marketplace, and that product caused the consumer to become injured. There are several parties that make up a product’s chain of distribution. Depending on the nature of the defect, liability may rest with any of the following parties:

• The product manufacturer
• The manufacturer of the defective parts of a product
• The individual responsible for assembling or installing the product
• The wholesaler
• The retail store that sold the defective product to the consumer

What Defense Strategies Do Manufacturers Use in a Products Liability Case?

If a consumer is injured by a defective product, the seller, manufacturer, or other party who sold the defective product may use the following defense strategies to protect their interests and avoid being held liable for the consumer’s injuries:

• The product was not defective when the consumer purchased the product.
• The product was altered or repaired negligently by another party.
• The consumer used the product in a way that was not reasonably foreseeable.
• The consumer could not prove that there were injuries.
• Someone else was liable for the consumer’s injuries.
• The consumer’s own negligence caused his or her injuries.

What Damages can a Consumer Collect?

California uses the comparative negligence rule, which means that an injured consumer can collect damages even if he or she is 99 percent at-fault. However, the amount of damages that he or she will collect is limited by his or her degree of fault. For example, if a consumer purchased a product that exploded, resulting in $10,000 in damage to the consumer’s home, the consumer could recover $8,000 from the seller or manufacturer of the product even if he or she was 20 percent at-fault. The economic loss rule states that individuals cannot recover damages for pure economic losses, including lost profits.

In California, the economic loss rule generally prohibits individuals from recovering damages for purely economic losses, including lost profits.  In this context, a purely “economic loss” occurs where the plaintiff has suffered no appreciable personal injuries or property damage, such as improper construction work that has not caused any out-of-pocket damage to the structure.  Despite this rule, a pure economic loss can be recovered in a limited number of circumstances.  For example, if the parties are in a special relationship where the plaintiff was an intended beneficiary of a particular transaction, but was harmed by the defendant’s negligence in carrying it out, the economic loss rule will not apply.  The circumstances of the case will determine whether the parties are in a special relationship that the law will recognize.

LA Catastrophic Injury Lawyers at ACTS Law Assist Clients with Products Liability Claims

If you or a loved one was injured by a defective product, you are urged to contact the LA catastrophic injury lawyers at ACTS Law at your earliest convenience. We will thoroughly review your case and determine who is responsible for the defective product that caused your injuries. Our skilled legal team will work tirelessly to protect your rights. To schedule a free consultation, call us today at 833-ACTS-LAW or contact us online. From our offices in San Diego and Los Angeles, we serve clients throughout Southern California.