Amazon.com Inc. (NASDAQ: AMZN) is revising its return policy to compensate customers up to $1,000 for damage or physical harm caused by products sold by third-party merchants. The company has not been liable for third-party issues.
Amazon to pay customers and pursue merchants after
On Tuesday, the eCommerce giant declared that it would handle customer satisfaction in-house and then pursue merchants if third parties are unresponsive or unable to reimburse legitimate claims. The changes, according to Amazon, will take effect on September 1, 2021, for all products sold on its website.
According to the company, customers can contact its customer service, who will alert the vendor to the issue. If the vendor does not reply, Amazon says it will handle the immediate consumer problem, cover the expense, and pursue the vendor independently. Should the seller reject the allegation, Amazon said it might intervene to help solve the problem by paying up to $1,000 at no cost to the vendor.
The company said that customers and sellers would save time, money, and effort with a streamlined approach in the new A-to-Z Guarantee. This is a departure from the current practice of buyers contacting vendors directly about issues.
Amazon facing a lawsuit for goods that led to problems with customers
Several goods sold on Amazon have enraged customers in recent years. For instance, carbon monoxide detectors, hoverboards, and dog collars sold on the platform have caused customer issues. This has prompted a lawsuit, dubbed "Oberdorf v. Amazon," in which the firm is being sued for damages caused by goods supplied by third parties. Amazon claims to be a marketplace for other merchants rather than a seller.
According to conditions of use, Amazon says that when buyers buy from the merchants, they buy directly from the third party and not Amazon. As a result, Amazon doesn't assume any liability or responsibility for third parties' content, product, and actions. However, in a move to protect merchants from invalid claims and keep customers satisfied, the company is assuming liability.