Giant online retailer and technology company Amazon Inc. (AMZN) says that it will be paying customers who suffer injuries or property damages due to defective goods sold on its United States platform.
The company announced this following introduction of a new policy that could reduce litigation, however, Amazon insists it does not admit liability.
Over the years, Amazon has been sued over and over by customers who argue that the e-commerce giant should be liable when a merchant sells bad products on its platform. Take for example in 2016, when a lady from Pennsylvania blamed Amazon for a merchant’s retractable dog leash that blinded her eye when it snapped.
The company strongly maintains that the sellers on its platform are solely responsible for any bad products and this argument has been supported by various courts which have ruled in favor of the company on numerous occasions when Amazon has been sued on such matters.
Amazon says that starting from September 1, it will be paying valid claims of up to $1,000 at no cost to the sellers. Such claims make up to 80% of the total injury and damages cases from its platform.
The company further says it might take more measures when the sellers are unresponsive as it aims to better protect its clients and sellers using this new policy.