Amazon Faces Liability as Marketplace ‘Seller,’ 3d Cir. Rules

The Third Circuit is the first federal appeals court to hold that Amazon.com Inc. is a product “seller” that can be held liable under state law for sales on its marketplace.

In a divided July 3 ruling, the court said Amazon is subject to liability under Pennsylvania law for an eye injury that was allegedly caused by a retractable leash recoiling from a defective dog collar sold on the company’s website.

Pennsylvania uses guidelines used by some other states as well, so the Third Circuit’s reasoning could be applied more widely.

The Communications Decency Act protects Amazon from injured plaintiff ...