Amazon, Online Markets Face Reckoning in California Product Case

An injured hoverboard owner’s victory this week in an appeals court in California has powerful implications for Amazon.com Inc.‘s liability in the state, for its internal practices, and potentially for other online marketplaces like eBay Inc. and Etsy Inc., attorneys and others say.

Amazon can be held liable under California law for Kisha Loomis’ burn injuries, allegedly caused by a defective hoverboard that the company offered on its web marketplace but didn’t store, handle, or ship, the California Court of Appeal, Second Appellate District, said.

The case expands Amazon’s potential liability under California law as found in ...