Amazon’s New Distributor Status Means Safety ‘Headache’ Ahead

Amazon.com Inc. is a “distributor” of many products sold on its web marketplace, responsible for reporting safety hazards and recalling dangerous products, a federal agency judge recently ruled—a determination that may forecast major financial and logistical obligations for it and other e-commerce companies.

The distributor label “could be a pretty big headache” for Amazon, said attorney Jeremy Robinson, who has litigated against the company on behalf of injured product users. Reporting, recalls, vetting suppliers, scanning for banned products, and inspecting products require money and staffing, he said.

The designation under federal law may have a leveling effect with traditional distributors ...