Amazon Challenges CPSCs Authority, Claims Unconstitutional Structure in Quest for Legal Reclassification

Amazon has initiated legal action against the Consumer Product Safety Commission (CPSC) regarding its ruling to hold the corporation liable for defective goods sold on its marketplace, as reported by The Associated Press reports. The lawsuit requests that Amazon be recognized as a «third-party logistics provider» rather than a distributor, and it also labels the CPSC as «unconstitutionally structured.»

This legal battle traces back to 2021, when the CPSC filed a lawsuit against Amazon seeking to compel a recall of malfunctioning carbon monoxide detectors, unsafe hair dryers, and flammable children’s sleepwear. At that point, Amazon had already made attempts to mitigate the problems, such as alerting customers about the hazards of these products and offering store credits, but the CPSC insisted the company should take additional action.

The 2024 decision by the CPSC to classify Amazon as a distributor imposed on the company the responsibility of managing recalls and refunds for items sold under its Fulfilled by Amazon (FBA) scheme. This program allows sellers to send their merchandise to Amazon’s warehouses, from where Amazon manages the picking, packing, and shipping process to customers, including customer service and returns. Amazon contests this classification as a distributor since it does not manufacture or own the defective products cited by the CPSC, viewing itself more as an operational facilitator like FedEx.

In addition to seeking a reclassification to alleviate its responsibility for further refunds, Amazon expresses concerns regarding the CPSC itself. The commissioners of the CPSC are appointed by the President, confirmed by the Senate, and serve for seven years unless removed for «neglect of duty or misconduct.» Amazon argues that this relative immunity of the commission is unconstitutional and positions them as «judge, jury, and prosecutor» in their proceedings.

Amazon has made comparable assertions about the National Labor Review Board, which oversees the protection of workers’ rights to organize. The timing of these allegations is significant. The Trump administration has shown little interest in supporting any government agency with regulatory authority over businesses, likely favoring Amazon in diminishing the power of the CPSC.