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Amazon announced that starting on September 1, it will provide up to $1,000 to resolve issues with faulty and defective products sold by third-party vendors on its site. Currently, consumers must deal with the third-party vendor directly when filing claims of personal injury or property damage due to a defective product.
Under the new policy, customers will be able to file a complaint with Amazon directly, and the company will help resolve the issue. To streamline the process, Amazon said it would provide up to $1,000 to solve the claim and then deal with the third-party vendor to resolve the issue.
"We stand behind our customers, sellers, and the hundreds of millions of safe and compliant products offered in our store. With our expanded A-to-z Guarantee, we're proud to continue providing customers peace of mind every time they shop in our store and to help our sellers increase sales and grow their businesses," the company said in a blog post explaining the new policy.
Amazon has been under fire from customers, lawmakers, and regulators following numerous reports of dangerous, counterfeit, and fault products being sold through its third-party marketplace. Last month, the U.S. Consumer Product Safety Commission filed a lawsuit against Amazon, accusing the company of failing to remove products that are dangerous or defective. The lawsuit cited several examples including, flammable children's clothing, carbon monoxide detectors that didn't work, and potentially hazardous hair dryers.