Amazon announced on Tuesday it would compensate customers who suffer injury or property damage from faulty goods sold by others on its U.S. platform in a new regulation that could prevent further litigation.
Several consumers have sued the world’s largest online retailer over the years, claiming it is liable if a merchant sells bad products on Amazon.
Amazon claims that the sellers themselves are to blame, and the majority of cases filed against the retail giant have ruled in its favor.
Starting September 1, Amazon will pay valid claims of up to $1,000, covering more than 80% of injury and damage claims on its platform, at no cost to sellers, and it may offer more help if sellers are unresponsive.
The online retail giant has also introduced the Amazon Insurance Accelerator, a network of insurance providers that sellers can join, and an updated policy that requires more retailers to get product liability insurance, which Amazon itself does not offer.
For more information, read the original story in Reuters.