Amazon will introduce a policy it hopes decreases lawsuits from customers who purchased harmful products through its U.S. platform.
According to Reuters, the company said it would compensate customers who purchased goods from third-party sellers that resulted in injuries or property damage. Beginning Sept. 1, Amazon will pay valid claims of up to $1,000.
The payment comes at no cost to sellers.
Amazon has been the recipient of lawsuits over the years regarding such products but claims the sellers are the ones responsible.
Courts have agreed in the past including when Texas’ highest court said Amazon was not liable for a purchased third-party product, a swallowed remote control battery that gave a toddler esophageal burns.
Amazon also introduced Amazon Insurance Accelerator which consists of insurance providers sellers can utilize. Amazon is not offering the insurance itself.
