How Amazon Disrupted Product Liability
Two rulings are making it easier for insurers to subrogate damages for defective products sold through Amazon.
Amazon is the quintessential example of a modern-day “disrupter.” From books to electronics to groceries and media, the trillion-dollar behemoth has significantly impacted almost every sector of the economy. Perhaps less noteworthy to the general public, but significant to insurance professionals, is the impact Amazon has had on product liability law. The innovations that propelled Amazon past Walmart as the largest retailer in the world have called into question traditional understanding of what it means to be a “seller,” and specifically whether Amazon should be subject to seller liability for the products that third-party sellers list on Amazon.com.
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