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More Accountability is Needed for Amazon

More accountability is needed for Amazon

 

This week’s article will focus on a legal battle my firm is currently engaged in with Amazon. On Nov. 28, 2015, our client purchased, through Amazon, a hoverboard for her son for Christmas. The hoverboard was manufactured by a Chinese company, TurnUpUp. On Dec. 16, 2015, the hoverboard arrived. The shipping label said that it had been shipped by Forrinix Technology, a company in Alhambra, California. The hoverboard was opened on Christmas and enjoyed throughout the holiday. On New Year’s Eve, after a day of play, the hoverboard was plugged in to charge overnight. When the mother heard a noise coming from her son’s bedroom and went to investigate, she saw that the hoverboard was burning intensely like a firework, and the bed and bedroom were on fire. During the fire, our client suffered severe burns, and the bedroom sustained heavy fire damage. The cause of the fire was determined to be exploding lithium ion batteries.

Unbeknownst to our client and the rest of the world, Amazon had knowledge of a rash of hoverboard fires. Amazon had sold over 400,000 hoverboards in the weeks leading up to Christmas. It had over 60,000 separate listings for hoverboards at the peak of the season. Amazon had been receiving reports of fires associated with hoverboards around the world. According to testimony I obtained during a deposition of the head of Amazon’s Product Safety and Recalls Team, Mr. Jones, by mid-November 2015, Amazon was “monitoring” hoverboard fire issues, reviewing cases from as far back as January 2014. As Christmas approached, Amazon was in almost daily contact with the United States Consumer Products Safety Commission (CPSC) passing along reports of fires that Amazon had received from its customers.

Indeed, the CPSC had asked Amazon to monitor and report all hoverboard fires as Amazon was the largest single seller of these products in the U.S. and Amazon could directly communicate with purchasers. By Nov. 20, 2015, Amazon was aware that Costco, concerned for the safety of its customers, had pulled hoverboards from their shelves and stopped selling them to the public. Because of concern over fires, on Dec. 4, 2010, Amazon had pulled all hoverboard listings from its United Kingdom sales platform but kept selling them in the U.S. Finally, on Dec. 10, 2015, Doug Herrington, head of Amazon’s North American retail business, made the decision to remove all third-party sellers’ hoverboards from its website because of complaints “of hoverboards/batteries catching fire or exploding, or of sparking battery charges for hoverboards,” and because of concerns that the reports “might be indicative of safety issues of these products across Chinese manufacturing.” Over 60,000 separate listings were taken down from Amazon’s “marketplace.”

Although Amazon stopped selling hoverboards, Amazon neither stopped delivery of those in transit, nor did our client receive any notice from Amazon about the potential for fire.

Under California law, anyone or any enterprise in the “chain of distribution” between the manufacturer and the retailer can be held liable for injuries caused by the product. This makes everybody who is involved in the sale of the product is responsible for making sure the products are safe, which is a benefit to every consumer. They can inspect them, reject them, research them and otherwise determine if they are suitable for sale.

Additionally, they are in the best position to purchase insurance, which can cover injuries caused to consumer and at a fraction the cost of that among the many products they sell, thereby increasing the price only slightly while incorporating the true costs of the product into its sales price. If the true costs, including insurance, make the product too expensive, then application of free market principles should lead to it being discontinued from sale. This increases the cost a few pennies spread across all who use the product, which is fairer than having one injured person bear all the costs and losses associated with the product when they are injured. That is, in effect, a subsidy. (OK, I am revealing what I learned in one of my degrees involving law and economics.)

Amazon claims it is not in the chain of distribution: it is just a new form of classified advertising. This is BS. Amazon is the largest single seller of products. In its own documentation, Amazon calls itself a retailer. It gets paid a posting fee for each item listed. Amazon completely controls the content of each posting and has the right to edit and delete it. Buyers and sellers must communicate only through Amazon, and they cannot contact each other directly. The financial transaction is handled through Amazon. Amazon takes a percentage of every product sold, including shipping. Any product difficulties or complaints must go through Amazon. If a product is returned, Amazon charges the seller a return fee. Amazon offers an A-Z guaranty saying it will make the customer satisfied, including a refund, even if the manufacturer goes out of business. And now Amazon has fulfillment centers where it keeps stock on hand to satisfy orders.

Amazon has changed the landscape of our world, causing people to lose retail jobs by the hundreds of thousands. Amazon is one of the most valuable companies in the world. It must step up and be responsible corporate citizens instead of just not caring what it sells and if the consumer gets hurt.

To change this, I am working with the Consumer Attorneys of California to get a law passed, which would make Amazon just as responsible as any other retailer when the products it sells cause harm. It’s part of what I think a lawyer representing injured people should do: protect their rights and fight against corporate greed.

Christopher B. Dolan is owner of the Dolan Law Firm. Email questions and topics for future articles to help@dolanlawfirm.com.

We serve clients across the San Francisco Bay Area and California from our offices in San Francisco, Oakland, and Los Angeles. Our work is no recovery, no fee or also referred to as contingency-based. That means we collect no fee unless we obtain money for your damages and injuries.

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How Driving Speeds Correspond To Pedestrian Injuries And Deaths

When you’re a pedestrian, you should be aware that walking near roads and across intersections puts you at risk of being in an accident. If you’re hit, there’s a risk you could suffer serious injuries or be killed. While you can always seek compensation when a negligent driver hits you, it’s important to know the risks you face when you’re around local traffic. What’s the likelihood you’ll be injured in a crash?

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Dangerous Intersection Presents Risk of Injury to Pedestrians

This article was written by Chris Dolan and published by The San Francisco Examiner. Click here to read more of Chris Dolan’s weekly articles at SFExaminer.com.

Usually I respond to questions which are asked by Examiner Readers.

This week I am going to provide readers a warning about what I believe is a dangerous intersection: Fell and Van Ness. Crossing east or west on Fell over Van Ness presents a serious risk of harm or death to pedestrians because of the fact that there is no pedestrian signal which provides pedestrians information as to when it is safe to cross (white pedestrian) unsafe to cross (red pedestrian) or countdown information like that which exists at most major intersections including that just a block down the street at Market and Van Ness. I will be sending a copy of this article to Dennis Herrera, our City Attorney, Mayor Ed Lee, Supervisor Jane Kim, (Supervisor for District 6), and David Chiu, State Assembly Member for San Francisco. As Van Ness is State Highway 101, I will also send a letter to Bijan Sartipi, CalTrans District 4 Director.

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Multi-vehicle wreck on Highway 12 leaves one dead

Monday morning began with a multi-vehicle wreck which left one person dead, and eight injured on Highway 12.

According to the Vacaville Reporter the pileup on Highway 12 east of Napa happened when the driver of a Ford Taurus crossed the center divide into the path of an oncoming Cal Fire tractor-trailer. The Taurus was then hit by a minivan carrying six passengers as it careened back across the road. The Cal Fire trailer also struck another car.

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Fatalities in two accidents involving Motorcycle, Fuel Tanker

Two separate fatal accidents occurred in Northern California in a span of 12 hours.

A 23 year old man from Santa Rosa was killed in a trucking accident Tuesday night when his car was struck by a tanker loaded with gasoline on state Highway 128 in southern Mendocino County, according to the California Highway Patrol.

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MUNI Cited for Violating Safety Codes and Endangering Riders

The Public Utilities Commission reported last month that the San Francisco Municipal Transportation Agency has repeatedly violated state, federal, and various safety codes, endangering Muni passengers and resulting in unsafe operations. Inspectors conducted over twenty inspections between July 2009 and January 2011, and found track deterioration, malfunctions with automatic train control, poor maintenance, and failure to implement safety procedures. The CPUC also expressed concern over the failure of Muni officials to respond promptly to these concerns.

According to the San Francisco Chronicle, “Muni officials said they felt blindsided by the report but believe that once all the facts are out the agency will be exonerated.” Things don’t look so great for Muni, though, with other reports coming out about drivers that seriously neglect their duties by speeding or even sleeping on the job. With so many violations of safety code, Muni is going to have a lot of work to bring their service up to standard.

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Fatal Motorcycle Crash on Highway 101 in downtown Santa Rosa

CHP report that this morning at approximately 9:00 a.m. a motorcyclist collided with a van in the southbound lanes of Highway 101 just north of the Mendocino Avenue overpass. According to police, the motorcyclist was pronounced dead at the scene of the accident.

Initial reports are still coming in, so no determination has yet been made as to the cause of the accident, or whether there is comparative fault on behalf of the rider and the driver of the van. What is known is that in two thirds of all multiple vehicle motorcycle accidents, the accident occurred as a result of the other vehicle violating the motorcyclist right of way. Our thoughts and prayers go out to the family and friends of the victim in this incident.

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San Francisco Bicyclist Killed in Collision with Muni Bus

A bicyclist was killed yesterday evening, October 7th, in a collision with a Muni bus. The accident occurred at around 5PM at the corner of 6th and Clement in the Richmond district. The Muni bus involved was the 44 O’Shaughnessy. The bicyclist, declared dead at the scene, was described as a white male, age 25 to 30. The SFPD say he has not yet been identified.

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CHP Reviewing Pursuit Policy

According to a recent San Jose Mercury Article, the California Highway Patrol is considering reviewing its police pursuit policy. In the last few months, crash after crash involving the California Highway Patrol has turned public sentiment against the current CHP high speed chase policy. The latest incident occurred this morning, November 4th, when a car fleeing from the CHP in East Oakland collided with another vehicle. The pursuit started on Interstate 580 near 150th Avenue in San Leandro. The fleeing suspect exited the freeway during the chase and the pursuit continued through city streets in East Oakland until the suspect crashed into another vehicle at 106th Avenue and MacArthur Boulevard, killing both drivers.

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Personal Car Sharing: Revenue Stream or Liability Nightmare?

A new bill signed into law by Gov. Schwarzenegger last week and taking effect January 1st will permit Californians to share their personal cars in carsharing pools without risking the loss of their personal auto insurance coverage. The new law aims to make clear that personal vehicle sharing does not constitute a commercial use of the vehicle. The law also aims to make sure that the individual car owner is not held liable for losses that arise when the vehicle is used for personal vehicle sharing.

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