[HN Gopher] Legislation would unmask third-party sellers, but Am...
       ___________________________________________________________________
        
       Legislation would unmask third-party sellers, but Amazon is
       fighting it
        
       Author : ProAm
       Score  : 140 points
       Date   : 2021-06-11 16:22 UTC (6 hours ago)
        
 (HTM) web link (arstechnica.com)
 (TXT) w3m dump (arstechnica.com)
        
       | eigenvector wrote:
       | An important and related fact, addressed in the article, is that
       | Amazon currently escapes consumer product liability laws because
       | they are neither seller nor manufacturer. But they also cannot
       | tell you with any degree of precision who the seller or
       | manufacturer is.
       | 
       | There is a public interest in making /someone/ liable for
       | defective products, as it provides a incentive for sellers to do
       | due diligence on what they sell.
       | 
       | The party most able to root out sellers of defective or
       | counterfeit goods is probably Amazon, but they currently have no
       | incentive to do so as the liability is offloaded to judgement-
       | proof Marketplace sellers.
       | 
       | Amazon's business innovation here is figuring out how to run a
       | multi billion dollar retail business without product liability,
       | and that's negative for society.
        
         | wahern wrote:
         | At least in California they _are_ liable in tort:
         | https://www.natlawreview.com/article/another-court-gets-hove...
         | 
         | > California's Court of Appeal (Second Appellate District)
         | determined that Amazon could be held strictly liable for
         | injuries a consumer suffered from a defective hoverboard she
         | bought from the retailer, even though Amazon neither
         | manufactured nor sold the product.
         | 
         | > The plaintiff in this latest case, Kisha Loomis, bought a
         | hoverboard through the Amazon marketplace. The Amazon
         | marketplace carries both products sold by Amazon and by third
         | parties. In this case, the hoverboard was sold by a Chinese
         | company called SMILETO.
         | 
         | > The Court of Appeal... [held] that a party who has control
         | over and is integral to the chain of commerce, and receives a
         | financial benefit from it, is strictly liable for injury caused
         | by a product's defects.
        
           | Animats wrote:
           | Oh, that's important, and new. Here's the actual decision in
           | Loomis vs. Amazon.[1] Amazon has been fighting that case
           | since 2016, and last April, they lost at the appellate level
           | in California. But the plaintiff hasn't won damages yet; the
           | case will now be sent back to the LA Superior Court where
           | discovery will continue; a trial date is expected to be set
           | in 2022.
           | 
           | So, in California, you can now make product liability claims
           | against Amazon, despite their terms and conditions.
           | 
           | [1] https://cases.justia.com/static/pdf-
           | js/web/?file=/california...
        
           | jimmaswell wrote:
           | So Wal Mart is liable for defective products in California
           | too?
        
             | wahern wrote:
             | Yes, ever since the 1960s, actually. In fact, California
             | was the first state[1] to adopt strict product liability.
             | See https://en.wikipedia.org/wiki/Product_liability#Landmar
             | k_leg... Most U.S. states and many other countries have
             | since adopted California's regime. So California courts
             | extending their common law strict product liability
             | doctrine to encompass Amazon's marketplace is quite a
             | noteworthy precedent.
             | 
             | [1] And the first jurisdiction globally, I think.
        
               | jimmaswell wrote:
               | Sounds like a big risk reselling anything with any
               | potential to go wrong in California, or at least
               | insurance premiums will be very high.
        
               | wahern wrote:
               | Not just in California, but in most of the U.S. and E.U.
               | 
               | But if you weren't yourself negligent, you can recover
               | your losses from an upstream supplier. In practice it's
               | manufacturers or importers who bear most of the insurance
               | cost.
               | 
               | The whole point of the doctrine is that someone injured
               | by a faulty product shouldn't have to hunt down the
               | negligent party, who may have chosen to sell through a
               | byzantine supply chain in order to protect themselves.
               | Similarly, a downstream _seller_ shouldn 't be free to
               | benefit from such an arrangement, either. IOW, retailers
               | and other sellers should (and because of strict product
               | liability do) have some responsibility to choose their
               | suppliers wisely.
               | 
               | Note that at least conceptually strict liability lessens
               | the need for centralized product regulation. By making
               | recovery for actual damages more efficient, there's less
               | need for government to try to prevent negligence
               | beforehand. And at least in theory that makes it _easier_
               | for industry to innovate--to take calculated risks. Alas,
               | the U.S. doesn 't embrace this potential as well as it
               | could.
        
               | Dracophoenix wrote:
               | What counts as a supplier as far as California is
               | considered? If someone sells a non-functional piece of
               | equipment via Ebay, how does that work? Unlike Amazon
               | ,which some argue is closer to a store, Ebay is an open
               | market where you're buying the product as is and not as
               | an SKU. When does caveat emptor become a consideration?
        
               | wahern wrote:
               | Strict product liability usually only applies to
               | commercial sellers. That doesn't directly answer your
               | question, but suffice it to say there are bodies of law
               | that exist to answer that question. It's certainly not a
               | new question as flea markets, garage sales, charity
               | drives, and many other situations long predate Amazon and
               | eBay.
        
               | throwawayboise wrote:
               | They would likely just need to show "reasonable and
               | prudent" attention to what they are selling. Electrical
               | appliances UL listed, that sort of thing. Selling
               | mainstream brands and not nameless Chinese products is
               | another layer of defense. IANAL.
        
         | bena wrote:
         | So basically, Amazon is a large parking lot where they're
         | charging a booth fee for the largest grey farmers' market in
         | existence.
        
         | babypuncher wrote:
         | I feel like the offloaded liability is just a technicality and
         | is a poor lack of incentive for Amazon to do anything. Sure,
         | the product was sold by a non-Amazon third party, but from the
         | user perspective the defective product was purchased on Amazon.
         | The company can deflect blame to the marketplace sellers all
         | they want, but it's still Amazon's reputation that receives the
         | most lasting damage.
        
           | aidenn0 wrote:
           | I am wondering if Amazon is immune to reputational damage
           | though. People have been complaining about counterfeit and
           | defective products from Amazon for about 5 years now, and it
           | doesn't seem to have had significant effect on market share.
           | 
           | I've been disentangling my purchasing habits from Amazon, but
           | I don't know too many other people who are.
        
             | reportingsjr wrote:
             | I don't think the majority of people care about quality. I
             | think most focus mainly on price.
             | 
             | See Walmart for an example of this. They force
             | manufacturers of otherwise decent stuff to make lower
             | quality versions of products to sell only at Walmart, just
             | to lower the end price.
             | 
             | Considering that Walmart is one of the largest companies in
             | the world, this seems to be a winning tactic.
        
               | oblio wrote:
               | People only care about quality for a very few select
               | goods in their lives. Most of them are of hedonistic
               | nature and/or are publicly visible so are a status
               | symbol.
               | 
               | Everything else will be as cheap as can be bought (so
               | probably 90% of purchases).
        
             | chiefgeek wrote:
             | Same here. It isn't easy. I dropped Prime a couple years
             | ago. I think I placed five total orders last year, pandemic
             | and all.
        
             | throwawayboise wrote:
             | I don't buy anything from Amazon anymore, but I agree most
             | people I know haven't gone that far.
        
       | walrus01 wrote:
       | I recently purchased a set of full ear headphones with boom
       | microphone from Amazon. From a 'five star' reviewed product and
       | vendor. It came with a printed piece of paper in the box from the
       | vendor offering a $15 gift card if I left a five star review for
       | the product and then sent a screenshot to the company. Such shady
       | behavior.
       | 
       | The headphones are only average quality.
        
         | paulpauper wrote:
         | As many have already mentioned in prior discussions, 5-star
         | reviews are meaningless and Amazon does not care.
        
         | rStar wrote:
         | this has been going on for years. amazon benefits, so they
         | allow the practice.
        
         | whoza wrote:
         | I had a similar experience in April. I reported the seller to
         | Amazon, including lots of evidence (links to reviews by other
         | buyers complaining about the same thing, etc.) They assured me
         | that they would take care of it, but the product is still
         | available and it seems that nothing has changed.
        
           | ilamont wrote:
           | Yep. Widespread problem, as noted in this submission and
           | thread:
           | 
           | https://news.ycombinator.com/item?id=25459434
           | 
           | Once again, the good guys (customers and honest sellers) lose
           | out while the bad guys win, with no repercussions.
        
         | oh_sigh wrote:
         | I got one of those once, and wrote a review saying that this
         | seller is paying for 5 star reviews and even though the product
         | seemed fine, be wary of 5 star reviews. Amazon removed my
         | review as going against the terms of service.
        
           | zentiggr wrote:
           | Until Amazon has financial liability for fake/paid reviews,
           | they will never go away.
        
           | avidiax wrote:
           | Maybe leave the standard glowing 5-star review, plus a
           | picture of the headphones with the card visible.
        
         | frumper wrote:
         | I had a similar event happen with a product that cost $11.99
         | and they offered a $10 amazon gift card if I reviewed it. I did
         | like the product and left a review, and they emailed me a gift
         | card a week later. I was quite surprised. How does the business
         | side of that work?
        
           | avidiax wrote:
           | Easy, don't put that notice in every box, and don't expect
           | that everyone that receives the notice would bother filling
           | it out, and maybe once you are winding down that product,
           | start delaying or just not sending the gift cards.
           | 
           | You only need to keep ahead of the other items in the same
           | product category in terms of average score and review count.
           | That's public information, so it's pretty clear how many of
           | these gift cards you need to give out to top the category.
        
       | lucioperca wrote:
       | How is that even an issue for the HN-folks? This clearly takes
       | power away from amazon, as for example this helps with growing
       | business relations outside of amazon (you might start buying
       | directly from the seller at some point).
        
         | paxys wrote:
         | Everyone on this forum is a temporarily embarrassed big tech
         | founder/CEO who hates regulations which let the little guys
         | compete.
        
       | leipert wrote:
       | Germany just passed a law that forces Amazon, eBay (or any
       | platform) to be transparent about who you are buying from
       | (company / individuals). Additionally they need to be transparent
       | about how they rank search result and whether the results include
       | paid placements.
       | 
       | German source here: https://www.golem.de/news/bundestag-amazon-
       | und-ebay-zu-mehr-...
        
       | Clent wrote:
       | If the only argument is having to list a home address then a PO
       | Box resolves the privacy issue.
        
         | frumper wrote:
         | When I setup a small online business, that was one of the first
         | things I did. It doesn't cost much at all, and was very easy.
        
           | throwawayboise wrote:
           | In my experience, a "real" address is needed somewhere. PO
           | Boxes are fine for many things, but for process service, etc.
           | the part of your state government that is responsible for
           | business entities will want a real address.
        
             | technofiend wrote:
             | So you've never heard of competitive addressing, then.
             | 
             | Instead of PO BOX 1234, Anytown, ST USA you use Street
             | Address of Post Office, Unit # PO BOX Number, Anytown ST
             | USA.
             | 
             | In addition to giving you a "real" street address, it works
             | for any services unable to otherwise deliver to a PO BOX
             | like UPS, Fedex or DHL, because as long as they deliver
             | during business hours, the post office will sign for your
             | package.
             | 
             | I use this to great effect as package theft is so rampant
             | in my area. It does add a one day delay since the package
             | is signed for by my post office and not delivered into my
             | po box until the next day. And I've had to call and
             | complain to Amazon a few times until they stopped trying to
             | use their vans to deliver to that address. The drivers
             | rarely read the instructions that say "You must deliver
             | during business hours as this is a post office." When
             | Amazon actually ships via USPS to my po box I get the
             | packages same day as delivery so it's the best of all
             | scenarios. Really I don't know why people have a such hate
             | on for the post office. I love it.
             | 
             | https://postalpro.usps.com/mailing/competitivepoboxes
             | 
             | But yeah most likely a process server will leave the post
             | office frustrated. I'm not sure if that's a bug or a
             | feature. :-)
        
               | dimva wrote:
               | the USPS consistently has the highest favorability rating
               | of any government agency, at 91%:
               | https://federalnewsnetwork.com/agency-
               | oversight/2021/04/usps...
        
               | treeman79 wrote:
               | Impressive. Grew up when "Going postal" was a popular
               | expression due to how often postal workers went on
               | shooting rampages.
               | 
               | I recall efforts to reduce stress as apparently managers
               | were tired of being murdered.
               | 
               | Maybe new phrase will be "Going Amazon"
        
               | btilly wrote:
               | The reason for that was that the US government tried to
               | guarantee jobs for veterans. The one government task that
               | could use relatively uneducated but fit people no matter
               | where they happened to live was postal delivery. So a lot
               | of veterans with PTSD and weapons training wound up as
               | postal delivery workers.
               | 
               | Veterans with PTSD and weapons training sometimes flip
               | out and shoot people.
        
               | skak wrote:
               | The only reason people on HN have hate for the post
               | office is they are influenced by capitalists who want
               | another industry to "disrupt." American oligarchs have
               | been declaring war on public services since the New Deal,
               | and over time American workers have sadly been
               | propagandized to buy into it.
               | 
               | As a result, the U.S. Post Office is not what it used to
               | be (it used to offer banking services!!!) but it's still
               | one of the best things we have left. Not to mention its
               | glowing record of equal employment.
        
               | sio8ohPi wrote:
               | As someone who loves to complain about the post office,
               | you're way overthinking it. There's no conspiracy. I just
               | hate spam.
        
               | AlexandrB wrote:
               | When I was a kid, I had a job delivering spam. A lot it
               | does not come from the post office but from other
               | delivery services.
        
               | pjc50 wrote:
               | Don't forget the people trying to destroy it so they can
               | prevent postal voting in certain counties.
        
               | handrous wrote:
               | Someone on HN once mentioned that anti-USPO plays are
               | likely aimed at "freeing up" all the prime real estate
               | the USPO owns in cities all over the country for private
               | buyers, which was the thing that finally made some people
               | and groups' evident hate and ill-wishing for the post
               | office make sense to me. I'm sure killing some
               | competition is also a factor for certain interests, but
               | that was never enough, I thought, to explain _all_ the
               | forces working against them.
        
               | skak wrote:
               | The real estate effort makes sense because it gives an
               | objective to organize around. In the case I made, I
               | should probably elaborate. I don't think there are many
               | groups of people wanting to take over mail delivery for
               | profit, or that those groups are terribly committed. I
               | think it more often serves as an ideological punching bag
               | that represents public services in general. The USPS is
               | often cited in arguments for why public healthcare
               | supposedly can never work, for example, despite it's
               | success in most developed nations. This depends on
               | attacking public services in general. Currently,
               | maintaining this sentiment for the private sector against
               | the public sector is important to the effort to withhold
               | IP of the coronavirus vaccine from the third world. IP
               | laws are often complained about by HN readers, but IP
               | itself is not. This conflict between regulation and
               | anarchy is an eternal contradiction in the
               | entrepreneurial pursuit, but public services which serve
               | working people equally are ideologically beyond the pale,
               | enemies of the entrepreneurial spirit.
        
               | zentiggr wrote:
               | The inherent contradiction between
               | 
               | -- "let me do anything I want, I want to succeed and be
               | huge!"
               | 
               | -- "make sure I can stop anyone that wants to do the same
               | thing, I want to be the only one to succeed and be huge!"
        
               | sneak wrote:
               | Replace "disrupt" with "replace with an improved version"
               | and you have accurately characterized my view.
               | 
               | The USPS does an absolutely terrible job, by objective
               | measure. Many of their locations are significantly
               | understaffed, with 30-60 minute waits for basic services
               | (for paying customers!). Rude, unhelpful employees are
               | the norm.
               | 
               | Why should package and letter delivery be a public
               | service? Their approach is not working.
        
               | brendoelfrendo wrote:
               | With the exception of wait times for in-person service, I
               | don't really get the impression that the USPS does a
               | worse job than any other delivery service. Mail arrives
               | consistently, on time, and at competitive prices.
               | 
               | > Why should package and letter delivery be a public
               | service?
               | 
               | Because everyone needs equal access to those services.
               | Everyone, no exceptions, regardless of how profitable it
               | is or not.
        
               | midasuni wrote:
               | > Because everyone needs equal access to those services.
               | Everyone, no exceptions, regardless of how profitable it
               | is or not.
               | 
               | I can see that argument about food, water, healthcare,
               | maybe even electricity and internet but postal services?
               | It's pretty low down the "need" pyramid.
        
               | sneak wrote:
               | > _Mail arrives consistently, on time, and at competitive
               | prices._
               | 
               | That's absolutely not true in most parts of their
               | coverage area, especially the extremely dense ones (for
               | example in Manhattan). With FedEx, it is.
               | 
               | > _Because everyone needs equal access to those services.
               | Everyone, no exceptions, regardless of how profitable it
               | is or not._
               | 
               | This, even if we take its premise on faith, seems like an
               | argument for subsidy, not necessarily a publicly operated
               | service like the USPS. Food access is required for all
               | people but we don't have government farms, we give people
               | food credits. We have private hospitals and Medicaid, for
               | another example.
               | 
               | I'm also not sold on the idea that in 2021 (that is,
               | email, webapps, and government subsidized smartphones
               | with browsers and government subsidized network service)
               | that equal access to postal mail is the necessity it once
               | was. Many services now are unusable without an email
               | address, and while they require a postal address the
               | stuff there can be ignored forever if you can access the
               | website and receive email.
        
               | spfzero wrote:
               | For most shipments in the weight categories I use, USPS
               | is the least expensive. It's as reliable as Fed Ex or UPS
               | in my experience. I do go into the post office fairly
               | regularly, and have a PO box as well. Everyone's nice
               | enough, they can answer pretty much any question you
               | have. They're experienced, career employees, rather than
               | franchisees. Yes, you usually have to wait in line for
               | some things, but they have kiosks for simple tasks.
               | 
               | I'm sure others will have had other anecdotal
               | experiences, both bad and good, that's just the nature of
               | a large organization. I've lived in several different
               | cities over time and USPS has been consistently fine.
        
               | OldHand2018 wrote:
               | > But yeah most likely a process server will leave the
               | post office frustrated. I'm not sure if that's a bug or a
               | feature. :-)
               | 
               | It's probably one of those things that starts as a
               | feature and quickly morphs into a really, really big bug.
        
               | sneak wrote:
               | The part of this that is news to me (I have long known
               | about using the street address of the post office with
               | #BOXNUMBER, and used this to get driver's licenses in the
               | past) is that they will now accept UPS/FedEx shipments to
               | a PO box when addressed in this manner.
               | 
               | For a long time, the USPS would simply refuse to accept
               | deliveries from competitors, which always struck me as
               | the utmost in anticompetitive, non-interoperable-by-
               | design bullshit. I'm glad to hear they have stopped.
        
             | Scoundreller wrote:
             | It's more expensive, but a lawyer can serve that role.
        
             | treeman79 wrote:
             | A bus stop is a valid address for some things.
        
       | IG_Semmelweiss wrote:
       | For anyone believing amazon's claim that servicing vendor
       | complaints of copycats/trademark infringers was a "hard" problem
       | 
       | I give you exhibit A.
       | 
       | Its not hard. Amazon is just not interested in fixing it
        
       | RcouF1uZ4gsC wrote:
       | This whole legislation is a huge waste of time as a way to fight
       | fraud and fake products. Do you really expect the consumer to try
       | to track down some person via their address (which may be a PO
       | Box) and try to sue them, only to have them say their merchandise
       | was actually mixed with others and so they are not liable?
       | 
       | The much better version is to make Amazon fully liable for
       | everything they sell, even third party merchandise. Amazon can
       | then figure out what it needs to do to fix the issue. Consumers
       | shouldn't have to worry about it.
        
         | notriddle wrote:
         | I don't expect consumers to track down fake Ball lids and Apple
         | chargers. I expect Ball and Apple to do that.
        
           | HarryHirsch wrote:
           | In civilized countries you have consumer watchdogs that deal
           | with fraud and unsafe products so the consumer doesn't have
           | to. The point of the law isn't to catch criminals, it's to
           | prevent crime.
        
             | zo1 wrote:
             | The watchdogs can't do anything because the sellers are
             | essentially spam themselves. That is why Amazon has NNN
             | thousand new "stores" opening everyday and why they have a
             | billion variations of the exact same product. There is NO
             | way that any sort of entity outside of Amazon can make
             | heads or tails of that volume of data in order protect the
             | consumer.
             | 
             | And Amazon is complicit in this just as much as Aliexpress
             | and all the other platforms that are enabling product spam
             | coming from China.
        
             | paulpauper wrote:
             | consumer watchdogs are useless. the only good deterrent
             | against fraud is jail time
        
           | rdtwo wrote:
           | I expect amazon to not sell them and to get as sued by Apple
           | and Ball if they do
        
           | spfzero wrote:
           | So it would make sense that Ball and Apple would need to find
           | out who the seller was, from Amazon. Amazon at least knows
           | where to send the checks, and likely a lot more about these
           | businesses.
           | 
           | What bothers me about Amazon is that they are actively
           | providing anonymity to enterprises engaged in consumer-
           | hostile activities including fraud, and are resisting efforts
           | to pierce the shield they are providing.
        
         | [deleted]
        
         | tomschlick wrote:
         | > Do you really expect the consumer to try to track down some
         | person via their address
         | 
         | Product manufacturers track these unauthorized sellers and do
         | pretty deep investigations into who they are to stop
         | counterfeit / unauthorized distribution.
         | 
         | Source: I worked on software that tracked pricing and
         | unauthorized sellers for 4 years.
        
           | blairanderson wrote:
           | Very FEW product manufacturers track these unauthorized
           | sellers. Amazon should require the store name to MATCH the
           | llc/corp name and they should require a US registered agent
           | to be publicly displayed as well.
           | 
           | Source: I actively manage about 30 different vendor/seller
           | accounts as a consultant. Tracking sellers is a fools errand.
        
             | tomschlick wrote:
             | That's absolutely false in my experience. I can't speak for
             | who I worked for or our large client list, but there were
             | quite a few fortune 50/100 companies in there, and many
             | many others monitoring MAP and unauthorized sellers.
             | Tooling to track down unauthorized sellers was one of the
             | top features that was requested and used.
             | 
             | You'll often see sites like Amazon match the pricing of a
             | smaller unauthorized seller. Amazon's response to a MAP
             | enforcement email in that case is when you stop the other
             | guy, we will go back to MAP. So it is very important to
             | stay on top of those sellers.
        
         | watertom wrote:
         | Amazon doesn't want to be liable for ANYTHING, they just want
         | to sell stuff and make money any way they can.
         | 
         | The business/GOP view of the world is that responsibility is
         | for individuals not corporations. Freeing corporations so they
         | can do whatever they want without fear.
        
           | [deleted]
        
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