Amazon is paying consumers up to $1,000 for defective product claims

by Jeremy

Amazon typically addresses consumer complaints about defective products by directing customers to third-party sellers, essentially avoiding any liability. Soon, the retail giant will directly handle the resolution of customer complaints relating to property damage and personal injury.

The company has updated its two-decade-old A-to-Z guarantee to make it easier for consumers to be compensated if they’ve been harmed by a third-party product sold through Amazon, assuming the claim is valid. The A-to-Z guarantee is Amazon’s returns policy that aims to protect consumers from defective products.

Starting September 1, customers can directly address their concerns to Amazon, and the company will notify the seller concerned about the claim. Of course, the online retailer will verify the complaints using a mix of its abuse detection system and independent fraud experts. If proven to be valid, the claim will be forwarded to the seller. The company has also introduced its new Amazon Insurance Accelerator to help sellers choose the right insurance policy from trusted providers.

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Amazon vows to directly bear the cost of claims less than $1,000 without pursuing the seller. The company noted that this represents more than 80% of cases. In situations where valid claims for higher amounts go unanswered or rejected, Amazon may step in to directly compensate the affected consumer and seek separate reimbursement from the seller. The rejection can also be appealed if customers believe their claim has been wrongly denied, while sellers can also defend their product against invalid claims.

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