So, how does Amazon know you're not lying? If they lower the threshold enough to pull products, people would just game the system (not that it isn't happening now) to pull their competitors products off of Amazon.

The good news is that the solution can come from the community. Aren't we all startup people here? But the bad news is that very few people are willing to put their money where their mouth is. People rail on about Big Corp screwing over the little guy. But supporting the 'little guy' companies means buying products that are made by smaller non-established companies. Sometimes doing things "right" means paying employees more benefits, having higher product safety standards, sourcing raw materials ethically, etc all of which adds to the cost of doing business. That money has to come from all of us buying those products.