Today since the build of consumers are on Amazon if you are a retailer you need to be one Amazon, and if you want access to Prime Customer you need to use Fulfillment by amazon, Where now you loose control over your supply chain due to co-mingled inventory
So even if I have a stellar reputation as A+AcmeMerchant, and customers look for my store on amazon they are not guaranteed to get the product that I sent to amazon, no they could get JoeBobScammers Product even though it was sold "by me" and fulfilled by amazon
So I will not go as far as to say amazon should be liable for ALL sales, but I do agree that any Sale that is shipped from an Amazon Warehouse they should be liable for. They choose to comingle all of their inventory they should face the liability
As I understand it Amazon isn’t liable which to me makes no sense as it relates to defective products (everyone in the supply chain of a defective product should be jointly and severely liable).
I don’t care if it’s a 3rd party seller, Amazon should be liable as it hosts the product for sale, connects buyer/seller, processes payments, typically stores (and commingled) the products, and probably delivers the product.
The thing about punitive damages is they are a punishment, so eventually there will be a case where The jury hears how Amazon knowingly and willfully continued selling 3rd party items it knew were fake and dangerous (Fake DOT helmets; expired baby formula; fake baby car seats; exploding electronics; etc...)and the jury is going to drop the hammer. Even billions In punitive damages wouldn’t be a surprise, Amazon will appeal and it will come down to 10’s or 100’s of millions, but that’s when they will take real action to stop this. But it’s going to take time for this to happen.