CENTERFORDATAINNOVATION1FromCarttoClaim:AddressingProductLiabilityinOnlineMarketplacesByBeccaTrate|June24,2024Whenadefectivepopcornmachinecatchesonfireandburnsdownahouse,thehomeowner’sfirstcallwillbetotheirlawyer,askingwhoisliableforthedamages.Buteveniftheycandemonstratetheharmandprovewhatcausedthefire,thehomeownermightbeleftoutinthecold,dependingonhowtheypurchasedtheirpopcornmachine.Stateproductliabilitylawstraditionallyholdmanufacturers,distributors,andsellersstrictlyliablefordefectiveproductstheybringtomarket.Asconsumersincreasinglymakepurchasesfromonlinemarketplaces—platformsthataggregateproductsfrommultiplethird-partysellers—newquestionsariseabouthowtobestprotectthemfromdefectiveproductsthatposearisktohealthandsafety.Stateproductliabilitylawsgenerallydonotholdonlinemarketplacesliablefordefectiveproductsthatcauseharm,becausethemarketplaceisonlyanintermediarythatconnectsbuyersandsellers.Moreover,third-partysellersononlinemarketplacesmaynotrespondtoaconsumer’scomplaints,disappearaftersellingadefectiveproduct,orignoreanylegalactiontakenagainstthemiftheyareoutsidetheauthorityofU.S.courts.Somepolicymakerswanttomakeonlinemarketplaceslegallyliableforharmfulproductssoldontheirplatforms.Underexistinglaw,severalfactorsmaydeterminewhetheranonlinemarketplaceisliablefordefectiveproducts,suchashowaplatformfulfillsa...
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