Ruling Against Amazon May Prove Broader Blow to Its Business Model

  • Retailer can be held liable as ‘seller’ of defective product
  • If widely applied, decision could breach its liability defense

  

Photographer: Bess Adler/Bloomberg
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A federal court ruling that Amazon.com Inc. can be held liable for a dog collar sold on its website that partly blinded a woman could complicate the online merchant’s business if it is applied broadly.

The Third Circuit Court of Appeals, in Philadelphia, overturned a judge’s decision that Amazon was shielded under the Communications Decency Act, which protects online businesses from lawsuits over the postings of their users.