The CPSC and Amazon: Navigating a Shifting Regulatory Landscape
Despite recent leadership and other changes at the agency, the U.S. Consumer Product Safety Commission (the 鈥淐PSC鈥� or 鈥淐ommission鈥�) has maintained its focus on regulating e-commerce platforms that facilitate large-volume imports from foreign manufacturers directly to U.S. consumers.1 On July 29, 2024, and January 16, 2025, the CPSC advanced this priority by issuing orders classifying Amazon鈥攖he largest e-marketplace鈥攁s a 鈥渄istributor鈥� under the Consumer Product Safety Act (CPSA). Under these orders, the CPSC asserts that Amazon is responsible for hazardous products sold through its Fulfilled by Amazon (鈥淔BA鈥�) program.
In response, in March 2025, Amazon filed suit against the CPSC in the United States District Court for the District of Maryland. Amazon challenges both the constitutionality and the scope of the Commission鈥檚 actions.
This lawsuit comes at an interesting time鈥攖he Supreme Court having recently abandoned Chevron deference, directing lower courts to employ greater scrutiny towards agencies, and as the Trump Administration challenges the 鈥渇or cause鈥� protections historically afforded to CPSC Commissioners and other heads of independent federal agencies. How these parallel actions will impact Amazon鈥檚 case against the CPSC is tough to tell. With this many moving pieces, it will be quite some time before the dust settles.
- The CPSC鈥檚 Case Against Amazon
- The Fulfilled by Amazon Program and Distributor Status under the CPSA
Amazon鈥檚 lawsuit stems from the , wherein the Commission alleged that Amazon is a 鈥渄istributor鈥� under the CPSA, with respect to its Fulfilled by Amazon (FBA) program. Under Section 15 of the CPSA, manufacturers, distributors, and retailers must 鈥渋mmediately inform the Commission鈥� of any product that:
- 鈥渇ails to comply with an applicable consumer product safety rule . . . ;
- fails to comply with any other rule, regulation, standard, or ban . . . enforced by the Commission;
- contains a defect which would create a substantial product hazard . . . ; or
- creates an unreasonable risk of serious injury or death.鈥� 2, 3
If a business 鈥渒nowingly鈥�4 violates Section 15鈥檚 reporting requirements, the CPSA imposes hefty civil penalties of up to $120,000 per knowing violation and $17,150,000 for a series of related violations.5 In addition to financial penalties, companies may be required to notify consumers and conduct recalls in coordination with the CPSC. Thus, with such a designation, Amazon could be responsible for any hazardous product sold on its platform.
Since its inception in the early 2000s, Amazon has asserted the 鈥渢hird-party logistics provider鈥� exemption, set forth in Section 3(b) of the CPSA, with respect to the FBA program. This exemption鈥攐riginally designed to protect carriers like UPS and FedEx鈥攅xcludes from Section 15鈥檚 reporting obligations those entities that merely receive, hold, or transport goods without taking title to them. Historically, Amazon maintained that the FBA program provided similar logistics and shipping services; nothing more. Namely, it allows independent third-party sellers to list products on Amazon鈥檚 e-commerce platform while outsourcing storage, packaging, and shipping to Amazon鈥檚 logistics network. According to Amazon, this likened the FBA Program to UPS鈥檚 global shipping network. In 2024, however, the CPSC made clear why it disagreed.
B. The Fulfilled by Amazon Program and Distributor Status under the CPSA
In its July 2024 in the administrative action, the Commission found that Amazon 鈥渇it squarely within the definition of distributor under the CPSA.鈥� 6 It emphasized that Amazon鈥檚 role extended well beyond storage and delivery. Specifically, the Commission noted that Amazon:
- Stored products in its warehouses;
- Controlled product listings and fulfillment processes;
- Processed customer payments and remitted funds to sellers after deducting fees;
- Managed customer service, returns, and refunds; and
- Offered technology tools and logistical support that shaped the entire transaction.
According to the Commission, this degree of operational control meant that Amazon was not simply hosting transactions鈥攊t was materially participating in the distribution of products and introducing them into commerce, meaning the company falls within the CPSA鈥檚 definition of a 鈥渄istributor.鈥�
From the CPSC鈥檚 perspective, this designation of Amazon as a distributor means that Amazon is now responsible for hazardous and/or non-compliant products sold through its FBA platforms. As a distributor, Amazon would have a duty to report dangerous products to the CPSC, notify consumers of safety issues, and cooperate in issuing recalls and offering remedies such as refunds, repairs, or replacements.
C. Amazon鈥檚 Appeal
In March 2025, Amazon appealed the Commission鈥檚 decision to the United States District Court for the District of Maryland, advancing the same arguments it made during the CPSC enforcement action. First, Amazon contends that the CPSC鈥檚 interpretation of the CPSA is unlawful, arguing that the agency鈥檚 recall orders require remedies for products 鈥渕anufactured, owned, and sold by third parties鈥濃�攃onduct that, in Amazon鈥檚 view, falls outside the CPSA鈥檚 statutory scope. Second, Amazon claims the CPSC violated the Administrative Procedure Act by requiring it to oversee additional recalls and notifications, noting it already contacted affected buyers twice and fully refunded purchases in 2021 and 2022. According to Amazon, the Commission鈥檚 demand for yet another round of notices and refunds is arbitrary. Third, Amazon asserts that the Decision and Order is unconstitutional because the five commissioners who voted to proceed with the administrative action and approve the Decision and Order acted as 鈥渏udge, jury, and prosecutor鈥� in the same proceeding, thereby depriving Amazon of an impartial tribunal.
In decades past, the likelihood of success on these arguments would be slim to none. For four decades, under Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., courts were required to defer to an agency鈥檚 reasonable interpretation of ambiguous statutory provisions when taking official agency action.7 As a result, courts typically upheld agency actions, like the CPSC鈥檚 Decision and Order related to Amazon鈥檚 FBA Program, unless the court found such agency action was 鈥渁rbitrary and capricious.鈥� That landscape shifted in June 2024, when the Supreme Court overturned Chevron in Loper Bright Enterprises v. Raimondo. There, the Supreme Court held that courts reviewing agency actions must 鈥渆xercise independent judgment in determining the meaning of statutory provisions,鈥� even when those provisions are ambiguous.8 Without Chevron deference, the CPSC鈥檚 Decision and Order鈥攁nd, more specifically, whether the CPSC has the authority to even make that Decision and Order in the first instance鈥攆aces closer judicial scrutiny.
II. A Moment of Regulatory Change
While the CPSC has pursued Amazon for years, Amazon鈥檚 appeal of the Commission鈥檚 Decision and Order comes at a unique time.
With the Supreme Court having recently dismantled Chevron deference, directing lower courts to employ greater scrutiny towards agencies, and the Trump Administration challenging the 鈥渇or cause鈥� protections historically afforded to CPSC Commissioners and other heads of independent federal agencies, it is unclear how these parallel actions will impact Amazon鈥檚 case against the CPSC. The CPSC is scheduled to file a motion for summary judgment in the Amazon litigation on October 1, 2025, where it will have to defend its authority to regulate the e-commerce platform. The decision on that motion should provide some clarity, but it will be quite some time before any overall resolution.
At present, the CPSC continues to implement all executive orders and directives while maintaining robust enforcement efforts consistent with its core mission of protecting the public. Despite recent leadership and other changes at the CPSC, the Commission remains very active, recently announcing a 鈥�Record-Breaking Week鈥� of enforcement action against Chinese manufacturers concerning products .
麻豆直播 & Lardner鈥檚 Consumer Product team continues to monitor these and other CPSC-related developments. For information on how this litigation may affect your company鈥檚 interactions with the CPSC, please contact us.
1 See statement from : 鈥淭he plan now designates e-commerce platforms as a top enforcement priority. Direct-to-consumer platforms . . . have grown significantly in the past year. Under this provision, the agency recommits itself to providing consistent enforcement and changing e-commerce landscape.鈥�
2 15 U.S.C. 搂 2064(b).
3 鈥淪ubstantial Product Hazard鈥� is further defined as 鈥渁 product defect which (because of the pattern of defect, the number of defective products distributed in commerce, the severity of the risk, or otherwise) creates a substantial risk of injury to the public.鈥� 15 U.S.C. 搂 2064(a)(2).
4 The CPSIA defines 鈥渒nowingly鈥� as either 鈥渁ctual knowledge鈥� or 鈥渒nowledge deemed to be possessed by a reasonable man who acts in the circumstances, including knowledge obtainable upon the exercise of due care to ascertain the truth of representations.鈥� 15 U.S.C. 搂 2064(b).
5 15 U.S.C. 搂 2068; Civil Penalties; Notice of Adjusted Maximum Amounts, 86 Fed. Reg. 68244 (Dec. 1, 2021) (available at: ) (adjusting the maximum amount of civil penalties for inflation).
6 In re Amazon, CPSC Docket No. 21-2 (July 29, 2024) at 26.
7 467 U.S. 837 (1984).
8 Loper Bright Enterprises v. Raimondo, No. 22-451 (June 28, 2024), together with Relentless, Inc. v. Department of Commerce.