Provides that an electronic marketplace provider shall be deemed to be a retailer for purposes of New York strict liability law and shall be strictly liable for all damages caused by defective products placed into the stream of commerce to the same extent that a retailer of that defective product would be liable.
Impact
If enacted, S09769 could significantly change the landscape of consumer protection within New York's digital marketplace. By holding electronic marketplace providers liable, the bill aims to enhance accountability and encourage these platforms to ensure the safety and quality of goods sold through their services. This shift may lead to providers implementing more stringent checks and balances on the products listed to minimize potential liabilities, which could, in turn, secure a more reliable shopping experience for consumers.
Summary
Bill S09769 seeks to amend the general obligations law in New York to establish the liability of electronic marketplace providers for damages arising from defective products sold through their platforms. This legislation designates electronic marketplace providers as retailers under strict liability law, meaning they would be held responsible for defects in goods sold to the same extent as traditional retailers. The intent of this bill is to provide better protection for consumers purchasing products in a digital marketplace, ensuring that they can seek compensation for any damages caused by these defective items.
Contention
While there is a substantial push for the bill from consumer advocacy groups that emphasize the need for consumer protection, there are notable points of contention among stakeholders. Concerns have been raised regarding the potential burden on small electronic marketplace providers, who may face challenges in absorbing liability costs associated with the sales made by third-party sellers on their platforms. Additionally, the bill outlines certain exceptions under which providers would not be liable, such as when the products sold are second-hand or handmade, which brings about discussions regarding the balance between consumer protection and support for small businesses.