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In what world does this not just become a contractually required insurance policy covering Amazon, paid for by the third party. Granted, whoever pays in name,
by greggyb 6y ago
In what world does this not just become a contractually required insurance policy covering Amazon, paid for by the third party.
Granted, whoever pays in name, the cost will be passed on to consumers.
- kshacker 6y agoWell, maybe, maybe not. At least, it incentivizes Amazon to chase the culprits. The question is whether that incentive is big enough for them to fix / improve things.
- bloaf 6y agoIf Amazon can get sued every time someone burns themselves with a knockoff product, I would think their incentives would shift from: "Pay as little as possible for quality assurance, down to a floor of $0" to "Pay as little as possible for quality assurance, down to a floor of $whatever number would convince a court that we made a good faith effort to prevent knockoffs."
- pm24601 6y agoStrict liability means that Amazon is liable for any defective product no matter how "hard" they tried
- jcrawfordor 6y agoOn the upside, specialized insurance companies tend to be pretty thorough in managing their risk of paying out. Meaning that third parties will probably have a hard time operating a counterfeit scam on any scale, once an insurer pays out all the others will find out and refuse to underwrite. Insurers would likely also require a proactive anti-counterfeit program for their larger clients.
- justapassenger 6y agoAmazon wants to have all the benefits but no responsibility of being one of the largest commerce businesses in the world. As Amazon customer, who had its fair share of bad experiences with items in recent years, I'm ok with prices going up. I've never used Amazon because of the prices, but because of comfort and safety. I'm willing to pay extra to get this back.
- dd36 6y agoThe the insurers perform the due diligence and that liability cost should’ve been there from the start.