CA
California Assembly Bill AB3262

California 2019-2020 Regular Session

California Assembly Bill AB3262 Compare Versions

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1-Amended IN Senate August 24, 2020 Amended IN Senate August 20, 2020 Amended IN Senate August 13, 2020 Amended IN Senate August 05, 2020 Amended IN Senate July 16, 2020 Amended IN Assembly June 08, 2020 Amended IN Assembly May 04, 2020 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 3262Introduced by Assembly Member Mark Stone(Principal coauthor: Senator Jackson)(Coauthors: Assembly Members Gonzalez and Wicks)February 21, 2020 An act to add Section 1714.46 to the Civil Code, relating to civil liability. LEGISLATIVE COUNSEL'S DIGESTAB 3262, as amended, Mark Stone. Product liability: electronic retail marketplaces.Existing law imposes strict liability upon persons who place a defective product on the market, including retailers engaged in the business of distributing goods to the public, for injuries caused by the product. Existing law exempts a manufacturer or seller from liability, except as provided, in any action for injury or death caused by a product, other than an action based on a manufacturing defect or breach of an express warranty, if the product is inherently unsafe and the product is known to be unsafe by the ordinary consumer who consumes the product with the ordinary knowledge common to the community and the product is a common consumer product intended for personal consumption, as specified.This bill would require an electronic retail marketplace, as defined, to be held strictly liable, subject to certain exceptions, for all damages caused by defective products placed into the stream of commerce to the same extent as a retailer.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Over the past 10 years, online sales of consumer goods have increased from less than 5 percent of retail sales to more than 15 percent of all retail sales in the United States. In recognition that the percentage of retail sales that are online is expected to continue to increase and that over $600 billion in online sales occurred in 2019 in the United States, increasing dramatically during the COVID-19 pandemic, it is clear that electronic retail marketplaces play a substantial role in the distribution of goods to consumers in the State of California, whether or not they ever take physical possession of those goods. Furthermore, when manufacturers of products sold online are located in foreign countries, those manufacturers could be outside of the jurisdiction of the courts of the State of California. Under these circumstances, the consumer could be left with no recourse for damages caused by defective products made by foreign manufacturers unless the electronic retail marketplace that distributed the product is subject to liability for the defective product.(b) Under existing law a manufacturer, seller of goods, or other entity that is engaged in the business of distributing goods to the public is strictly liable in tort if a product they manufacture, sell, or distribute proves to have a defect that causes injury to a human being.(c) The purpose of that liability is to ensure that the costs of injuries resulting from defective products are borne by the manufacturers, sellers, and other entities that are engaged in the business of distributing goods to the public, rather than by the injured consumers.(d) Under existing law, the elements of a strict liability action are all of the following:(1) The product was used in an intended or reasonably foreseeable manner.(2) The product was in a defective condition when it left the defendants possession.(3) The defective product was the legal cause of the plaintiffs injuries or damages.(e) There is uncertainty how to apply strict product liability law to electronic retail marketplaces. As a result, some injured consumers who purchase products through electronic retail marketplaces are unable to obtain compensation for their injuries from the entities that manufactured, distributed, or sold the products, thereby defeating the compensatory purpose of strict liability law.(f) Unless this uncertainty is addressed in favor of compensating injured consumers, more and more companies will forego selling products through physical stores where strict product liability principles would require compensation. Instead, manufacturers, distributors, and sellers will emphasize electronic retail marketplace sales of possibly defective and injurious products thereby increasing the financial burdens on consumers, public health systems, and private and public insurers who, alone or in combination, will unjustly have to pay for the cost of treating and healing injuries without contribution from those that actually caused the harm or profited from the manufacture, sale, or distribution of the defective product. Furthermore, the electronic retail marketplace may be the only member of the enterprise reasonably available to the injured consumer. In other cases the electronic retail marketplace may be in a position to exert pressure on manufacturers to ensure that their products are safe. In this way, strict liability of the electronic retail marketplace serves as an incentive to safety and the lack of such liability creates an increased risk of defective products being sold to consumers. Strict liability on the manufacturer and the electronic retail marketplace alike affords maximum protection to the injured plaintiff and works no injustice to the electronic retail marketplace or manufacturer as they can adjust the costs of such protection between them in the course of their business relationship.(g) Under existing law, magazines, newspapers, and broadcasters are not subject to strict products liability when they accept revenue for advertisements for products that are defective and cause harm. Therefore, it is the intent of the Legislature that revenue accepted for online advertisements that are the equivalent of advertisements accepted by magazines, newspapers, or broadcasters, without further facilitation of the placement of products into the stream of commerce, are not considered a financial benefit for purposes of this act.SEC. 2. Section 1714.46 is added to the Civil Code, to read:1714.46. (a) Consistent with the policy considerations underlying the doctrine of strict products liability of enhancing product safety, maximizing protection to the injured plaintiff, and apportioning costs among defendants, an electronic retail marketplace 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 and shall be deemed to be a retailer for purposes of California strict liability law. The liability of an electronic retail marketplace shall be equal to, but not greater than, the liability of a retailer as provided in Vandermark v. Ford Motor Co. (1964) 61 Cal.2d 256, and all defenses to strict liability that are available to a retailer under California law shall be preserved for an electronic retail marketplace.(b) An electronic retail marketplace shall not be liable as described in subdivision (a) if any of the following conditions are met:(1) The product that caused the damage was one of the following:(A) Preowned or used and prominently described or prominently advertised on the electronic retail marketplace as preowned or used at the time it was purchased by the consumer.(B) Handmade.(2) The electronic retail marketplace did not receive a direct or indirect financial benefit from the sale of the defective product that caused the injury. A fee that is exclusively for an advertisement is not a financial benefit from the sale of the defective product.(3) The sale or transaction of the product occurred by auction and is exempt from strict liability, as described in Tauber-Arons Auctioneers Co. v. Superior Court (1980) 101 Cal.App.3d 268.(c) Notwithstanding subdivision (b), an electronic retail marketplace shall be strictly liable for the sale of preowned, used, handmade, or auctioned defective products if the application of strict liability to the electronic retail marketplace is consistent with the policy considerations underlying strict liability.(d) As used in this section, the following definitions apply:(1) Electronic retail marketplace means an electronic place or internet website that is engaged in the business of placing or facilitating the placement of products into the stream of commerce in this state, regardless of whether the vendor, product, or the marketplace has a physical presence in the state or whether, as described in Canifax v. Hercules Powder Co. (1965) 237 Cal.App.2d 44, 52, the electronic retail marketplace ever takes physical possession of the product. Electronic retail marketplace includes any subsidiaries or related party companies, including, but not limited to, any company that would constitute an affiliated group under Section 1504 of the Internal Revenue Code.(2) Handmade means a product that conforms to all applicable state and federal consumer health and safety laws and is made by the vendor in the primary residence of the vendor, so long as the vendors sales of handmade products generate less than fifty thousand dollars ($50,000) per year in revenues.(3) Product means a tangible good that is subject to strict product liability law.(4) Vendor means the manufacturer, distributor, seller, or supplier of the product. Vendor does not include the electronic retail marketplace.(e) This section does not limit the provisions of existing law that make manufacturers, distributors, sellers, retailers, and suppliers of products strictly liable for the safety of those products and prohibit the sale of products that violate state or federal health or safety laws.
1+Amended IN Senate August 20, 2020 Amended IN Senate August 13, 2020 Amended IN Senate August 05, 2020 Amended IN Senate July 16, 2020 Amended IN Assembly June 08, 2020 Amended IN Assembly May 04, 2020 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 3262Introduced by Assembly Member Mark Stone(Principal coauthor: Senator Jackson)(Coauthors: Assembly Members Gonzalez and Wicks)February 21, 2020 An act to add Section 1714.46 to the Civil Code, relating to civil liability. LEGISLATIVE COUNSEL'S DIGESTAB 3262, as amended, Mark Stone. Product liability: electronic retail marketplaces.Existing law imposes strict liability upon persons who place a defective product on the market, including retailers engaged in the business of distributing goods to the public, for injuries caused by the product. Existing law exempts a manufacturer or seller from liability, except as provided, in any action for injury or death caused by a product, other than an action based on a manufacturing defect or breach of an express warranty, if the product is inherently unsafe and the product is known to be unsafe by the ordinary consumer who consumes the product with the ordinary knowledge common to the community and the product is a common consumer product intended for personal consumption, as specified.This bill would require an electronic retail marketplace, as defined, to be held strictly liable, subject to certain exceptions, for all damages caused by defective products placed into the stream of commerce to the same extent as a retailer.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Over the past 10 years, online sales of consumer goods have increased from less than 5 percent of retail sales to more than 15 percent of all retail sales in the United States. In recognition that the percentage of retail sales that are online is expected to continue to increase and that over $600 billion in online sales occurred in 2019 in the United States, increasing dramatically during the COVID-19 pandemic, it is clear that electronic retail marketplaces play a substantial role in the distribution of goods to consumers in the State of California, whether or not they ever take physical possession of those goods. Furthermore, when manufacturers of products sold online are located in foreign countries, those manufacturers could be outside of the jurisdiction of the courts of the State of California. Under these circumstances, the consumer could be left with no recourse for damages caused by defective products made by foreign manufacturers unless the electronic retail marketplace that distributed the product is subject to liability for the defective product.(b) Under existing law a manufacturer, seller of goods, or other entity that is engaged in the business of distributing goods to the public is strictly liable in tort if a product they manufacture, sell, or distribute proves to have a defect that causes injury to a human being.(c) The purpose of that liability is to ensure that the costs of injuries resulting from defective products are borne by the manufacturers, sellers, and other entities that are engaged in the business of distributing goods to the public, rather than by the injured consumers.(d) Under existing law, the elements of a strict liability action are all of the following:(1) The product was used in an intended or reasonably foreseeable manner.(2) The product was in a defective condition when it left the defendants possession.(3) The defective product was the legal cause of the plaintiffs injuries or damages.(e) There is uncertainty how to apply strict product liability law to electronic retail marketplaces. As a result, some injured consumers who purchase products through electronic retail marketplaces are unable to obtain compensation for their injuries from the entities that manufactured, distributed, or sold the products, thereby defeating the compensatory purpose of strict liability law.(f) Unless this uncertainty is addressed in favor of compensating injured consumers, more and more companies will forego selling products through physical stores where strict product liability principles would require compensation. Instead, manufacturers, distributors, and sellers will emphasize electronic retail marketplace sales of possibly defective and injurious products thereby increasing the financial burdens on consumers, public health systems, and private and public insurers who, alone or in combination, will unjustly have to pay for the cost of treating and healing injuries without contribution from those that actually caused the harm or profited from the manufacture, sale, or distribution of the defective product. Furthermore, the electronic retail marketplace may be the only member of the enterprise reasonably available to the injured consumer. In other cases the electronic retail marketplace may be in a position to exert pressure on manufacturers to ensure that their products are safe. In this way, strict liability of the electronic retail marketplace serves as an incentive to safety and the lack of such liability creates an increased risk of defective products being sold to consumers. Strict liability on the manufacturer and the electronic retail marketplace alike affords maximum protection to the injured plaintiff and works no injustice to the electronic retail marketplace or manufacturer as they can adjust the costs of such protection between them in the course of their business relationship.SEC. 2. Section 1714.46 is added to the Civil Code, to read:1714.46. (a) Except as provided in subdivision (b), Consistent with the policy considerations underlying the doctrine of strict products liability of enhancing product safety, maximizing protection to the injured plaintiff, and apportioning costs among defendants, an electronic retail marketplace 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 and shall be deemed to be a retailer for purposes of California strict liability law. The liability of an electronic retail marketplace shall be equal to, but not greater than, the liability of a retailer as provided in Vandermark v. Ford Motor Co. (1964) 61 Cal.2d 256, and all defenses to strict liability that are available to a retailer under California law shall be preserved for an electronic retail marketplace.(b) An electronic retail marketplace shall not be liable as described in subdivision (a) if any of the following conditions are met:(1) The product that caused the damage was one of the following:(A) Preowned or used and prominently described or prominently advertised on the electronic retail marketplace as preowned or used at the time it was purchased by the consumer.(B) Handmade.(2) The electronic retail marketplace did not receive a direct or indirect financial benefit from the sale of the defective product that caused the injury. A fee that is exclusively for an advertisement is not a financial benefit from the sale of the defective product.(3) The sale or transaction of the product occurred by auction and is exempt from strict liability, as described in Tauber-Arons Auctioneers Co. v. Superior Court (1980) 101 Cal.App.3d 268.(c) Notwithstanding subdivision (b), an electronic retail marketplace shall be strictly liable for the sale of preowned, used, handmade, or auctioned defective products to the same extent that a retailer, because of its actions, would be liable for the sale of those goods. Those actions include, but are not limited to, promoting the product or leading a reasonable consumer to believe that the product is safe for its intended use. if the application of strict liability to the electronic retail marketplace is consistent with the policy considerations underlying strict liability.(d) As used in this section, the following definitions apply:(1) Electronic retail marketplace means an electronic place or internet website that is engaged in the business of placing products into the stream of commerce in this state, regardless of whether the vendor, product, or the marketplace has a physical presence in the state or whether, as described in Canifax v. Hercules Powder Co. (1965) 237 Cal.App.2d 44, 52, the electronic retail marketplace ever takes physical possession of the product. Electronic retail marketplace includes any subsidiaries or related party companies, including, but not limited to, any company that would constitute an affiliated group under Section 1504 of the Internal Revenue Code.(2) Handmade means a product that conforms to all applicable state and federal consumer health and safety laws and is made by the vendor in the primary residence of the vendor, so long as the vendors sales of handmade products generate less than fifty thousand dollars ($50,000) per year in revenues.(3) Product means a tangible good that is subject to strict product liability law.(4) Vendor means the manufacturer, distributor, seller, or supplier of the product. Vendor does not include the electronic retail marketplace.(e) This section does not limit the provisions of existing law that make manufacturers, distributors, sellers, retailers, and suppliers of products strictly liable for the safety of those products and prohibit the sale of products that violate state or federal health or safety laws.
22
3- Amended IN Senate August 24, 2020 Amended IN Senate August 20, 2020 Amended IN Senate August 13, 2020 Amended IN Senate August 05, 2020 Amended IN Senate July 16, 2020 Amended IN Assembly June 08, 2020 Amended IN Assembly May 04, 2020 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 3262Introduced by Assembly Member Mark Stone(Principal coauthor: Senator Jackson)(Coauthors: Assembly Members Gonzalez and Wicks)February 21, 2020 An act to add Section 1714.46 to the Civil Code, relating to civil liability. LEGISLATIVE COUNSEL'S DIGESTAB 3262, as amended, Mark Stone. Product liability: electronic retail marketplaces.Existing law imposes strict liability upon persons who place a defective product on the market, including retailers engaged in the business of distributing goods to the public, for injuries caused by the product. Existing law exempts a manufacturer or seller from liability, except as provided, in any action for injury or death caused by a product, other than an action based on a manufacturing defect or breach of an express warranty, if the product is inherently unsafe and the product is known to be unsafe by the ordinary consumer who consumes the product with the ordinary knowledge common to the community and the product is a common consumer product intended for personal consumption, as specified.This bill would require an electronic retail marketplace, as defined, to be held strictly liable, subject to certain exceptions, for all damages caused by defective products placed into the stream of commerce to the same extent as a retailer.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
3+ Amended IN Senate August 20, 2020 Amended IN Senate August 13, 2020 Amended IN Senate August 05, 2020 Amended IN Senate July 16, 2020 Amended IN Assembly June 08, 2020 Amended IN Assembly May 04, 2020 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 3262Introduced by Assembly Member Mark Stone(Principal coauthor: Senator Jackson)(Coauthors: Assembly Members Gonzalez and Wicks)February 21, 2020 An act to add Section 1714.46 to the Civil Code, relating to civil liability. LEGISLATIVE COUNSEL'S DIGESTAB 3262, as amended, Mark Stone. Product liability: electronic retail marketplaces.Existing law imposes strict liability upon persons who place a defective product on the market, including retailers engaged in the business of distributing goods to the public, for injuries caused by the product. Existing law exempts a manufacturer or seller from liability, except as provided, in any action for injury or death caused by a product, other than an action based on a manufacturing defect or breach of an express warranty, if the product is inherently unsafe and the product is known to be unsafe by the ordinary consumer who consumes the product with the ordinary knowledge common to the community and the product is a common consumer product intended for personal consumption, as specified.This bill would require an electronic retail marketplace, as defined, to be held strictly liable, subject to certain exceptions, for all damages caused by defective products placed into the stream of commerce to the same extent as a retailer.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
44
5- Amended IN Senate August 24, 2020 Amended IN Senate August 20, 2020 Amended IN Senate August 13, 2020 Amended IN Senate August 05, 2020 Amended IN Senate July 16, 2020 Amended IN Assembly June 08, 2020 Amended IN Assembly May 04, 2020
5+ Amended IN Senate August 20, 2020 Amended IN Senate August 13, 2020 Amended IN Senate August 05, 2020 Amended IN Senate July 16, 2020 Amended IN Assembly June 08, 2020 Amended IN Assembly May 04, 2020
66
7-Amended IN Senate August 24, 2020
87 Amended IN Senate August 20, 2020
98 Amended IN Senate August 13, 2020
109 Amended IN Senate August 05, 2020
1110 Amended IN Senate July 16, 2020
1211 Amended IN Assembly June 08, 2020
1312 Amended IN Assembly May 04, 2020
1413
1514 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
1615
1716 Assembly Bill
1817
1918 No. 3262
2019
2120 Introduced by Assembly Member Mark Stone(Principal coauthor: Senator Jackson)(Coauthors: Assembly Members Gonzalez and Wicks)February 21, 2020
2221
2322 Introduced by Assembly Member Mark Stone(Principal coauthor: Senator Jackson)(Coauthors: Assembly Members Gonzalez and Wicks)
2423 February 21, 2020
2524
2625 An act to add Section 1714.46 to the Civil Code, relating to civil liability.
2726
2827 LEGISLATIVE COUNSEL'S DIGEST
2928
3029 ## LEGISLATIVE COUNSEL'S DIGEST
3130
3231 AB 3262, as amended, Mark Stone. Product liability: electronic retail marketplaces.
3332
3433 Existing law imposes strict liability upon persons who place a defective product on the market, including retailers engaged in the business of distributing goods to the public, for injuries caused by the product. Existing law exempts a manufacturer or seller from liability, except as provided, in any action for injury or death caused by a product, other than an action based on a manufacturing defect or breach of an express warranty, if the product is inherently unsafe and the product is known to be unsafe by the ordinary consumer who consumes the product with the ordinary knowledge common to the community and the product is a common consumer product intended for personal consumption, as specified.This bill would require an electronic retail marketplace, as defined, to be held strictly liable, subject to certain exceptions, for all damages caused by defective products placed into the stream of commerce to the same extent as a retailer.
3534
3635 Existing law imposes strict liability upon persons who place a defective product on the market, including retailers engaged in the business of distributing goods to the public, for injuries caused by the product. Existing law exempts a manufacturer or seller from liability, except as provided, in any action for injury or death caused by a product, other than an action based on a manufacturing defect or breach of an express warranty, if the product is inherently unsafe and the product is known to be unsafe by the ordinary consumer who consumes the product with the ordinary knowledge common to the community and the product is a common consumer product intended for personal consumption, as specified.
3736
3837 This bill would require an electronic retail marketplace, as defined, to be held strictly liable, subject to certain exceptions, for all damages caused by defective products placed into the stream of commerce to the same extent as a retailer.
3938
4039 ## Digest Key
4140
4241 ## Bill Text
4342
44-The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Over the past 10 years, online sales of consumer goods have increased from less than 5 percent of retail sales to more than 15 percent of all retail sales in the United States. In recognition that the percentage of retail sales that are online is expected to continue to increase and that over $600 billion in online sales occurred in 2019 in the United States, increasing dramatically during the COVID-19 pandemic, it is clear that electronic retail marketplaces play a substantial role in the distribution of goods to consumers in the State of California, whether or not they ever take physical possession of those goods. Furthermore, when manufacturers of products sold online are located in foreign countries, those manufacturers could be outside of the jurisdiction of the courts of the State of California. Under these circumstances, the consumer could be left with no recourse for damages caused by defective products made by foreign manufacturers unless the electronic retail marketplace that distributed the product is subject to liability for the defective product.(b) Under existing law a manufacturer, seller of goods, or other entity that is engaged in the business of distributing goods to the public is strictly liable in tort if a product they manufacture, sell, or distribute proves to have a defect that causes injury to a human being.(c) The purpose of that liability is to ensure that the costs of injuries resulting from defective products are borne by the manufacturers, sellers, and other entities that are engaged in the business of distributing goods to the public, rather than by the injured consumers.(d) Under existing law, the elements of a strict liability action are all of the following:(1) The product was used in an intended or reasonably foreseeable manner.(2) The product was in a defective condition when it left the defendants possession.(3) The defective product was the legal cause of the plaintiffs injuries or damages.(e) There is uncertainty how to apply strict product liability law to electronic retail marketplaces. As a result, some injured consumers who purchase products through electronic retail marketplaces are unable to obtain compensation for their injuries from the entities that manufactured, distributed, or sold the products, thereby defeating the compensatory purpose of strict liability law.(f) Unless this uncertainty is addressed in favor of compensating injured consumers, more and more companies will forego selling products through physical stores where strict product liability principles would require compensation. Instead, manufacturers, distributors, and sellers will emphasize electronic retail marketplace sales of possibly defective and injurious products thereby increasing the financial burdens on consumers, public health systems, and private and public insurers who, alone or in combination, will unjustly have to pay for the cost of treating and healing injuries without contribution from those that actually caused the harm or profited from the manufacture, sale, or distribution of the defective product. Furthermore, the electronic retail marketplace may be the only member of the enterprise reasonably available to the injured consumer. In other cases the electronic retail marketplace may be in a position to exert pressure on manufacturers to ensure that their products are safe. In this way, strict liability of the electronic retail marketplace serves as an incentive to safety and the lack of such liability creates an increased risk of defective products being sold to consumers. Strict liability on the manufacturer and the electronic retail marketplace alike affords maximum protection to the injured plaintiff and works no injustice to the electronic retail marketplace or manufacturer as they can adjust the costs of such protection between them in the course of their business relationship.(g) Under existing law, magazines, newspapers, and broadcasters are not subject to strict products liability when they accept revenue for advertisements for products that are defective and cause harm. Therefore, it is the intent of the Legislature that revenue accepted for online advertisements that are the equivalent of advertisements accepted by magazines, newspapers, or broadcasters, without further facilitation of the placement of products into the stream of commerce, are not considered a financial benefit for purposes of this act.SEC. 2. Section 1714.46 is added to the Civil Code, to read:1714.46. (a) Consistent with the policy considerations underlying the doctrine of strict products liability of enhancing product safety, maximizing protection to the injured plaintiff, and apportioning costs among defendants, an electronic retail marketplace 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 and shall be deemed to be a retailer for purposes of California strict liability law. The liability of an electronic retail marketplace shall be equal to, but not greater than, the liability of a retailer as provided in Vandermark v. Ford Motor Co. (1964) 61 Cal.2d 256, and all defenses to strict liability that are available to a retailer under California law shall be preserved for an electronic retail marketplace.(b) An electronic retail marketplace shall not be liable as described in subdivision (a) if any of the following conditions are met:(1) The product that caused the damage was one of the following:(A) Preowned or used and prominently described or prominently advertised on the electronic retail marketplace as preowned or used at the time it was purchased by the consumer.(B) Handmade.(2) The electronic retail marketplace did not receive a direct or indirect financial benefit from the sale of the defective product that caused the injury. A fee that is exclusively for an advertisement is not a financial benefit from the sale of the defective product.(3) The sale or transaction of the product occurred by auction and is exempt from strict liability, as described in Tauber-Arons Auctioneers Co. v. Superior Court (1980) 101 Cal.App.3d 268.(c) Notwithstanding subdivision (b), an electronic retail marketplace shall be strictly liable for the sale of preowned, used, handmade, or auctioned defective products if the application of strict liability to the electronic retail marketplace is consistent with the policy considerations underlying strict liability.(d) As used in this section, the following definitions apply:(1) Electronic retail marketplace means an electronic place or internet website that is engaged in the business of placing or facilitating the placement of products into the stream of commerce in this state, regardless of whether the vendor, product, or the marketplace has a physical presence in the state or whether, as described in Canifax v. Hercules Powder Co. (1965) 237 Cal.App.2d 44, 52, the electronic retail marketplace ever takes physical possession of the product. Electronic retail marketplace includes any subsidiaries or related party companies, including, but not limited to, any company that would constitute an affiliated group under Section 1504 of the Internal Revenue Code.(2) Handmade means a product that conforms to all applicable state and federal consumer health and safety laws and is made by the vendor in the primary residence of the vendor, so long as the vendors sales of handmade products generate less than fifty thousand dollars ($50,000) per year in revenues.(3) Product means a tangible good that is subject to strict product liability law.(4) Vendor means the manufacturer, distributor, seller, or supplier of the product. Vendor does not include the electronic retail marketplace.(e) This section does not limit the provisions of existing law that make manufacturers, distributors, sellers, retailers, and suppliers of products strictly liable for the safety of those products and prohibit the sale of products that violate state or federal health or safety laws.
43+The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Over the past 10 years, online sales of consumer goods have increased from less than 5 percent of retail sales to more than 15 percent of all retail sales in the United States. In recognition that the percentage of retail sales that are online is expected to continue to increase and that over $600 billion in online sales occurred in 2019 in the United States, increasing dramatically during the COVID-19 pandemic, it is clear that electronic retail marketplaces play a substantial role in the distribution of goods to consumers in the State of California, whether or not they ever take physical possession of those goods. Furthermore, when manufacturers of products sold online are located in foreign countries, those manufacturers could be outside of the jurisdiction of the courts of the State of California. Under these circumstances, the consumer could be left with no recourse for damages caused by defective products made by foreign manufacturers unless the electronic retail marketplace that distributed the product is subject to liability for the defective product.(b) Under existing law a manufacturer, seller of goods, or other entity that is engaged in the business of distributing goods to the public is strictly liable in tort if a product they manufacture, sell, or distribute proves to have a defect that causes injury to a human being.(c) The purpose of that liability is to ensure that the costs of injuries resulting from defective products are borne by the manufacturers, sellers, and other entities that are engaged in the business of distributing goods to the public, rather than by the injured consumers.(d) Under existing law, the elements of a strict liability action are all of the following:(1) The product was used in an intended or reasonably foreseeable manner.(2) The product was in a defective condition when it left the defendants possession.(3) The defective product was the legal cause of the plaintiffs injuries or damages.(e) There is uncertainty how to apply strict product liability law to electronic retail marketplaces. As a result, some injured consumers who purchase products through electronic retail marketplaces are unable to obtain compensation for their injuries from the entities that manufactured, distributed, or sold the products, thereby defeating the compensatory purpose of strict liability law.(f) Unless this uncertainty is addressed in favor of compensating injured consumers, more and more companies will forego selling products through physical stores where strict product liability principles would require compensation. Instead, manufacturers, distributors, and sellers will emphasize electronic retail marketplace sales of possibly defective and injurious products thereby increasing the financial burdens on consumers, public health systems, and private and public insurers who, alone or in combination, will unjustly have to pay for the cost of treating and healing injuries without contribution from those that actually caused the harm or profited from the manufacture, sale, or distribution of the defective product. Furthermore, the electronic retail marketplace may be the only member of the enterprise reasonably available to the injured consumer. In other cases the electronic retail marketplace may be in a position to exert pressure on manufacturers to ensure that their products are safe. In this way, strict liability of the electronic retail marketplace serves as an incentive to safety and the lack of such liability creates an increased risk of defective products being sold to consumers. Strict liability on the manufacturer and the electronic retail marketplace alike affords maximum protection to the injured plaintiff and works no injustice to the electronic retail marketplace or manufacturer as they can adjust the costs of such protection between them in the course of their business relationship.SEC. 2. Section 1714.46 is added to the Civil Code, to read:1714.46. (a) Except as provided in subdivision (b), Consistent with the policy considerations underlying the doctrine of strict products liability of enhancing product safety, maximizing protection to the injured plaintiff, and apportioning costs among defendants, an electronic retail marketplace 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 and shall be deemed to be a retailer for purposes of California strict liability law. The liability of an electronic retail marketplace shall be equal to, but not greater than, the liability of a retailer as provided in Vandermark v. Ford Motor Co. (1964) 61 Cal.2d 256, and all defenses to strict liability that are available to a retailer under California law shall be preserved for an electronic retail marketplace.(b) An electronic retail marketplace shall not be liable as described in subdivision (a) if any of the following conditions are met:(1) The product that caused the damage was one of the following:(A) Preowned or used and prominently described or prominently advertised on the electronic retail marketplace as preowned or used at the time it was purchased by the consumer.(B) Handmade.(2) The electronic retail marketplace did not receive a direct or indirect financial benefit from the sale of the defective product that caused the injury. A fee that is exclusively for an advertisement is not a financial benefit from the sale of the defective product.(3) The sale or transaction of the product occurred by auction and is exempt from strict liability, as described in Tauber-Arons Auctioneers Co. v. Superior Court (1980) 101 Cal.App.3d 268.(c) Notwithstanding subdivision (b), an electronic retail marketplace shall be strictly liable for the sale of preowned, used, handmade, or auctioned defective products to the same extent that a retailer, because of its actions, would be liable for the sale of those goods. Those actions include, but are not limited to, promoting the product or leading a reasonable consumer to believe that the product is safe for its intended use. if the application of strict liability to the electronic retail marketplace is consistent with the policy considerations underlying strict liability.(d) As used in this section, the following definitions apply:(1) Electronic retail marketplace means an electronic place or internet website that is engaged in the business of placing products into the stream of commerce in this state, regardless of whether the vendor, product, or the marketplace has a physical presence in the state or whether, as described in Canifax v. Hercules Powder Co. (1965) 237 Cal.App.2d 44, 52, the electronic retail marketplace ever takes physical possession of the product. Electronic retail marketplace includes any subsidiaries or related party companies, including, but not limited to, any company that would constitute an affiliated group under Section 1504 of the Internal Revenue Code.(2) Handmade means a product that conforms to all applicable state and federal consumer health and safety laws and is made by the vendor in the primary residence of the vendor, so long as the vendors sales of handmade products generate less than fifty thousand dollars ($50,000) per year in revenues.(3) Product means a tangible good that is subject to strict product liability law.(4) Vendor means the manufacturer, distributor, seller, or supplier of the product. Vendor does not include the electronic retail marketplace.(e) This section does not limit the provisions of existing law that make manufacturers, distributors, sellers, retailers, and suppliers of products strictly liable for the safety of those products and prohibit the sale of products that violate state or federal health or safety laws.
4544
4645 The people of the State of California do enact as follows:
4746
4847 ## The people of the State of California do enact as follows:
4948
50-SECTION 1. The Legislature finds and declares all of the following:(a) Over the past 10 years, online sales of consumer goods have increased from less than 5 percent of retail sales to more than 15 percent of all retail sales in the United States. In recognition that the percentage of retail sales that are online is expected to continue to increase and that over $600 billion in online sales occurred in 2019 in the United States, increasing dramatically during the COVID-19 pandemic, it is clear that electronic retail marketplaces play a substantial role in the distribution of goods to consumers in the State of California, whether or not they ever take physical possession of those goods. Furthermore, when manufacturers of products sold online are located in foreign countries, those manufacturers could be outside of the jurisdiction of the courts of the State of California. Under these circumstances, the consumer could be left with no recourse for damages caused by defective products made by foreign manufacturers unless the electronic retail marketplace that distributed the product is subject to liability for the defective product.(b) Under existing law a manufacturer, seller of goods, or other entity that is engaged in the business of distributing goods to the public is strictly liable in tort if a product they manufacture, sell, or distribute proves to have a defect that causes injury to a human being.(c) The purpose of that liability is to ensure that the costs of injuries resulting from defective products are borne by the manufacturers, sellers, and other entities that are engaged in the business of distributing goods to the public, rather than by the injured consumers.(d) Under existing law, the elements of a strict liability action are all of the following:(1) The product was used in an intended or reasonably foreseeable manner.(2) The product was in a defective condition when it left the defendants possession.(3) The defective product was the legal cause of the plaintiffs injuries or damages.(e) There is uncertainty how to apply strict product liability law to electronic retail marketplaces. As a result, some injured consumers who purchase products through electronic retail marketplaces are unable to obtain compensation for their injuries from the entities that manufactured, distributed, or sold the products, thereby defeating the compensatory purpose of strict liability law.(f) Unless this uncertainty is addressed in favor of compensating injured consumers, more and more companies will forego selling products through physical stores where strict product liability principles would require compensation. Instead, manufacturers, distributors, and sellers will emphasize electronic retail marketplace sales of possibly defective and injurious products thereby increasing the financial burdens on consumers, public health systems, and private and public insurers who, alone or in combination, will unjustly have to pay for the cost of treating and healing injuries without contribution from those that actually caused the harm or profited from the manufacture, sale, or distribution of the defective product. Furthermore, the electronic retail marketplace may be the only member of the enterprise reasonably available to the injured consumer. In other cases the electronic retail marketplace may be in a position to exert pressure on manufacturers to ensure that their products are safe. In this way, strict liability of the electronic retail marketplace serves as an incentive to safety and the lack of such liability creates an increased risk of defective products being sold to consumers. Strict liability on the manufacturer and the electronic retail marketplace alike affords maximum protection to the injured plaintiff and works no injustice to the electronic retail marketplace or manufacturer as they can adjust the costs of such protection between them in the course of their business relationship.(g) Under existing law, magazines, newspapers, and broadcasters are not subject to strict products liability when they accept revenue for advertisements for products that are defective and cause harm. Therefore, it is the intent of the Legislature that revenue accepted for online advertisements that are the equivalent of advertisements accepted by magazines, newspapers, or broadcasters, without further facilitation of the placement of products into the stream of commerce, are not considered a financial benefit for purposes of this act.
49+SECTION 1. The Legislature finds and declares all of the following:(a) Over the past 10 years, online sales of consumer goods have increased from less than 5 percent of retail sales to more than 15 percent of all retail sales in the United States. In recognition that the percentage of retail sales that are online is expected to continue to increase and that over $600 billion in online sales occurred in 2019 in the United States, increasing dramatically during the COVID-19 pandemic, it is clear that electronic retail marketplaces play a substantial role in the distribution of goods to consumers in the State of California, whether or not they ever take physical possession of those goods. Furthermore, when manufacturers of products sold online are located in foreign countries, those manufacturers could be outside of the jurisdiction of the courts of the State of California. Under these circumstances, the consumer could be left with no recourse for damages caused by defective products made by foreign manufacturers unless the electronic retail marketplace that distributed the product is subject to liability for the defective product.(b) Under existing law a manufacturer, seller of goods, or other entity that is engaged in the business of distributing goods to the public is strictly liable in tort if a product they manufacture, sell, or distribute proves to have a defect that causes injury to a human being.(c) The purpose of that liability is to ensure that the costs of injuries resulting from defective products are borne by the manufacturers, sellers, and other entities that are engaged in the business of distributing goods to the public, rather than by the injured consumers.(d) Under existing law, the elements of a strict liability action are all of the following:(1) The product was used in an intended or reasonably foreseeable manner.(2) The product was in a defective condition when it left the defendants possession.(3) The defective product was the legal cause of the plaintiffs injuries or damages.(e) There is uncertainty how to apply strict product liability law to electronic retail marketplaces. As a result, some injured consumers who purchase products through electronic retail marketplaces are unable to obtain compensation for their injuries from the entities that manufactured, distributed, or sold the products, thereby defeating the compensatory purpose of strict liability law.(f) Unless this uncertainty is addressed in favor of compensating injured consumers, more and more companies will forego selling products through physical stores where strict product liability principles would require compensation. Instead, manufacturers, distributors, and sellers will emphasize electronic retail marketplace sales of possibly defective and injurious products thereby increasing the financial burdens on consumers, public health systems, and private and public insurers who, alone or in combination, will unjustly have to pay for the cost of treating and healing injuries without contribution from those that actually caused the harm or profited from the manufacture, sale, or distribution of the defective product. Furthermore, the electronic retail marketplace may be the only member of the enterprise reasonably available to the injured consumer. In other cases the electronic retail marketplace may be in a position to exert pressure on manufacturers to ensure that their products are safe. In this way, strict liability of the electronic retail marketplace serves as an incentive to safety and the lack of such liability creates an increased risk of defective products being sold to consumers. Strict liability on the manufacturer and the electronic retail marketplace alike affords maximum protection to the injured plaintiff and works no injustice to the electronic retail marketplace or manufacturer as they can adjust the costs of such protection between them in the course of their business relationship.
5150
52-SECTION 1. The Legislature finds and declares all of the following:(a) Over the past 10 years, online sales of consumer goods have increased from less than 5 percent of retail sales to more than 15 percent of all retail sales in the United States. In recognition that the percentage of retail sales that are online is expected to continue to increase and that over $600 billion in online sales occurred in 2019 in the United States, increasing dramatically during the COVID-19 pandemic, it is clear that electronic retail marketplaces play a substantial role in the distribution of goods to consumers in the State of California, whether or not they ever take physical possession of those goods. Furthermore, when manufacturers of products sold online are located in foreign countries, those manufacturers could be outside of the jurisdiction of the courts of the State of California. Under these circumstances, the consumer could be left with no recourse for damages caused by defective products made by foreign manufacturers unless the electronic retail marketplace that distributed the product is subject to liability for the defective product.(b) Under existing law a manufacturer, seller of goods, or other entity that is engaged in the business of distributing goods to the public is strictly liable in tort if a product they manufacture, sell, or distribute proves to have a defect that causes injury to a human being.(c) The purpose of that liability is to ensure that the costs of injuries resulting from defective products are borne by the manufacturers, sellers, and other entities that are engaged in the business of distributing goods to the public, rather than by the injured consumers.(d) Under existing law, the elements of a strict liability action are all of the following:(1) The product was used in an intended or reasonably foreseeable manner.(2) The product was in a defective condition when it left the defendants possession.(3) The defective product was the legal cause of the plaintiffs injuries or damages.(e) There is uncertainty how to apply strict product liability law to electronic retail marketplaces. As a result, some injured consumers who purchase products through electronic retail marketplaces are unable to obtain compensation for their injuries from the entities that manufactured, distributed, or sold the products, thereby defeating the compensatory purpose of strict liability law.(f) Unless this uncertainty is addressed in favor of compensating injured consumers, more and more companies will forego selling products through physical stores where strict product liability principles would require compensation. Instead, manufacturers, distributors, and sellers will emphasize electronic retail marketplace sales of possibly defective and injurious products thereby increasing the financial burdens on consumers, public health systems, and private and public insurers who, alone or in combination, will unjustly have to pay for the cost of treating and healing injuries without contribution from those that actually caused the harm or profited from the manufacture, sale, or distribution of the defective product. Furthermore, the electronic retail marketplace may be the only member of the enterprise reasonably available to the injured consumer. In other cases the electronic retail marketplace may be in a position to exert pressure on manufacturers to ensure that their products are safe. In this way, strict liability of the electronic retail marketplace serves as an incentive to safety and the lack of such liability creates an increased risk of defective products being sold to consumers. Strict liability on the manufacturer and the electronic retail marketplace alike affords maximum protection to the injured plaintiff and works no injustice to the electronic retail marketplace or manufacturer as they can adjust the costs of such protection between them in the course of their business relationship.(g) Under existing law, magazines, newspapers, and broadcasters are not subject to strict products liability when they accept revenue for advertisements for products that are defective and cause harm. Therefore, it is the intent of the Legislature that revenue accepted for online advertisements that are the equivalent of advertisements accepted by magazines, newspapers, or broadcasters, without further facilitation of the placement of products into the stream of commerce, are not considered a financial benefit for purposes of this act.
51+SECTION 1. The Legislature finds and declares all of the following:(a) Over the past 10 years, online sales of consumer goods have increased from less than 5 percent of retail sales to more than 15 percent of all retail sales in the United States. In recognition that the percentage of retail sales that are online is expected to continue to increase and that over $600 billion in online sales occurred in 2019 in the United States, increasing dramatically during the COVID-19 pandemic, it is clear that electronic retail marketplaces play a substantial role in the distribution of goods to consumers in the State of California, whether or not they ever take physical possession of those goods. Furthermore, when manufacturers of products sold online are located in foreign countries, those manufacturers could be outside of the jurisdiction of the courts of the State of California. Under these circumstances, the consumer could be left with no recourse for damages caused by defective products made by foreign manufacturers unless the electronic retail marketplace that distributed the product is subject to liability for the defective product.(b) Under existing law a manufacturer, seller of goods, or other entity that is engaged in the business of distributing goods to the public is strictly liable in tort if a product they manufacture, sell, or distribute proves to have a defect that causes injury to a human being.(c) The purpose of that liability is to ensure that the costs of injuries resulting from defective products are borne by the manufacturers, sellers, and other entities that are engaged in the business of distributing goods to the public, rather than by the injured consumers.(d) Under existing law, the elements of a strict liability action are all of the following:(1) The product was used in an intended or reasonably foreseeable manner.(2) The product was in a defective condition when it left the defendants possession.(3) The defective product was the legal cause of the plaintiffs injuries or damages.(e) There is uncertainty how to apply strict product liability law to electronic retail marketplaces. As a result, some injured consumers who purchase products through electronic retail marketplaces are unable to obtain compensation for their injuries from the entities that manufactured, distributed, or sold the products, thereby defeating the compensatory purpose of strict liability law.(f) Unless this uncertainty is addressed in favor of compensating injured consumers, more and more companies will forego selling products through physical stores where strict product liability principles would require compensation. Instead, manufacturers, distributors, and sellers will emphasize electronic retail marketplace sales of possibly defective and injurious products thereby increasing the financial burdens on consumers, public health systems, and private and public insurers who, alone or in combination, will unjustly have to pay for the cost of treating and healing injuries without contribution from those that actually caused the harm or profited from the manufacture, sale, or distribution of the defective product. Furthermore, the electronic retail marketplace may be the only member of the enterprise reasonably available to the injured consumer. In other cases the electronic retail marketplace may be in a position to exert pressure on manufacturers to ensure that their products are safe. In this way, strict liability of the electronic retail marketplace serves as an incentive to safety and the lack of such liability creates an increased risk of defective products being sold to consumers. Strict liability on the manufacturer and the electronic retail marketplace alike affords maximum protection to the injured plaintiff and works no injustice to the electronic retail marketplace or manufacturer as they can adjust the costs of such protection between them in the course of their business relationship.
5352
5453 SECTION 1. The Legislature finds and declares all of the following:
5554
5655 ### SECTION 1.
5756
5857 (a) Over the past 10 years, online sales of consumer goods have increased from less than 5 percent of retail sales to more than 15 percent of all retail sales in the United States. In recognition that the percentage of retail sales that are online is expected to continue to increase and that over $600 billion in online sales occurred in 2019 in the United States, increasing dramatically during the COVID-19 pandemic, it is clear that electronic retail marketplaces play a substantial role in the distribution of goods to consumers in the State of California, whether or not they ever take physical possession of those goods. Furthermore, when manufacturers of products sold online are located in foreign countries, those manufacturers could be outside of the jurisdiction of the courts of the State of California. Under these circumstances, the consumer could be left with no recourse for damages caused by defective products made by foreign manufacturers unless the electronic retail marketplace that distributed the product is subject to liability for the defective product.
5958
6059 (b) Under existing law a manufacturer, seller of goods, or other entity that is engaged in the business of distributing goods to the public is strictly liable in tort if a product they manufacture, sell, or distribute proves to have a defect that causes injury to a human being.
6160
6261 (c) The purpose of that liability is to ensure that the costs of injuries resulting from defective products are borne by the manufacturers, sellers, and other entities that are engaged in the business of distributing goods to the public, rather than by the injured consumers.
6362
6463 (d) Under existing law, the elements of a strict liability action are all of the following:
6564
6665 (1) The product was used in an intended or reasonably foreseeable manner.
6766
6867 (2) The product was in a defective condition when it left the defendants possession.
6968
7069 (3) The defective product was the legal cause of the plaintiffs injuries or damages.
7170
7271 (e) There is uncertainty how to apply strict product liability law to electronic retail marketplaces. As a result, some injured consumers who purchase products through electronic retail marketplaces are unable to obtain compensation for their injuries from the entities that manufactured, distributed, or sold the products, thereby defeating the compensatory purpose of strict liability law.
7372
7473 (f) Unless this uncertainty is addressed in favor of compensating injured consumers, more and more companies will forego selling products through physical stores where strict product liability principles would require compensation. Instead, manufacturers, distributors, and sellers will emphasize electronic retail marketplace sales of possibly defective and injurious products thereby increasing the financial burdens on consumers, public health systems, and private and public insurers who, alone or in combination, will unjustly have to pay for the cost of treating and healing injuries without contribution from those that actually caused the harm or profited from the manufacture, sale, or distribution of the defective product. Furthermore, the electronic retail marketplace may be the only member of the enterprise reasonably available to the injured consumer. In other cases the electronic retail marketplace may be in a position to exert pressure on manufacturers to ensure that their products are safe. In this way, strict liability of the electronic retail marketplace serves as an incentive to safety and the lack of such liability creates an increased risk of defective products being sold to consumers. Strict liability on the manufacturer and the electronic retail marketplace alike affords maximum protection to the injured plaintiff and works no injustice to the electronic retail marketplace or manufacturer as they can adjust the costs of such protection between them in the course of their business relationship.
7574
76-(g) Under existing law, magazines, newspapers, and broadcasters are not subject to strict products liability when they accept revenue for advertisements for products that are defective and cause harm. Therefore, it is the intent of the Legislature that revenue accepted for online advertisements that are the equivalent of advertisements accepted by magazines, newspapers, or broadcasters, without further facilitation of the placement of products into the stream of commerce, are not considered a financial benefit for purposes of this act.
77-
78-SEC. 2. Section 1714.46 is added to the Civil Code, to read:1714.46. (a) Consistent with the policy considerations underlying the doctrine of strict products liability of enhancing product safety, maximizing protection to the injured plaintiff, and apportioning costs among defendants, an electronic retail marketplace 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 and shall be deemed to be a retailer for purposes of California strict liability law. The liability of an electronic retail marketplace shall be equal to, but not greater than, the liability of a retailer as provided in Vandermark v. Ford Motor Co. (1964) 61 Cal.2d 256, and all defenses to strict liability that are available to a retailer under California law shall be preserved for an electronic retail marketplace.(b) An electronic retail marketplace shall not be liable as described in subdivision (a) if any of the following conditions are met:(1) The product that caused the damage was one of the following:(A) Preowned or used and prominently described or prominently advertised on the electronic retail marketplace as preowned or used at the time it was purchased by the consumer.(B) Handmade.(2) The electronic retail marketplace did not receive a direct or indirect financial benefit from the sale of the defective product that caused the injury. A fee that is exclusively for an advertisement is not a financial benefit from the sale of the defective product.(3) The sale or transaction of the product occurred by auction and is exempt from strict liability, as described in Tauber-Arons Auctioneers Co. v. Superior Court (1980) 101 Cal.App.3d 268.(c) Notwithstanding subdivision (b), an electronic retail marketplace shall be strictly liable for the sale of preowned, used, handmade, or auctioned defective products if the application of strict liability to the electronic retail marketplace is consistent with the policy considerations underlying strict liability.(d) As used in this section, the following definitions apply:(1) Electronic retail marketplace means an electronic place or internet website that is engaged in the business of placing or facilitating the placement of products into the stream of commerce in this state, regardless of whether the vendor, product, or the marketplace has a physical presence in the state or whether, as described in Canifax v. Hercules Powder Co. (1965) 237 Cal.App.2d 44, 52, the electronic retail marketplace ever takes physical possession of the product. Electronic retail marketplace includes any subsidiaries or related party companies, including, but not limited to, any company that would constitute an affiliated group under Section 1504 of the Internal Revenue Code.(2) Handmade means a product that conforms to all applicable state and federal consumer health and safety laws and is made by the vendor in the primary residence of the vendor, so long as the vendors sales of handmade products generate less than fifty thousand dollars ($50,000) per year in revenues.(3) Product means a tangible good that is subject to strict product liability law.(4) Vendor means the manufacturer, distributor, seller, or supplier of the product. Vendor does not include the electronic retail marketplace.(e) This section does not limit the provisions of existing law that make manufacturers, distributors, sellers, retailers, and suppliers of products strictly liable for the safety of those products and prohibit the sale of products that violate state or federal health or safety laws.
75+SEC. 2. Section 1714.46 is added to the Civil Code, to read:1714.46. (a) Except as provided in subdivision (b), Consistent with the policy considerations underlying the doctrine of strict products liability of enhancing product safety, maximizing protection to the injured plaintiff, and apportioning costs among defendants, an electronic retail marketplace 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 and shall be deemed to be a retailer for purposes of California strict liability law. The liability of an electronic retail marketplace shall be equal to, but not greater than, the liability of a retailer as provided in Vandermark v. Ford Motor Co. (1964) 61 Cal.2d 256, and all defenses to strict liability that are available to a retailer under California law shall be preserved for an electronic retail marketplace.(b) An electronic retail marketplace shall not be liable as described in subdivision (a) if any of the following conditions are met:(1) The product that caused the damage was one of the following:(A) Preowned or used and prominently described or prominently advertised on the electronic retail marketplace as preowned or used at the time it was purchased by the consumer.(B) Handmade.(2) The electronic retail marketplace did not receive a direct or indirect financial benefit from the sale of the defective product that caused the injury. A fee that is exclusively for an advertisement is not a financial benefit from the sale of the defective product.(3) The sale or transaction of the product occurred by auction and is exempt from strict liability, as described in Tauber-Arons Auctioneers Co. v. Superior Court (1980) 101 Cal.App.3d 268.(c) Notwithstanding subdivision (b), an electronic retail marketplace shall be strictly liable for the sale of preowned, used, handmade, or auctioned defective products to the same extent that a retailer, because of its actions, would be liable for the sale of those goods. Those actions include, but are not limited to, promoting the product or leading a reasonable consumer to believe that the product is safe for its intended use. if the application of strict liability to the electronic retail marketplace is consistent with the policy considerations underlying strict liability.(d) As used in this section, the following definitions apply:(1) Electronic retail marketplace means an electronic place or internet website that is engaged in the business of placing products into the stream of commerce in this state, regardless of whether the vendor, product, or the marketplace has a physical presence in the state or whether, as described in Canifax v. Hercules Powder Co. (1965) 237 Cal.App.2d 44, 52, the electronic retail marketplace ever takes physical possession of the product. Electronic retail marketplace includes any subsidiaries or related party companies, including, but not limited to, any company that would constitute an affiliated group under Section 1504 of the Internal Revenue Code.(2) Handmade means a product that conforms to all applicable state and federal consumer health and safety laws and is made by the vendor in the primary residence of the vendor, so long as the vendors sales of handmade products generate less than fifty thousand dollars ($50,000) per year in revenues.(3) Product means a tangible good that is subject to strict product liability law.(4) Vendor means the manufacturer, distributor, seller, or supplier of the product. Vendor does not include the electronic retail marketplace.(e) This section does not limit the provisions of existing law that make manufacturers, distributors, sellers, retailers, and suppliers of products strictly liable for the safety of those products and prohibit the sale of products that violate state or federal health or safety laws.
7976
8077 SEC. 2. Section 1714.46 is added to the Civil Code, to read:
8178
8279 ### SEC. 2.
8380
84-1714.46. (a) Consistent with the policy considerations underlying the doctrine of strict products liability of enhancing product safety, maximizing protection to the injured plaintiff, and apportioning costs among defendants, an electronic retail marketplace 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 and shall be deemed to be a retailer for purposes of California strict liability law. The liability of an electronic retail marketplace shall be equal to, but not greater than, the liability of a retailer as provided in Vandermark v. Ford Motor Co. (1964) 61 Cal.2d 256, and all defenses to strict liability that are available to a retailer under California law shall be preserved for an electronic retail marketplace.(b) An electronic retail marketplace shall not be liable as described in subdivision (a) if any of the following conditions are met:(1) The product that caused the damage was one of the following:(A) Preowned or used and prominently described or prominently advertised on the electronic retail marketplace as preowned or used at the time it was purchased by the consumer.(B) Handmade.(2) The electronic retail marketplace did not receive a direct or indirect financial benefit from the sale of the defective product that caused the injury. A fee that is exclusively for an advertisement is not a financial benefit from the sale of the defective product.(3) The sale or transaction of the product occurred by auction and is exempt from strict liability, as described in Tauber-Arons Auctioneers Co. v. Superior Court (1980) 101 Cal.App.3d 268.(c) Notwithstanding subdivision (b), an electronic retail marketplace shall be strictly liable for the sale of preowned, used, handmade, or auctioned defective products if the application of strict liability to the electronic retail marketplace is consistent with the policy considerations underlying strict liability.(d) As used in this section, the following definitions apply:(1) Electronic retail marketplace means an electronic place or internet website that is engaged in the business of placing or facilitating the placement of products into the stream of commerce in this state, regardless of whether the vendor, product, or the marketplace has a physical presence in the state or whether, as described in Canifax v. Hercules Powder Co. (1965) 237 Cal.App.2d 44, 52, the electronic retail marketplace ever takes physical possession of the product. Electronic retail marketplace includes any subsidiaries or related party companies, including, but not limited to, any company that would constitute an affiliated group under Section 1504 of the Internal Revenue Code.(2) Handmade means a product that conforms to all applicable state and federal consumer health and safety laws and is made by the vendor in the primary residence of the vendor, so long as the vendors sales of handmade products generate less than fifty thousand dollars ($50,000) per year in revenues.(3) Product means a tangible good that is subject to strict product liability law.(4) Vendor means the manufacturer, distributor, seller, or supplier of the product. Vendor does not include the electronic retail marketplace.(e) This section does not limit the provisions of existing law that make manufacturers, distributors, sellers, retailers, and suppliers of products strictly liable for the safety of those products and prohibit the sale of products that violate state or federal health or safety laws.
81+1714.46. (a) Except as provided in subdivision (b), Consistent with the policy considerations underlying the doctrine of strict products liability of enhancing product safety, maximizing protection to the injured plaintiff, and apportioning costs among defendants, an electronic retail marketplace 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 and shall be deemed to be a retailer for purposes of California strict liability law. The liability of an electronic retail marketplace shall be equal to, but not greater than, the liability of a retailer as provided in Vandermark v. Ford Motor Co. (1964) 61 Cal.2d 256, and all defenses to strict liability that are available to a retailer under California law shall be preserved for an electronic retail marketplace.(b) An electronic retail marketplace shall not be liable as described in subdivision (a) if any of the following conditions are met:(1) The product that caused the damage was one of the following:(A) Preowned or used and prominently described or prominently advertised on the electronic retail marketplace as preowned or used at the time it was purchased by the consumer.(B) Handmade.(2) The electronic retail marketplace did not receive a direct or indirect financial benefit from the sale of the defective product that caused the injury. A fee that is exclusively for an advertisement is not a financial benefit from the sale of the defective product.(3) The sale or transaction of the product occurred by auction and is exempt from strict liability, as described in Tauber-Arons Auctioneers Co. v. Superior Court (1980) 101 Cal.App.3d 268.(c) Notwithstanding subdivision (b), an electronic retail marketplace shall be strictly liable for the sale of preowned, used, handmade, or auctioned defective products to the same extent that a retailer, because of its actions, would be liable for the sale of those goods. Those actions include, but are not limited to, promoting the product or leading a reasonable consumer to believe that the product is safe for its intended use. if the application of strict liability to the electronic retail marketplace is consistent with the policy considerations underlying strict liability.(d) As used in this section, the following definitions apply:(1) Electronic retail marketplace means an electronic place or internet website that is engaged in the business of placing products into the stream of commerce in this state, regardless of whether the vendor, product, or the marketplace has a physical presence in the state or whether, as described in Canifax v. Hercules Powder Co. (1965) 237 Cal.App.2d 44, 52, the electronic retail marketplace ever takes physical possession of the product. Electronic retail marketplace includes any subsidiaries or related party companies, including, but not limited to, any company that would constitute an affiliated group under Section 1504 of the Internal Revenue Code.(2) Handmade means a product that conforms to all applicable state and federal consumer health and safety laws and is made by the vendor in the primary residence of the vendor, so long as the vendors sales of handmade products generate less than fifty thousand dollars ($50,000) per year in revenues.(3) Product means a tangible good that is subject to strict product liability law.(4) Vendor means the manufacturer, distributor, seller, or supplier of the product. Vendor does not include the electronic retail marketplace.(e) This section does not limit the provisions of existing law that make manufacturers, distributors, sellers, retailers, and suppliers of products strictly liable for the safety of those products and prohibit the sale of products that violate state or federal health or safety laws.
8582
86-1714.46. (a) Consistent with the policy considerations underlying the doctrine of strict products liability of enhancing product safety, maximizing protection to the injured plaintiff, and apportioning costs among defendants, an electronic retail marketplace 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 and shall be deemed to be a retailer for purposes of California strict liability law. The liability of an electronic retail marketplace shall be equal to, but not greater than, the liability of a retailer as provided in Vandermark v. Ford Motor Co. (1964) 61 Cal.2d 256, and all defenses to strict liability that are available to a retailer under California law shall be preserved for an electronic retail marketplace.(b) An electronic retail marketplace shall not be liable as described in subdivision (a) if any of the following conditions are met:(1) The product that caused the damage was one of the following:(A) Preowned or used and prominently described or prominently advertised on the electronic retail marketplace as preowned or used at the time it was purchased by the consumer.(B) Handmade.(2) The electronic retail marketplace did not receive a direct or indirect financial benefit from the sale of the defective product that caused the injury. A fee that is exclusively for an advertisement is not a financial benefit from the sale of the defective product.(3) The sale or transaction of the product occurred by auction and is exempt from strict liability, as described in Tauber-Arons Auctioneers Co. v. Superior Court (1980) 101 Cal.App.3d 268.(c) Notwithstanding subdivision (b), an electronic retail marketplace shall be strictly liable for the sale of preowned, used, handmade, or auctioned defective products if the application of strict liability to the electronic retail marketplace is consistent with the policy considerations underlying strict liability.(d) As used in this section, the following definitions apply:(1) Electronic retail marketplace means an electronic place or internet website that is engaged in the business of placing or facilitating the placement of products into the stream of commerce in this state, regardless of whether the vendor, product, or the marketplace has a physical presence in the state or whether, as described in Canifax v. Hercules Powder Co. (1965) 237 Cal.App.2d 44, 52, the electronic retail marketplace ever takes physical possession of the product. Electronic retail marketplace includes any subsidiaries or related party companies, including, but not limited to, any company that would constitute an affiliated group under Section 1504 of the Internal Revenue Code.(2) Handmade means a product that conforms to all applicable state and federal consumer health and safety laws and is made by the vendor in the primary residence of the vendor, so long as the vendors sales of handmade products generate less than fifty thousand dollars ($50,000) per year in revenues.(3) Product means a tangible good that is subject to strict product liability law.(4) Vendor means the manufacturer, distributor, seller, or supplier of the product. Vendor does not include the electronic retail marketplace.(e) This section does not limit the provisions of existing law that make manufacturers, distributors, sellers, retailers, and suppliers of products strictly liable for the safety of those products and prohibit the sale of products that violate state or federal health or safety laws.
83+1714.46. (a) Except as provided in subdivision (b), Consistent with the policy considerations underlying the doctrine of strict products liability of enhancing product safety, maximizing protection to the injured plaintiff, and apportioning costs among defendants, an electronic retail marketplace 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 and shall be deemed to be a retailer for purposes of California strict liability law. The liability of an electronic retail marketplace shall be equal to, but not greater than, the liability of a retailer as provided in Vandermark v. Ford Motor Co. (1964) 61 Cal.2d 256, and all defenses to strict liability that are available to a retailer under California law shall be preserved for an electronic retail marketplace.(b) An electronic retail marketplace shall not be liable as described in subdivision (a) if any of the following conditions are met:(1) The product that caused the damage was one of the following:(A) Preowned or used and prominently described or prominently advertised on the electronic retail marketplace as preowned or used at the time it was purchased by the consumer.(B) Handmade.(2) The electronic retail marketplace did not receive a direct or indirect financial benefit from the sale of the defective product that caused the injury. A fee that is exclusively for an advertisement is not a financial benefit from the sale of the defective product.(3) The sale or transaction of the product occurred by auction and is exempt from strict liability, as described in Tauber-Arons Auctioneers Co. v. Superior Court (1980) 101 Cal.App.3d 268.(c) Notwithstanding subdivision (b), an electronic retail marketplace shall be strictly liable for the sale of preowned, used, handmade, or auctioned defective products to the same extent that a retailer, because of its actions, would be liable for the sale of those goods. Those actions include, but are not limited to, promoting the product or leading a reasonable consumer to believe that the product is safe for its intended use. if the application of strict liability to the electronic retail marketplace is consistent with the policy considerations underlying strict liability.(d) As used in this section, the following definitions apply:(1) Electronic retail marketplace means an electronic place or internet website that is engaged in the business of placing products into the stream of commerce in this state, regardless of whether the vendor, product, or the marketplace has a physical presence in the state or whether, as described in Canifax v. Hercules Powder Co. (1965) 237 Cal.App.2d 44, 52, the electronic retail marketplace ever takes physical possession of the product. Electronic retail marketplace includes any subsidiaries or related party companies, including, but not limited to, any company that would constitute an affiliated group under Section 1504 of the Internal Revenue Code.(2) Handmade means a product that conforms to all applicable state and federal consumer health and safety laws and is made by the vendor in the primary residence of the vendor, so long as the vendors sales of handmade products generate less than fifty thousand dollars ($50,000) per year in revenues.(3) Product means a tangible good that is subject to strict product liability law.(4) Vendor means the manufacturer, distributor, seller, or supplier of the product. Vendor does not include the electronic retail marketplace.(e) This section does not limit the provisions of existing law that make manufacturers, distributors, sellers, retailers, and suppliers of products strictly liable for the safety of those products and prohibit the sale of products that violate state or federal health or safety laws.
8784
88-1714.46. (a) Consistent with the policy considerations underlying the doctrine of strict products liability of enhancing product safety, maximizing protection to the injured plaintiff, and apportioning costs among defendants, an electronic retail marketplace 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 and shall be deemed to be a retailer for purposes of California strict liability law. The liability of an electronic retail marketplace shall be equal to, but not greater than, the liability of a retailer as provided in Vandermark v. Ford Motor Co. (1964) 61 Cal.2d 256, and all defenses to strict liability that are available to a retailer under California law shall be preserved for an electronic retail marketplace.(b) An electronic retail marketplace shall not be liable as described in subdivision (a) if any of the following conditions are met:(1) The product that caused the damage was one of the following:(A) Preowned or used and prominently described or prominently advertised on the electronic retail marketplace as preowned or used at the time it was purchased by the consumer.(B) Handmade.(2) The electronic retail marketplace did not receive a direct or indirect financial benefit from the sale of the defective product that caused the injury. A fee that is exclusively for an advertisement is not a financial benefit from the sale of the defective product.(3) The sale or transaction of the product occurred by auction and is exempt from strict liability, as described in Tauber-Arons Auctioneers Co. v. Superior Court (1980) 101 Cal.App.3d 268.(c) Notwithstanding subdivision (b), an electronic retail marketplace shall be strictly liable for the sale of preowned, used, handmade, or auctioned defective products if the application of strict liability to the electronic retail marketplace is consistent with the policy considerations underlying strict liability.(d) As used in this section, the following definitions apply:(1) Electronic retail marketplace means an electronic place or internet website that is engaged in the business of placing or facilitating the placement of products into the stream of commerce in this state, regardless of whether the vendor, product, or the marketplace has a physical presence in the state or whether, as described in Canifax v. Hercules Powder Co. (1965) 237 Cal.App.2d 44, 52, the electronic retail marketplace ever takes physical possession of the product. Electronic retail marketplace includes any subsidiaries or related party companies, including, but not limited to, any company that would constitute an affiliated group under Section 1504 of the Internal Revenue Code.(2) Handmade means a product that conforms to all applicable state and federal consumer health and safety laws and is made by the vendor in the primary residence of the vendor, so long as the vendors sales of handmade products generate less than fifty thousand dollars ($50,000) per year in revenues.(3) Product means a tangible good that is subject to strict product liability law.(4) Vendor means the manufacturer, distributor, seller, or supplier of the product. Vendor does not include the electronic retail marketplace.(e) This section does not limit the provisions of existing law that make manufacturers, distributors, sellers, retailers, and suppliers of products strictly liable for the safety of those products and prohibit the sale of products that violate state or federal health or safety laws.
85+1714.46. (a) Except as provided in subdivision (b), Consistent with the policy considerations underlying the doctrine of strict products liability of enhancing product safety, maximizing protection to the injured plaintiff, and apportioning costs among defendants, an electronic retail marketplace 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 and shall be deemed to be a retailer for purposes of California strict liability law. The liability of an electronic retail marketplace shall be equal to, but not greater than, the liability of a retailer as provided in Vandermark v. Ford Motor Co. (1964) 61 Cal.2d 256, and all defenses to strict liability that are available to a retailer under California law shall be preserved for an electronic retail marketplace.(b) An electronic retail marketplace shall not be liable as described in subdivision (a) if any of the following conditions are met:(1) The product that caused the damage was one of the following:(A) Preowned or used and prominently described or prominently advertised on the electronic retail marketplace as preowned or used at the time it was purchased by the consumer.(B) Handmade.(2) The electronic retail marketplace did not receive a direct or indirect financial benefit from the sale of the defective product that caused the injury. A fee that is exclusively for an advertisement is not a financial benefit from the sale of the defective product.(3) The sale or transaction of the product occurred by auction and is exempt from strict liability, as described in Tauber-Arons Auctioneers Co. v. Superior Court (1980) 101 Cal.App.3d 268.(c) Notwithstanding subdivision (b), an electronic retail marketplace shall be strictly liable for the sale of preowned, used, handmade, or auctioned defective products to the same extent that a retailer, because of its actions, would be liable for the sale of those goods. Those actions include, but are not limited to, promoting the product or leading a reasonable consumer to believe that the product is safe for its intended use. if the application of strict liability to the electronic retail marketplace is consistent with the policy considerations underlying strict liability.(d) As used in this section, the following definitions apply:(1) Electronic retail marketplace means an electronic place or internet website that is engaged in the business of placing products into the stream of commerce in this state, regardless of whether the vendor, product, or the marketplace has a physical presence in the state or whether, as described in Canifax v. Hercules Powder Co. (1965) 237 Cal.App.2d 44, 52, the electronic retail marketplace ever takes physical possession of the product. Electronic retail marketplace includes any subsidiaries or related party companies, including, but not limited to, any company that would constitute an affiliated group under Section 1504 of the Internal Revenue Code.(2) Handmade means a product that conforms to all applicable state and federal consumer health and safety laws and is made by the vendor in the primary residence of the vendor, so long as the vendors sales of handmade products generate less than fifty thousand dollars ($50,000) per year in revenues.(3) Product means a tangible good that is subject to strict product liability law.(4) Vendor means the manufacturer, distributor, seller, or supplier of the product. Vendor does not include the electronic retail marketplace.(e) This section does not limit the provisions of existing law that make manufacturers, distributors, sellers, retailers, and suppliers of products strictly liable for the safety of those products and prohibit the sale of products that violate state or federal health or safety laws.
8986
9087
9188
92-1714.46. (a) Consistent with the policy considerations underlying the doctrine of strict products liability of enhancing product safety, maximizing protection to the injured plaintiff, and apportioning costs among defendants, an electronic retail marketplace 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 and shall be deemed to be a retailer for purposes of California strict liability law. The liability of an electronic retail marketplace shall be equal to, but not greater than, the liability of a retailer as provided in Vandermark v. Ford Motor Co. (1964) 61 Cal.2d 256, and all defenses to strict liability that are available to a retailer under California law shall be preserved for an electronic retail marketplace.
89+1714.46. (a) Except as provided in subdivision (b), Consistent with the policy considerations underlying the doctrine of strict products liability of enhancing product safety, maximizing protection to the injured plaintiff, and apportioning costs among defendants, an electronic retail marketplace 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 and shall be deemed to be a retailer for purposes of California strict liability law. The liability of an electronic retail marketplace shall be equal to, but not greater than, the liability of a retailer as provided in Vandermark v. Ford Motor Co. (1964) 61 Cal.2d 256, and all defenses to strict liability that are available to a retailer under California law shall be preserved for an electronic retail marketplace.
9390
9491 (b) An electronic retail marketplace shall not be liable as described in subdivision (a) if any of the following conditions are met:
9592
9693 (1) The product that caused the damage was one of the following:
9794
9895 (A) Preowned or used and prominently described or prominently advertised on the electronic retail marketplace as preowned or used at the time it was purchased by the consumer.
9996
10097 (B) Handmade.
10198
10299 (2) The electronic retail marketplace did not receive a direct or indirect financial benefit from the sale of the defective product that caused the injury. A fee that is exclusively for an advertisement is not a financial benefit from the sale of the defective product.
103100
104101 (3) The sale or transaction of the product occurred by auction and is exempt from strict liability, as described in Tauber-Arons Auctioneers Co. v. Superior Court (1980) 101 Cal.App.3d 268.
105102
106-(c) Notwithstanding subdivision (b), an electronic retail marketplace shall be strictly liable for the sale of preowned, used, handmade, or auctioned defective products if the application of strict liability to the electronic retail marketplace is consistent with the policy considerations underlying strict liability.
103+(c) Notwithstanding subdivision (b), an electronic retail marketplace shall be strictly liable for the sale of preowned, used, handmade, or auctioned defective products to the same extent that a retailer, because of its actions, would be liable for the sale of those goods. Those actions include, but are not limited to, promoting the product or leading a reasonable consumer to believe that the product is safe for its intended use. if the application of strict liability to the electronic retail marketplace is consistent with the policy considerations underlying strict liability.
107104
108105 (d) As used in this section, the following definitions apply:
109106
110-(1) Electronic retail marketplace means an electronic place or internet website that is engaged in the business of placing or facilitating the placement of products into the stream of commerce in this state, regardless of whether the vendor, product, or the marketplace has a physical presence in the state or whether, as described in Canifax v. Hercules Powder Co. (1965) 237 Cal.App.2d 44, 52, the electronic retail marketplace ever takes physical possession of the product. Electronic retail marketplace includes any subsidiaries or related party companies, including, but not limited to, any company that would constitute an affiliated group under Section 1504 of the Internal Revenue Code.
107+(1) Electronic retail marketplace means an electronic place or internet website that is engaged in the business of placing products into the stream of commerce in this state, regardless of whether the vendor, product, or the marketplace has a physical presence in the state or whether, as described in Canifax v. Hercules Powder Co. (1965) 237 Cal.App.2d 44, 52, the electronic retail marketplace ever takes physical possession of the product. Electronic retail marketplace includes any subsidiaries or related party companies, including, but not limited to, any company that would constitute an affiliated group under Section 1504 of the Internal Revenue Code.
111108
112109 (2) Handmade means a product that conforms to all applicable state and federal consumer health and safety laws and is made by the vendor in the primary residence of the vendor, so long as the vendors sales of handmade products generate less than fifty thousand dollars ($50,000) per year in revenues.
113110
114111 (3) Product means a tangible good that is subject to strict product liability law.
115112
116113 (4) Vendor means the manufacturer, distributor, seller, or supplier of the product. Vendor does not include the electronic retail marketplace.
117114
118115 (e) This section does not limit the provisions of existing law that make manufacturers, distributors, sellers, retailers, and suppliers of products strictly liable for the safety of those products and prohibit the sale of products that violate state or federal health or safety laws.