Product liability: products purchased online.
This bill is designed to clarify the existing liability framework concerning products sold through electronic channels. By extending strict liability to electronic marketplaces, AB 1182 closes a legal gap that currently allows international manufacturers to evade responsibility for defective products sold in California. It insists that online sellers are responsible for the injuries caused by defective products, even if they do not physically possess the items they sell. This change aims to promote accountability within the online retail framework and protect consumers who may otherwise find it challenging to seek recourse from foreign manufacturers.
Assembly Bill 1182, introduced by Assembly Member Stone, addresses the liability of electronic places that sell products online. This bill seeks to ensure that entities engaged in the electronic sale of products are held strictly liable for damages caused by defective goods, mirroring the liability of traditional retailers. The legislation acknowledges the significant rise in online sales, especially during the COVID-19 pandemic, which has shifted much consumer behavior towards digital marketplaces. As online sales are expected to continue growing, the bill responds to the complexities of liability in this evolving environment.
Opposition to this bill may arise from concerns about the increased financial liability placed on electronic retailers and the potential impact on their business models. Critics might argue that imposing strict liability could lead to higher costs for consumers as online sellers may pass on potential liability costs through increased pricing. Additionally, there could be worries about how this affects smaller online vendors who might struggle to manage the liabilities associated with strict product liability, leading to a reduction in competition in the market.