Federal Court Determines Amazon Is Not a "Seller" Of Third-P

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On March 9, 2021, the Northern District of Illinois ruled in favor of Amazon.com, Inc. (“Amazon”) on claims stemming from a house fire that was allegedly caused by defective hoverboards sold by two third-party sellers via Amazon’s online marketplace. The court granted summary judgment after determining that Illinois’s highest court likely would not consider Amazon a “seller” of the hoverboards—an issue that has divided courts across multiple jurisdictions.
Plaintiff Great Northern Insurance Company filed suit on behalf of its insureds Dan and Danielle Perper against Amazon and two Chinese companies that manufactured and shipped the allegedly defective hoverboards. The Perpers’ home sustained damage in a fire that they claim was caused by a defective lithium-ion battery in at least one of the hoverboards.

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