Vote Smart's Synopsis:

Vote to pass a bill that requires electronic marketplaces to be held strictly liable, subject to certain exceptions, for all damages proximately caused by defective products.

Highlights:

• Requires a marketplace that is an electronic place or internet website to be strictly liable for all damages proximately caused by defective products to the same extent as a retailer that is not an electronic place or internet website (Sec. 2).

• Requires this liability to apply whether or not the electronic place or internet website marketplace had physical possession of the defective product that caused the injury or took title to the defective product that caused the injury (Sec. 2).

• Exempts marketplaces that are electronic places or internet websites from being liable if (Sec. 2):

• The defective product that caused the injury was pre-owned or used and was prominently described or prominently advertised on the marketplace as pre-owned or used; 

• The marketplace did not receive compensation or payment from the consumer for the product whether by receiving a payment from the consumer or by receiving a share of compensation or payment from the consumer by the vendor for the defective product that caused the injury; or

• The sale or transaction of the product occurred by auction as recognized in Tauber-Arons Auctioneers Co. v. Superior Court.

• Defines “vendor” as the manufacturer, distributor, or supplier of the product, but does not include a marketplace (Sec. 2).

Full Bill Text