When Is Amazon Liable for Defective Products in Illinois?

Online shopping has become deeply woven into daily life, and Amazon leads the charge. Whether a Chicago homeowner orders a smart smoke detector, or a family in Naperville buys a children’s toy, people expect products purchased through Amazon to be safe. But what happens when a defective product injures a consumer in Illinois? As courts and regulators grapple with Amazon’s evolving role, liability can hinge on where and how the product was sold, who had control over its distribution, and whether state law treats Amazon as part of the product’s supply chain.

This blog explains key legal principles under Illinois product liability law, how Amazon’s marketplace structure affects liability, and what Illinois consumers should do if they suffer harm from a defective Amazon purchase.

Understanding Amazon’s Role in E-Commerce

Amazon operates in several capacities:

Direct Retailer: Amazon buys and resells products itself.
Marketplace Platform: Independent “third-party sellers” list goods on Amazon.com.
Fulfillment Provider: Through Fulfilled by Amazon (FBA), Amazon stores, packs, and ships products for third parties.

This hybrid dynamic complicates liability. Traditional product liability law holds manufacturers, distributors, and retailers responsible for defective products that cause injury. In Illinois, that framework comes primarily from Restatement (Second) of Torts § 402A, which imposes strict liability on sellers of products in defective condition unreasonably dangerous to consumers. Distributors and retailers in the chain of distribution can also be liable if they marketed or sold the product.

Unlike simple in-store purchases, Amazon’s online ecosystem blurs lines about who “sold” or “distributed” a product, leading to complex questions under Illinois law.

Key Principles of Illinois Product Liability Law

Under Illinois law, strict liability and negligence claims for defective products typically require proof that:

The product was defective when it left the control of the defendant;
The defect made the product unreasonably dangerous;
The defect caused the injury; and
The product reached the consumer without substantial alteration.

Importantly, liability isn’t limited to the manufacturer, anyone in the chain of distribution (including retailers and distributors) can be held responsible if they contributed to the defect or failed to act reasonably.

However, Illinois courts have been cautious about expanding liability beyond traditional roles. In Garber v. Amazon.com, the U.S. District Court for the Northern District of Illinois concluded that the Illinois Supreme Court would likely not consider Amazon Marketplace a “seller” under § 402A simply because it provided a venue for third-party sellers. The court reasoned that Amazon did not own, source, or ship products in that case, and thus was not within the traditional chain of distribution.

Judicial Outcomes in Illinois

Recent federal decisions in Illinois illustrate how outcomes can vary:

Cases Where Amazon Was Not Held Liable

In Garber, the court granted summary judgment for Amazon in a hoverboard fire case, concluding that Amazon was not a manufacturer or seller of the defective product under Illinois law because it did not retain title or control in the transaction.
In Great Northern Insurance Co. v. Amazon, the court again found that Amazon was not liable for hoverboards allegedly causing a fire, noting that Amazon’s role as an online marketplace did not make it part of the supply chain for product liability purposes.

Together, these cases reflect a trend in Illinois federal courts to limit Amazon’s strict liability exposure where Amazon functions as a facilitator or marketplace, particularly when it neither owns nor physically controls the defective item.

How Illinois Law May Evolve

Illinois courts haven’t definitively ruled statewide on whether Amazon can be treated as a seller or distributor in product liability cases. State courts could change that analysis. Under existing Illinois precedent, parties can sometimes be held liable even if they aren’t the manufacturer but:

Participated in marketing or distribution in a significant way,
Derived economic benefit from placing the product into commerce, and
Were in a position to eliminate the unsafe character of the product but failed to do so.

This framework could potentially support liability against Amazon in future cases where Amazon’s role goes beyond a passive marketplace.

Federal Regulatory Pressure: Amazon as a “Distributor” Nationwide

While Illinois cases show judicial restraint, federal regulators have taken a different view on Amazon’s responsibility for defective products and these decisions can influence how courts and consumer expectations evolve.

In a landmark ruling, the U.S. Consumer Product Safety Commission (CPSC) determined that Amazon qualifies as a “distributor” under federal safety law for products sold through its marketplace and fulfilled by Amazon. The agency found that Amazon must notify consumers and facilitate recalls for hazardous products, even if sold by third-party sellers. More than 400,000 products were identified as defective hazards, including faulty carbon monoxide detectors and children’s sleepwear that violated safety standards.

In January 2025, the CPSC issued a final order requiring Amazon to:

Notify customers and the public about hazardous products;
Provide incentives for consumers to dispose of or destroy the items, including full refunds;
Maintain records of recall notices.

This federal action reflects a shift: regulators increasingly recognize Amazon’s role in the product distribution process, an issue that may influence future Illinois claims or legislative reform.

How Amazon’s A-to-Z Guarantee Works in Illinois

Separately from legal liability, Amazon’s A-to-Z Guarantee provides an avenue for Illinois consumers to seek compensation for defective items, especially when injuries or property damage occur. Amazon expanded this policy to cover personal injury and property damage claims, paying valid claims up to $1,000 directly. For amounts over $1,000, Amazon may pursue recovery from the seller or issue compensation if the seller does not respond.

While not a substitute for a full legal claim, this guarantee can:

Offer swift relief for minor injury or damage claims;
Provide refunds when third-party sellers fail to respond;
Document issues that may support a larger legal case.

Common Defects and Illinois Injury Statistics

Comprehensive state-specific data on Amazon product defects is limited, but certain trends are clear:

The CPSC identified over 400,000 hazardous products Amazon must address nationally, a figure that includes products sold across all states.
Ill-fitting carbon monoxide detectors, defective electrical products, and flammable clothing represent common categories of hazardous goods that can cause severe injuries.

Across the U.S., product defects contribute to over $1 trillion in annual costs, including medical expenses, lost productivity, and property damage, a substantial burden for injured consumers, including those in Illinois.

What Illinois Consumers Should Do After an Injury

If you are injured by a defective product purchased through Amazon in Illinois:

Preserve the product and packaging, and do not discard evidence.
Photograph injuries and document medical treatment thoroughly.
Save order receipts and account information from Amazon.
Report the unsafe product to the CPSC via SaferProducts.gov.
Use Amazon’s A-to-Z Guarantee to seek initial reimbursement.
Consult an experienced Illinois product liability attorney promptly.

“When a defective product bought online injures someone, especially here in Illinois, accountability must follow,” says John J. Malm. “Consumers deserve compensation when harm results from defects, regardless of whether the product came from a warehouse or an online marketplace.”

Frequently Asked Questions about Amazon & Defective Product Liability

Q: Can I sue Amazon in Illinois if a defective item I bought online injured me?
A: Yes, but liability depends on whether Amazon can be treated as part of the product’s supply chain under Illinois law and how the court interprets its role in the transaction. Cases to date often find Amazon not liable when it acted only as a marketplace provider.

Q: What if the product was sold by a third-party seller?
A: Even if a third party sold the product, Amazon’s liability may arise if it exercised significant control, such as through FBA or marketing. Federal regulators have already treated Amazon as a “distributor” for recall purposes in certain contexts.

Q: What is required under Illinois product liability law?
A: Illinois applies strict liability and negligence principles to parties in the distribution chain. An injured consumer must show the defect caused harm and that the defendant’s involvement was sufficiently connected to the product’s entry into the marketplace.

Q: Does Amazon’s A-to-Z Guarantee affect my legal case?
A: The guarantee can provide compensation and evidence support, but it does not replace a full Illinois legal claim for damages beyond its coverage limits.

Q: Should I report the product to Illinois agencies?
A: Yes. In addition to federal reporting to the CPSC, the Illinois Attorney General’s office encourages consumers to check for recalls and can provide information on unsafe products.

Contact the Top-Rated Illinois Defective Product Injury Lawyers at John J. Malm & Associates

For Illinois consumers harmed by a defective Amazon purchase, the legal landscape is complex but not hopeless. Courts in Illinois have been cautious about labeling Amazon a “seller” under traditional product liability, but federal regulatory actions, evolving case law, and consumer protections like Amazon’s A-to-Z Guarantee offer multiple paths to relief.

If you or a loved one in Illinois has suffered injury, medical expenses, or property damage due to a defective product bought through Amazon, time is critical. Evidence can degrade, and legal deadlines, such as statutes of limitations, may limit your ability to pursue compensation.

Contact our qualified Illinois product liability attorneys today for a full evaluation of your rights, potential defendants, and compensation you may be owed. You don’t have to navigate this alone and you shouldn’t have to pay the price for someone else’s defect.