Proposed legislation to end defective products loophole
California AB 3262 was introduced by Assemblyman Mark Stone (D-Santa Cruz) on Feb. 21, 2020. This law would extend strict liability for defective products to online retailers. Currently, product designers and manufacturers are strictly liable for injuries caused by their products. Brick-and-mortar retailers are also liable when they sell products to consumers that are defective and cause injuries. While laws have been in place to hold retailers accountable when they sell defective products that injure consumers, online retailers, including Amazon, Etsy, and eBay have been able to rely on a loophole to escape liability.