Amazon loses legal battle over whether customers can sue over lack of toxic warnings
gorodenkoff/iStock via Getty Images


Amazon (NASDAQ:AMZN) lost a legal battle on Wednesday when the California Supreme Court left intact a ruling that allows customers to sue the e-commerce giant for failing to warn buyers that some products it sells may contain hazardous substances such as mercury.

The court denied a request by Amazon's (AMZN) lawyers to review a lower court ruling that said the company violated the state's Proposition 65, which requires companies to warn consumers about products they make or sell that contain chemicals known to cause cancer, reproductive harm or birth defects.
The original case in Alameda County was over a claim that the retailer knowingly allowed skin-lightening creams to be sold on its website for years despite being aware of concerns about toxic mercury levels in such creams.
Amazon (AMZN) said in a statement Thursday that safety is a top priority and that the products in question were removed a long time ago.
Full Amazon statement: "We require that all products comply with applicable laws and regulations, and we have proactive measures in place to prevent suspicious or non-compliant products from being listed and we monitor the products sold in our stores for product safety concerns."
The legal jeopardy for AMZN is that the Supreme Courtâs action allows the previous court ruling to be used as precedent in state courts.
Amazon (AMZN) fell sharply on Thursday with the retail sector overall underperforming the broad market amid growing recession concerns.