Legislation targeting online markets and scooter rentals face vote

A pair of consumer rights bills sponsored by the Consumer Attorneys of California passed the Senate Judiciary Committee this week.

AB 3262 would hold online marketplaces to the same product liability standards as physical stores. Supporters have billed the measure as a response to the rise in online shopping during the pandemic and an increase in potential dangerous products being sold online, especially ones from China. The main products of concern have been electronic devices, batteries, toys, medicine and supplements.

The bill is opposed by the California Chamber of Commerce and other business groups, but has passed easily at every step. Stopping the bill has also been a priority for Amazon, which has spent more than $206,000 on lobbying in Sacramento during the first half of this year.

Committee analyses noted numerous failed product liability lawsuits against the company. One of these was filed by a family whose Santa Rosa home burned down in 2016 in a fire they claim was caused by a child's electronic hoverboard. That case is headed to the 9th U.S. Circuit Court of Appeals after a district court judge ruled last year the plaintiffs failed to show that Amazon allowing the seller to post the product on its platform was a necessary step in it reaching consumers. Carpenter et al. v. Amazon.com Inc., 17-CV03221 (N.D. Cal., filed June 5, 2017).

Another case was filed by Angela Bolger, a San Diego woman who said she was severely burned in 2016 when a Chinese laptop battery exploded while she was using it.

Testifying remotely on Tuesday, she told the committee that months later Amazon sent her a warning the batteries were unsafe and refunded her purchase price. "I trusted Amazon to stand behind the products they sell, but they betrayed that trust," Bolger said.

Last week, the 4th District Court of Appeal revived Bolger's case. Writing for the unanimous panel, Justice Patricia Guerrero found Amazon had placed itself between the seller and Bolger and could face liability for its own conduct. Bolger v. Amazon.Com LLC, D075738 (Cal. App. 4th, Aug. 13, 2020).

The committee also approved AB 1286. Co-sponsored by the League of California Cities, it would require rental scooter companies to sign permitting agreements with any city or county where they operate. It would also demand these companies to carry liability insurance to cover potential accidents by users.

Both bills passed with the votes of all seven Democrats on the committee, with the two Republicans either abstaining or voting no. Each bill will now head to a vote of the full Senate.

The hearing was the last for Sen. Hannah-Beth Jackson, D-Santa Monica, who has chaired the committee for the last 6 1/2 years. In comments before the hearing, she also recognized two others who have served on the committee for years, Sen. Bill Monning, D-Carmel, and Sen. Bob Wieckowski, D-Fremont.

Both Jackson and Monning will term out of the Senate this year, but Wieckowski has two more years in office and could be in line to chair the powerful committee next year.