Etsy, Seller Sued after Heartbreaking Death of a Child – EcommerceBytes

A mom is suing Etsy and a seller after her son was accidentally strangled to death in 2016 when wearing a teething necklace that a friend had purchased on Etsy.

CBS covered the heartbreaking story after Etsy appeared in court on Monday to object to the case – the judge overruled the “demurrer.”

The news reporter published Etsy’s Terms of Use where it states that the company makes no warranties about the quality, safety, or legality of the items that are produced and listed by independent sellers. “Any legal claim related to an item you purchased must be brought directly against the seller of the item. You release Etsy from any claims related to items sold through our Services…”

But the mom’s lawyer said she didn’t agree to the terms of use since the item was given to her as a gift. The seller is reportedly located in Lithuania.

We have a question in to Etsy about its policies and resources for sellers of children’s items, and if had made any changes to policies around children’s products.

Some sellers won’t list without product liability insurance, but many sellers don’t even think about issues of product safety when selling online. That’s a big mistake, and this case is a reminder to sellers about the safety of the products they sell and the liability they face.

Etsy has insurance policies that “cover a number of risks and potential liabilities, such as general liability, property coverage, errors, and omissions liability, employment liability, business interruptions, data breaches, crime, product liability, and directors’ and officers’ liability,” though we’re not sure of how of if that might help them in this case.

Ten years ago, this was a big issue when the Consumer Product Safety Commission instituted new rules requiring manufacturers of children’s toys (including artisans) to certify that their products have been tested by an authorized third-party laboratory.

While we’re on the topic of product safety, do you regularly check your items to see if they’ve been recalled?

Don’t just do it to spare yourself a lawsuit – you could avoid putting someone’s life in danger.

UPDATE: An Etsy spokesperson provided the following statement: “Deacon’s death was a great tragedy and our hearts are with his mother and family. While we understand the desire to take action, Etsy is a platform and did not make or directly sell this item. We believe the allegations should be directed at the criminally-negligent daycare providers or, if appropriate, the seller of the necklace. The seller has not had any products on our website since last year and we do not represent the seller in any way.”

Ina Steiner

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She’s a widely cited authority on marketplace selling and is author of “Turn eBay Data Into Dollars” (McGraw-Hill 2006). Her blog was featured in the book, “Blogging Heroes” (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.