Commentary
This is a process worth watching closely. Animal health companies have historically wrestled with classification challenges, specifically with products sold under agency agreements whether shipped by the manufacturer or distributor. Liability for product quality is traditionally held by the manufacturer.
The U.S. Consumer Product Safety Commission is preparing an order that could classify Amazon’s online retail business as a distributor of goods. Amazon has long fought the distributor classification arguing that for third-party sales, the company is merely the platform its sellers and buyers use. Therefore, Amazon claims it isn’t responsible for upholding the quality and safety of products sold by outside vendors on its website.
Source: MDM, February 2, 2024. Link.
INSIGHTS: We noted price and margin elements familiar in animal health are apparently not an issue in this classification effort.