Facebook Marketplace Under Regulatory Fire For Alleged Sale Of Recalled Items

Meta Platforms Inc META faces intense scrutiny from bipartisan lawmakers for its alleged leniency on its digital marketplace, Facebook Marketplace, where users reportedly sell recalled items, including products linked to infant fatalities.

Members from Congress have communicated their concerns directly to Meta Platforms CEO, Mark Zuckerberg, highlighting the potential public safety hazards posed by such listings, Wall Street Journal reports.

The global market for second-hand products, estimated at $405.5 billion in 2022, will likely grow at 13.6% CAGR from 2023 - 2031; by 2031, the market will probably gain $1.3 trillion, WSJ writes.

According to the lawmakers, specific recalled items, namely the Fisher-Price Rock 'n Play Sleepers and the Boppy Company's newborn loungers, were listed for sale on Facebook Marketplace. 

These products have been associated with over 100 infant deaths, as informed by the U.S. Consumer Product Safety Commission (CPSC).

The CPSC previously urged sellers to cease listing recalled baby items on online platforms in June. Alex Hoehn-Saric, the agency chair, emphasized that consumers shouldn't be responsible for identifying illicit products. 

While Facebook Marketplace prohibits listings of items like firearms, narcotics, and recalled products, some sellers have discovered ways to bypass the system. 

Addressing the issue, a spokesperson from Meta asserted that while there are instances of people unintentionally or intentionally listing recalled items, the company is proactive in identifying and removing such listings when spotted.

Rep. Jan Schakowsky (D-IL) expressed concern about the inadequate protective measures for U.S. consumers on digital marketplaces. 

The regulators wrote to 16 different online marketplace operators, including the China-based TikTok, which is venturing into the U.S. e-commerce sector.

The authors of the letter, all members of Congress's energy and commerce committee, are awaiting responses from the addressed companies.

Price Action: META shares traded higher by 1.50% at $291.92 on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.