Amazon has historically distanced itself from responsibility for the goods that outside merchants sell, directing consumers instead to the third-party sellers.
The new policy, which begins Sept. 1, may reduce litigation, according to Reuters. Different courts have ruled both that Amazon is and is not liable for harmful or defective products sold on the platform by third-party "marketplace" merchants.
Amazon will vet consumers' claims, including consulting with outside insurance fraud experts, according to CNBC. The $1,000 threshold will cover more than 80% of the claims it faces, news reports said.
Last month, the U.S. Consumer Product Safety Commission filed a lawsuit against Amazon over three sets of products that are allegedly defective and "pose a risk of serious injury or death to consumers."