Amazon.com (NASDAQ:AMZN) is at risk of paying $350,000 civil penalty, which was proposed by the Federal Aviation Administration (FAA) of the United States Department of Transportation. The agency alleged that the e-commerce giant violated the Hazardous Material Regulation.
Allegations against Amazon
According to the agency, Amazon violated the regulation after sending a package containing a one-gallon container of “Amazing! LIQUID FIRE,” a corrosive drain cleaner for transportation by air through United Parcel Service (NYSE:UPS) from Louisville, Kentucky to Boulder, Colorado on October 15, 2014.
The FAA said some of the Liquid Fire leaked through the fiberboard box while being transported. Nine UPS employees who came into contact with the box reported feeling a burning sensation. They were treated with a chemical wash.
The agency alleged that the Amazon did not pack the shipment properly and it was not accompanied by a Shipper’s Declaration for Dangerous Goods. The e-commerce giant did not mark or put a proper label on the package to indicate the hazardous nature of its content.
Additionally, the FAA alleged that Amazon failed to provide emergency response information with the package and its employees who handled the package did not receive the required training for hazardous materials.
The agency also noted that Amazon has a history of violating the Hazardous Materials Regulations. In February 2013 to September 2015 alone, the e-commerce giant committed 24 other violations.
The FAA said it is continuing its investigation on Amazon’s compliance with the Hazardous Materials Regulations. The e-commerce giant has 30 days to respond upon receipt of the agency’s enforcement letter.
Amazon expansions
Meanwhile, Amazon announced on Friday that it will open a new fully staffed pickup location near the Texas Tech University campus in the fall this year.
The company also plans to open a new development center in downtown Minneapolis that will create 100 full-time, technology-focused jobs.
The e-commerce giant’s vice president of operations technology, said, “Amazon is always looking for the best and brightest software engineers to join our team. We’re excited to create new technology jobs in Minneapolis and look forward to growing our operations technology team to help us develop cutting-edge software applications that fuel Amazon’s rapidly growing operations, fulfillment and delivery capabilities.”
The e-commerce giant was also reportedly preparing to launch a standalone music streaming service early in the fall. People familiar with Amazon’s plan said the subscription fee for its music streaming service is $9.99 a month.
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