CA AB3262

Establishes that electronic retail marketplaces are strictly liable for damages caused by defective products to the same extent as traditional retailers under California product liability law.

Exempts electronic retail marketplaces from liability for preowned or used products prominently described as such, handmade products (under $50,000 annual revenue), auction sales, and products from which the marketplace received no direct or indirect financial benefit.

Allows strict liability to apply to exempted categories (preowned, handmade, auctioned products) if consistent with strict liability policy considerations.

Defines "electronic retail marketplace" as any internet website engaged in placing or facilitating placement of products into California's stream of commerce, including subsidiaries and affiliated companies, regardless of physical presence.

Does not limit existing liability provisions for manufacturers, distributors, sellers, retailers, and suppliers of defective products.