Amazon.com Inc. could face more litigation and regulatory scrutiny after a California appeals court rejected the e-commerce giant’s arguments that it is shielded from Proposition 65 claims, environmental attorneys say.

The ruling concerning skin-lightening cream sold on Amazon is heralded by some proponents as the latest decision affirming that consumer protection laws apply equally to the e-commerce giant and its brick-and-mortar counterparts, following its long-time legal strategy of arguing the company is an online marketplace and not a retailer, distributor or manufacturer of third-party products.

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