Three associations are warning that a lawsuit brought against the online retail giant Amazon could potentially derail the e-commerce industry, according to the news site MarketWatch.

At issue is a lawsuit brought against Amazon by a Pennsylvania woman after a dog leash she purchased from the company's site snapped and partially blinded her. The leash was sold through a third-party vendor using Amazon's site, but after the lawsuit was filed no representatives from the vendor could be tracked down. A lower court ruled in December 2017 that Amazon's business model protected it from this kind of lawsuit.

However, the Third Circuit Court of Appeals recently reinstated the case in a 2-1 decision. Amazon opposes the reinstatement, arguing that the 1996 Communications Decency Act shields companies from liability from what third parties post on their websites. Attorneys representing the plaintiff argue the company is interpreting the law too broadly.

The Internet Association, Computer & Communications Industry Association and TechNet are asking the court to rehear the case and reverse the reinstatement. They argue the U.S. economy could lose $440 million in gross domestic product and 4.25 million jobs over 10 years if the protections under the Communications Decency Act are chipped away, MarketWatch reported.

"The negative consequences from the decision would thus impose significant costs on individuals and the U.S. economy far beyond" the parties in the case, the groups said.

MarketWatch noted it is rare for any circuit court to agree to a rehearing after a three-judge panel has made a decision. https://on.mktw.net/2GDi6nM