Service detailsHow to Settle Your Prop 65 Case and Release Amazon or Walmart Funds
If your Amazon or Walmart funds are frozen due to a California Proposition 65 lawsuit, defending in court can cost tens of thousands of dollars. Many sellers face these claims over alleged chemical exposure warnings, even when unaware of the requirements. At AMZ Sellers Attorney®, our attorneys negotiate directly with Prop 65 plaintiffs to reach efficient, low-cost settlements and secure the releases Amazon or Walmart need to unfreeze your funds. We minimize your exposure, draft the settlement paperwork, and handle communications so you can get back to selling quickly. 💰 Don’t let a Prop 65 claim hold your business hostage. Start your settlement consultation today: 👉 Request a Free Consultation 
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Proposition 65 Defense & Amazon/Walmart Fund Release
Have you received a 60-Day Notice under California Proposition 65 or had your Amazon or Walmart funds frozen because of a chemical warning violation? AMZ Sellers Attorney® specializes in defending e-commerce sellers and negotiating fast, affordable settlements to lift freezes and avoid lawsuits.
In 2024 alone, we helped dozens of sellers resolve Prop 65 cases, restoring accounts and unlocking over $1.5 million in frozen revenue. From e-commerce legal defense to full compliance audits, we offer comprehensive support so your business can thrive again.
What Is California Proposition 65?
Proposition 65, also known as the Safe Drinking Water and Toxic Enforcement Act of 1986, requires businesses to provide warnings about exposures to chemicals known to cause cancer, birth defects, or reproductive harm. Private enforcers can file lawsuits against companies that sell products in California without the required warnings.
Why Sellers Get Sued
- Missing or inadequate Prop 65 warnings on product listings
- Products containing listed chemicals like lead, BPA, phthalates
- Amazon or Walmart compliance teams flagging listings post-notice
- Private enforcers scanning e-commerce sites for violations
How to Resolve a Prop 65 Case Step-by-Step
Step 1: Contact a Prop 65 Defense Attorney
Time is critical. The 60-day window allows you to settle before a full lawsuit is filed. We assess the notice and reach out to opposing counsel immediately.
Step 2: Fix the Compliance Issue
We help sellers quickly update listings and apply "clear and reasonable" warnings in accordance with California’s regulations—both on products and online.
Step 3: Negotiate an Early Settlement
We engage in early settlement discussions with the plaintiff to reduce penalties and legal fees, while securing fast fund release from Amazon or Walmart.
Step 4: Finalize the Agreement & Recover Frozen Funds
Once terms are agreed upon, we finalize the settlement and coordinate with Amazon or Walmart legal to remove the account hold and release your money.
Free Consultation & Fast Results
We understand the stress of frozen funds and legal threats. That’s why we offer free confidential consultations and aim to resolve most Prop 65 cases in as little as 10–30 days.
Proposition 65 – Seller FAQ
Answers to the most common questions Amazon & Walmart sellers ask.
What is Proposition 65?
California’s Proposition 65 (Safe Drinking Water and Toxic Enforcement Act of 1986) requires
clear warnings before exposing people in California to listed chemicals known to cause cancer or reproductive harm.
Does Prop 65 apply to Amazon and Walmart sellers outside California?
Yes. If you sell or ship to California customers or otherwise cause exposures in the state,
Prop 65 can apply—even if your business is located elsewhere.
What triggers a Prop 65 warning requirement?
If a product, its packaging, or its use can expose Californians to a listed chemical at or above
“safe harbor” levels, a clear and reasonable warning is required unless an exemption applies.
Which chemicals are most common in e-commerce claims?
Frequently cited chemicals include lead, cadmium, phthalates (e.g., DEHP, DINP),
BPA, and certain flame retardants and solvents.
Do small businesses need to comply with Prop 65?
Businesses with fewer than 10 employees are generally exempt from Prop 65 warning requirements.
However, marketplaces and supply-chain contracts may still require compliance.
Do online listings need Prop 65 warnings?
Yes. If a product requires a warning, the warning must appear in the online listing prior to purchase,
and on-product/packaging as applicable.
What is a Prop 65 60-Day Notice?
It’s a pre-suit notice served by a private enforcer or public prosecutor alleging a violation.
After 60 days, they may file a lawsuit if unresolved.
What happens if I ignore a 60-Day Notice?
You risk a lawsuit seeking civil penalties, attorneys’ fees, injunctive relief, mandatory warnings,
and potential marketplace actions (e.g., funds holds, listing removals).
How do I write a “clear and reasonable” Prop 65 warning?
Use California’s model (long-form or short-form, where allowed) with required signal words, chemical
references (if applicable), and the P65Warnings.ca.gov URL. Ensure placement and font size meet the regs.
Long-form vs short-form warnings—what’s the difference?
Long-form names at least one chemical and uses full model language.
Short-form is more compact but limited by packaging size and recent regulation updates—verify current rules before use.
Do I need lab testing to comply?
Testing isn’t mandated, but it’s the most reliable way to assess exposure risk and support your defense.
Alternatives include supplier certifications, bills of materials, and historical data—ideally combined.
What are Prop 65 “safe harbor” levels?
They are regulatory thresholds (MADLs and NSRLs) below which warnings aren’t required.
If exposure is at/under the safe harbor, you may rely on that as a defense with adequate evidence.
How do I add Prop 65 warnings on Amazon and Walmart?
Add the warning text in the required product attribute fields and listing description,
and include compliant on-product/packaging warnings. Keep proof (screenshots, date-stamped updates).
Do Prop 65 warnings hurt sales?
They can affect conversion, but non-compliance risks enforcement actions, penalties,
and marketplace restrictions. Clear, accurate warnings often minimize disruption.
Why are my marketplace funds frozen after a Prop 65 notice?
Platforms may freeze funds when they receive legal notices or court orders.
Funds typically release after settlement, dismissal, or confirmed compliance.
How long do Prop 65 matters take to resolve?
With early settlement and rapid listing/label fixes, many cases resolve in 10–30 days.
Litigation can take months or longer.
How much do Prop 65 settlements cost?
Amounts vary by product, exposure evidence, and negotiation.
Early resolution often costs far less than prolonged litigation and extended fund holds.
Can I settle without admitting liability?
Frequently, yes. Many settlements include “no admission” clauses alongside warning commitments and
civil penalty/fee allocations.
What documents help my defense?
Accredited lab results, supplier certifications, SDS, BOMs, packaging proofs, compliant warning artwork,
and timeline records of corrective actions.
Which product categories are highest-risk online?
Jewelry and fashion accessories (metals), plastics and vinyl goods (phthalates), food-contact items,
drinkware, electronics accessories, and some cosmetics.
Can B2B sellers ignore Prop 65?
No. While consumer warnings are most visible, supply-chain warning obligations also exist.
Contracts often require Prop 65 compliance regardless of end-use.
