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"if"
That all goes into lawyers territory though so I'm out. I would assume as the seller they're liable, if they're just providing a shipping service for CheapChineseShitLtd then all bets are off.
hippy-
The reality of this sort of strategy decision is that Amazon will be confident that they can lawyer up and avoid being held liable for as long as possible before actually making any changes. They would probably argue that if the seller claims that the items are compliant, even if it is just a tick box, then they are themselves absolved of liability.
It doesn't matter if they're right or not if they can stick some top level lawyers in the way for a few years. Your opinion is probably perfectly correct. Perfectly correct doesn't matter though if the company in question can kick the can down the road for a few years at the cost of some lawyers bills before being forced to take action.
Stonehedge
Sure, but not in a way that's not going to affect their bottom line and that's going to be a huge part of their process decisions if they can wiggle away from legal liability.