It means that Amazon is responsible for recalling faulty products, not that they're responsible for handling products recalled by the manufacture.

In general, the seller is responsible for the products they sell, regardless of who manufactured it. This gives the buyer a clear party they can sue, likely a party that has a presence in their jurisdiction. Amazon can turn around and go after the manufacture, but that's not the buyer's problem.

Amazon tried to call themselves a "marketplace" to avoid this liability, but nobody's buying that.