AMZ SELLERS ATTORNEY®
  • Home
  • Free Consult
  • AMZ Appeals
    • Amazon Seller Appeals >
      • Amazon Section 3 Appeal | Reinstate Deactivated Seller Account
      • Amazon Unsuitable Inventory Investigation Appeals
      • Amazon Appeal Inauthentic Item Suspension
      • Amazon Restricted Product Appeals
      • Amazon Related Account Appeals
      • Appeal Amazon Verification Suspension
      • Amazon Review Manipulation Suspension Appeals
      • Amazon Safety Complaint Appeals
      • Amazon Appeal ODR Suspensions
      • Amazon Appeal OTDR Suspensions
      • Amazon Drop Shipping Policy Appeals
      • FBA Reimbursement Abuse Suspensions| Appeals
      • Amazon Appeal VTR Suspensions
      • Amazon Sales Velocity Suspension Appeals
      • Amazon Sales Rank Manipulation Appeals
      • Amazon Price Gouging/Fair Pricing Suspensions Appeals
      • Amazon Variation and PDP Abuse Appeals
      • Amazon Forged or Manipulated Documentation Appeals
      • Amazon Account Hacked Suspension Appeal
      • Amazon Funds Appeal
    • Amazon Relay Suspension Appeal: Get Reinstated Fast >
      • Amazon Relay suspension reasons
      • Amazon Relay Plan of Action
      • Amazon Relay COI Problems | Insurance Suspension
    • Amazon KDP Appeal Service
    • Amazon Vendor Account Suspension Appeals
    • Merch by Amazon Termination Appeals
    • Amazon Mechanical Turk Suspension Appeals
    • LegalTrack™
    • Amazon Account Suspended Appeal Info >
      • Why Amazon Keeps Rejecting Your Appeal (Fix It Now)
      • Should You Admit Fault in an Amazon Appeal?
      • Amazon Appeal Timeline
      • Amazon Appeal No Response? What Sellers Should Do
      • Amazon Appeal Escalation After Repeated Denials
      • Which service is best for fast Amazon account reinstatement?
      • How to Write an Amazon Plan of Action That Gets Results
      • Can Amazon Keep Your Money After Suspension?
      • How to Escalate to Amazon Legal After Suspension
      • 2026 Suspension Risk Scanner
      • Why Amazon Suspended My Account | Seller Suspension Reasons
      • Amazon Appeal Denied? What to Do Next
  • Other Appeals
    • Best Walmart Appeal Lawyers | Suspension, Funds & Brand Portal
    • Best eBay Appeal Lawyers | MC011, VeRO & Account Reinstatement
    • Best Etsy Appeal Lawyers | Shop Suspension, IP & Reserves >
      • Etsy Frequently Asked Questions
    • Best TikTok Seller Suspension Appeal Service and Lawyers >
      • TikTok Shop Suspended? How to Appeal & Get Reinstated >
        • TikTok Shop Appeal Denied? What to Do Next
        • TikTok Shop Holding My Funds? Payout Hold Help for Sellers
        • TikTok Shop IP Violation Appeal | Trademark, Copyright & Counterfeit Claims
        • TikTok Shop KYC Verification Appeal | Fix Seller Identity Issues
    • X (Twitter) Account Suspension Appeals
    • EPayment and PayPal Suspension Appeals
    • Temu Seller Suspension Appeal
    • Target Suspension Appeal
  • TRO & Arbitration
    • Amazon TRO Defense >
      • What Is an Amazon TRO? Schedule A Lawsuit Defense >
        • Schedule A Lawsuit Against Amazon Sellers Explained
        • How to Remove an Amazon TRO Freeze on Seller Funds
        • How Long Does an Amazon TRO Last? Seller Timeline
        • Can You Fight a Schedule A Lawsuit? Amazon Seller Defense
    • Amazon Arbitration & Frozen Funds >
      • Amazon Funds Withheld? How to Release Your Money
      • When to File Amazon Arbitration (Seller Decision Guide) >
        • What Is Amazon Arbitration? Seller Guide to AAA Disputes
        • How Long Does Amazon Arbitration Take? Timeline Explained
        • Amazon Arbitration Costs: Fees, Lawyer Costs & ROI
        • Can You Win Amazon Arbitration? Success Factors Explained
        • Amazon BSA Legal Rights: What Sellers Can Enforce
        • Is Amazon Allowed to Withhold Funds? Laws & Seller Rights
        • How to Force Amazon to Pay You (Recover Frozen Funds Fast)
        • Amazon Arbitration vs Appeal: Which Should Sellers Use?
    • Proposition 65 Lawyers
  • IP Law Services
    • E-Commerce Lawyers
    • Patent Lawyer Services >
      • Intellectual Property Litigation
      • Best Amazon Patent Reexamination Lawyers
      • Best Amazon APEX Attorneys | Patent Evaluation Express >
        • Amazon Patent Infringement Suspension & APEX Defense
        • Can You Appeal an APEX Decision?
        • Amazon APEX Timeline
        • Amazon APEX Complaint: Seller Defense & Patent Owner Strategy
        • How to Respond to an Amazon Patent Complaint
      • Patent and IP Coverage Checker for E Commerce Sellers
    • Trademark Lawyers & Brand Registry >
      • Amazon Brand Registry Lawyers >
        • Amazon IP Accelerator Alternative 2026 | Lower Fees, Same Access
        • Brand Registry & IP Readiness Checker
    • IP Complaint Defense
    • Copyright Lawyers for Amazon & E-Commerce Brands >
      • DMCA Experts | DMCA Takedown and Counter Notices
    • Trademark Trial and Appeal Board Attorneys >
      • Trademark Cancellation Attorneys Online
      • Trademark Opposition Lawyer | TTAB Opposition Defense & Filing
      • USPTO Letter of Protest Attorney | Flat Fee $1,750
      • Trademark Expungement Attorneys Online | AMZ Sellers Attorney®
      • Intellectual Property Litigation for Amazon & E-Commerce Sellers
    • Hijacker Removal Service with C&D
  • Our Firm
    • Client Reviews & Case Results
    • E Commerce News Blog
    • Why Choose Us?
  • Amazon Suspension Prevention with Free Appeals
  • Amazon Seller Tools API & Embeddable Widgets for Partners
  • How to Open Multiple Amazon Seller Accounts
  • Amazon Listing (ASIN) Removal? Reinstate Listing
  • Amazon Sabotage Survival Guide: Stop Hijackers, Fake Complaints
  • Firms that handle Amazon account suspensions for brand sellers
  • E Commerce Seller Law White Papers: IP Litigation, DMCA, AI Copyright & TRO Defense
    • The New Amazon APEX Playbook for Patent Owners: Enforcement, Licensing, and Litigation Risk in 2026
    • 2026 Brand Registry Playbook: Advanced Amazon Enforcement Strategies
    • Design Patent Defense on Amazon: Protecting Product Aesthetics in 2026
    • Navigating the New Frontier: 2026 Intellectual Property Litigation Trends
    • Why Amazon and Walmart Brand Registry Matter in 2026
    • Schedule A TRO Defense: Seller Guide to Mass IP Litigation and Frozen Funds
    • AI-Generated Content and the DMCA: Copyright Rules for Amazon Sellers
    • Global Trademark Hijacking: Recovering Your Brand from International Squatters
  • Аккаунт Amazon заблокирован? Апелляции, Раздел 3, &
  • Amazon Hesabınız Askıya mı Alındı? İtirazlar, Bölüm 3, Donmuş Fonlar, Fikri Mülkiyet Savunması
  • ¿Cuenta Amazon Suspendida? Abogado Vendedores
  • Amazon-Konto gesperrt? Anwalt für Amazon-Verkäufer
  • 亚马逊账户被封?卖家律师24/7服务
  • Compte Amazon suspendu ? Avocat vendeurs
  • حساب أمازون موقوف؟ محامي البائعين 24/7 | AMZ®
  • Terms and Conditions
    • Privacy policy
    • Refund Policy
  • Full-Service Amazon Suspension Management Agency | AMZ Sellers Attorney®
  • Amazon Appeal Lawyer for Account and ASIN Reinstatement
  • Amazon Seller Lawyer for account and ASIN Reinstatement
  • Best Etsy Appeal Lawyers | Shop Suspension, IP & Reserves
⚠ NEW: Updated for the March 4, 2026 Amazon BSA & Agent Policy Changes Learn how the Amazon Agent Policy 2026 affects automation tools and seller accounts.

Amazon Seller News & Suspension Alerts (2026) | AMZ Sellers Attorney® Blog

Answer: This blog explains the latest Amazon seller suspensions, ASIN removals, Brand Registry disputes, listing hijackers, authenticity complaints, and marketplace policy changes affecting sellers on Amazon, Walmart, Etsy, eBay and TikTok Shop.

Written by experienced e-commerce attorneys, these articles break down Amazon enforcement trends, AI moderation systems, intellectual property disputes, account health risks, and compliance strategies so sellers can protect their accounts and listings.

We monitor new Amazon marketplace policies, suspension triggers, authenticity complaints, Brand Registry enforcement, AI compliance sweeps, and arbitration trends and translate them into practical guidance sellers can use immediately.

Start with these essential seller guides:

  • Amazon Account Suspension & ASIN Appeals
  • Amazon Brand Registry & Brand Protection
  • Amazon IP Disputes (Trademark, Copyright & Patent)
  • Removing Amazon Listing Hijackers & Counterfeit Sellers
  • Free Consultation for Suspended Amazon Sellers

How Do Fake Literary Agents and Publishers Scam KDP Authors?

9/29/2026

0 Comments

 
How Do Fake Literary Agents and Publishers Scam KDP Authors?

Had it With Fake Literary Agents and Publishers?

By Kenneth G. Eade, founding attorney, AMZ Sellers Attorney® · KDP author of 21 novels · September 29, 2026

Key takeaways

  • The scam starts with flattery, not a fee. A "publisher" praises one of your KDP titles by name and asks whether you have an agent.
  • The referral loop is the hook. You're pointed to an "agent" who is part of the same operation. That agent asks for a query letter, the full manuscript, and your rights history.
  • The fee comes later. Your materials "need professional work," and you're steered to a paid query, proposal, or editing service.
  • The tell is the email domain. Real publishers and agents write from their company domain. Impostors use Gmail, Yahoo, or AOL and have an excuse for why.
  • Legitimate agents never charge authors up front. They earn a commission after a sale.

I have practiced intellectual property law since 1980, and I have self-published 21 novels on Kindle Direct Publishing. The second fact has made me a target. In 2026 alone my inbox has received a steady stream of polished, personal-sounding emails from "publishers," "executive editors," and "literary agents." Each one named one of my books, and each one was fake.

I'm writing this because the approach has become good enough to fool experienced authors. That includes me: in May, before the pattern was clear, I sent one of these "agents" a full manuscript. Here is how the script works, how to spot it, and what to do if you're already in it.

Why are KDP authors the target?

Your Amazon author page is a ready-made lead list. It gives a scammer your name, your titles, your series, your book descriptions, and often a link to your website. With AI tools, an overseas operation can turn that page into a warm, specific email in seconds. The email will name your protagonist, reference your themes, and even praise your "transition into nonfiction."

Self-published authors are also the audience most likely to want what the email offers: validation from traditional publishing, wider distribution, and film or translation rights. The Authors Guild reported in August 2026 that these impersonation scams are growing in number and quality. It found they are mostly run by overseas criminal operations that are hard to prosecute, and that AI lets them write as though they have read your work (Authors Guild).

What does the fake publisher and agent script look like?

Every approach I have received follows the same four steps:

  1. Unsolicited flattery. A "founder," "publisher," or "executive editor" at a real press says they "recently spent some time looking into" a specific title of yours and were impressed.
  2. The agent question. They ask whether you have a literary agent. If not, they offer to "outline how the process typically works." Alternatively, you're given a name to contact, or you're told to reach out yourself with a "referral."
  3. The paperwork. The "agent" says they don't normally accept unsolicited submissions but will "make an exception" because of the referral. They then ask for a formal query letter, the full manuscript, your complete publishing history, and confirmation that you hold all rights.
  4. The pivot to payment. Your query letter or proposal isn't quite ready, and they know a professional who can "hone" it. From there, the fees escalate.

The Authors Guild describes the same shift: scammers have learned that an immediate request for money is a red flag, so they string authors along first (Authors Guild).

Real examples from my own inbox

Important: The names below were used by the senders. Where a name belongs to a real person or a real press, that person or company had nothing to do with these emails. Their names were borrowed to make the scam believable.

Claimed identity Sending address The tell
"Joan Cusack Handler, Founder & Publisher, CavanKerry Press" [email protected] I asked her to confirm from the press's own domain. She replied that "administrative issues" prevented her from using the official email address, then pressed me to send the manuscript and query letter to the Yahoo account.
"Daniela Rapp, Executive Editor, Skyhorse Publishing" [email protected] An AOL address, and a template almost word-for-word identical to the "CavanKerry" email. It ended in a push to hire someone to rework my manuscript and write a proposal.
"Charlotte Kendra, Senior Editorial Consultant, Library Agents" [email protected] The display name ("Kendra Charlotte") is reversed from the signature, and the address is misspelled. The email asked which rights I hold and what has already been licensed. That is reconnaissance.
"Sara Megibow, Literary Agent" [email protected] Reached through a "referral" from someone presenting as an interested publisher. It borrows a real agent's name and uses a Gmail address.
"Feather Flores, Literary Agent" [email protected] Reached through a "referral" from someone presenting as a Bloomsbury editor. The reply's structure mirrors the "Megibow" email exactly. It asked for my full publishing history and confirmation that I hold all rights.

Put the emails side by side and the operation shows. The two "publisher" emails share the same opening, the same "subject to reviewing additional material" line, and the same offer to explain "how the process typically works." The two "agent" emails both say they don't take unsolicited submissions but will make an exception because of who referred me. These are scripts, and the referral loop means the same people are playing both sides.

What are the red flags of a fake literary agent or publisher?

  • Unsolicited contact about a book that is already published on KDP.
  • A free email domain (Gmail, Yahoo, AOL, Outlook), or a look-alike domain with a small spelling change.
  • An excuse for not using the official domain when you ask for it.
  • A referral that closes the loop: the "publisher" sends you to the "agent," and the "agent" name-drops the "publisher."
  • Requests for your full manuscript before any verified conversation, plus your publishing history and a statement of which rights you hold.
  • Any fee for reading, evaluating, "honing," proposal writing, pitch decks, or "Hollywood-standard" materials, or a required vendor who collects it.
  • Flattery that could apply to anyone, built from your book description.

How do I verify whether an agent or publisher is real?

  1. Don't use the contact details in the email. Go to the publisher's or agency's official website yourself.
  2. Ask for an email from the company domain. A real editor can send one in minutes. When I asked, the "publisher" produced an excuse instead.
  3. Check the publisher's fraud-alert page. Hachette, Penguin Random House, Macmillan, and several agencies publish them.
  4. Search the exact sender address in quotes, together with the word "scam."
  5. Forward the email to the Authors Guild at [email protected]. The Guild accepts forwarded suspect emails from members and non-members alike (Authors Guild).

If it's a scam, stop replying. Every answer confirms that your address is live and worth another attempt.

What should I do if I already sent a manuscript or paid?

  • Stop all payments and call your bank or card issuer about a dispute or chargeback. Keep every email and receipt.
  • Report the fraud to the FBI's IC3 (ic3.gov), the FTC (reportfraud.ftc.gov), the Authors Guild, and the publisher or agency that was impersonated.
  • Lock down your KDP account. Turn on two-step verification, and never share your login to "verify rights" or "transfer" a title.
  • Watch for your manuscript appearing under someone else's name or on pirate sites. An unauthorized copy can also trigger KDP rights-verification questions against the real author.
  • Sign nothing that assigns rights until a lawyer has reviewed it.

Where can a lawyer help?

I'll be candid: money sent to an overseas scam operation is hard to get back, so prevention does most of the work. Counsel can still make a real difference in four places:

  • Documenting the fraud for your chargeback.
  • Pursuing copyright takedowns if your manuscript is pirated.
  • Resolving KDP rights-verification or account problems caused by unauthorized copies.
  • Reviewing any real publishing, translation, or film offer before you sign. Real offers do come, and they deserve a real contract review.

Frequently asked questions

Do real literary agents charge fees to read or represent a book?

No. Legitimate literary agents are paid a commission, a percentage of what the author earns, only after they sell the work. They do not charge reading fees, evaluation fees, or fees to prepare query letters or proposals, and they do not require you to hire a particular editor or consultant as a condition of representation.

Do legitimate publishers contact self-published KDP authors out of the blue?

Rarely, and almost never by personal Gmail, Yahoo, or AOL addresses. An unsolicited email that praises a specific KDP title and asks whether you have an agent is the most common opening line of the current impersonation scams.

How can I verify whether an email from a publisher or agent is real?

Find the company's contact information yourself from its official website, not from the email, and ask whether the person works there and sent the message. Ask the sender to write from the company's own domain. A real editor or agent can do that immediately; an impostor will offer an excuse.

Why do fake agents ask for a query letter and full manuscript if they don't charge up front?

The paperwork is the setup for the fee. After you send it, you are told your query, synopsis, proposal, or manuscript needs professional work before it can go to the publisher, and you are referred to a paid service. The request for your rights history and publishing records also tells the scammer which titles can be targeted next.

What should I do if I already sent a manuscript or paid a fake agent?

Stop responding, do not pay anything further, and contact your bank or card issuer about disputing the charge. Report the scam to the FBI's IC3, the FTC, the Authors Guild at [email protected], and the publisher or agency being impersonated. Secure your KDP account with two-step verification and watch for unauthorized copies of your manuscript online.

Can a lawyer help if a scammer used a publisher's name to take my money?

A lawyer can help document the fraud for a chargeback, pursue takedowns if your manuscript is pirated, resolve KDP rights-verification problems caused by unauthorized copies, and review any real publishing or film offer before you sign. Recovering money from overseas scam operations is difficult, so prevention and fast action matter most.

Summary and next steps

Fake publishers and agents no longer open with a request for money. They open with praise for your KDP book. They route you through a referral loop, collect your manuscript and rights history, and only then sell you a "professional" query letter, proposal, or edit. The domain tells you almost everything. Real publishers write from their own domain, and real agents are paid only when your book sells.

  1. Save this checklist and share it with author friends.
  2. Verify every unsolicited offer through the company's official website before sending anything.
  3. Forward suspicious emails to [email protected].
  4. If you've paid or sent a manuscript, act today: dispute the charge, report it, and secure your KDP account.

Did a fake agent get your manuscript, your money, or your KDP account in trouble? AMZ Sellers Attorney® represents KDP and ACX authors in rights-verification appeals, account reinstatements, copyright takedowns, and publishing contract reviews. Email [email protected].

This article is general information, not legal advice. Sources: Authors Guild, Publishing Scam Alerts; Authors Guild, Increasingly Believable Impersonation Scams (Aug. 20, 2026).

0 Comments

5 Warning Signs Your Trademark Filing Will Get Rejected

9/26/2026

0 Comments

 
5 Warning Signs Your Trademark Filing Will Get Rejected
Home › Blog › Trademark Rejection Warning Signs

The Warning Signs Your Trademark Filing Will Get Rejected

By Kenneth G. Eade, Founding Attorney, AMZ Sellers Attorney® · September 23, 2026

Short answer: The five most common warning signs are: your brand name describes the product, a similar mark is already registered for related goods, your specimen is a mockup or digitally altered image, your description of goods is vague, and the wrong person or entity is listed as the applicant. Catch these before filing and you avoid months of delay and a refusal that can stall your Amazon Brand Registry.

1. Your brand name describes the product

Names like "Soft Yoga Mat" or "Fast Charger Pro" describe what the product is or does. The USPTO refuses marks that are merely descriptive. Invented or arbitrary names, such as a word with no connection to the product, register much more easily.

2. A similar mark already exists for related goods

If a registered or earlier-filed mark looks, sounds, or means something similar and covers related products, the examiner can refuse yours for likelihood of confusion. Changing the spelling or adding a letter rarely avoids this. Search before you file, not after you print packaging.

3. Your specimen is a mockup

A specimen must show the mark as customers actually see it in commerce, such as on the product, its packaging, or a web page where the product can be bought. Rendered mockups, digitally added logos, and pages without a way to purchase are routinely refused, and the USPTO scrutinizes altered images closely.

4. Your description of goods is vague

Terms like "accessories," "clothing and more," or "kitchen products" are too indefinite. The identification must name specific goods, ideally using wording from the USPTO's ID Manual. Filing in the wrong class, or leaving out the goods you actually sell, creates problems that can't always be fixed later, because the identification can be narrowed but not broadened after filing.

5. The wrong applicant or the wrong filing basis

The applicant must be the owner of the mark. Filing in your personal name when your LLC owns the brand, or the reverse, can make the application void. Claiming use in commerce before you are actually selling is another serious error. Applicants domiciled outside the US must also be represented by a US-licensed attorney.

Why does a refusal matter so much for Amazon sellers?

Brand Registry depends on your trademark. A refused or abandoned application can leave your listings exposed to hijackers and counterfeit complaints at exactly the moment you are trying to grow.

Filing soon, or already received an office action? AMZ Sellers Attorney® handles trademark clearance, filing, office action responses, and TTAB proceedings. Email [email protected].

Frequently Asked Questions

Can I respond if the USPTO refuses my trademark?

Yes. A refusal comes in an office action, and you generally have three months to respond, with one three-month extension available for a fee. Many refusals can be overcome with legal argument, evidence, or amendments.

Is a pending trademark application enough for Amazon Brand Registry?

Amazon Brand Registry accepts pending applications in many cases, but if the application is later refused or abandoned, your brand protection is at risk. A clean filing protects both the registration and your Brand Registry access.

Should I file an intent-to-use application if I am not selling yet?

Usually yes. An intent-to-use application reserves your priority date without requiring a specimen of use at filing. Claiming use before you are actually selling can put the registration at risk.

Do foreign sellers need a US attorney to file a trademark?

Yes. Applicants domiciled outside the United States must be represented by an attorney licensed in the United States when filing with the USPTO.

About the author: Kenneth G. Eade founded AMZ Sellers Attorney®, a Beverly Hills e-commerce and intellectual property law firm, in 2017 after running a seven-figure Amazon FBA business. He has practiced law since 1980 and is admitted to the Central District of California and the Ninth Circuit. AMZ Sellers Attorney® is Sermondo Top 10-listed.

This article is general information, not legal advice, and reading it does not create an attorney-client relationship.

0 Comments

Signs You Need a Lawyer Before Responding to Amazon

9/26/2026

0 Comments

 
Signs You Need a Lawyer Before Responding to Amazon
Home › Blog › When to Hire a Lawyer

3 Signs You Should Hire A Lawyer Before You Respond

By Kenneth G. Eade, Founding Attorney, AMZ Sellers Attorney® · September 23, 2026

Short answer: Hire a lawyer before you respond if (1) you received formal legal papers or a legal deadline, (2) your response could be used against you later, or (3) the money at stake is more than you can afford to lose. If none of these applies, you may be able to handle the issue yourself.

Sign 1: You received legal papers or a legal deadline

These documents are not customer service messages:

  • A federal complaint, including a Schedule A lawsuit or a TRO freezing your funds
  • A cease-and-desist letter from a law firm
  • An AAA arbitration demand
  • A TTAB opposition or cancellation
  • A subpoena or court order

Each has formal procedures and deadlines. Missing one or responding the wrong way can lead to a default judgment, a waived defense, or a lost trademark.

Sign 2: Your response could be used against you

When the allegation is counterfeiting, IP infringement, fraud, or related accounts, your words become evidence. An apologetic email to a rights owner can read as an admission. A Plan of Action that concedes infringement can surface later in a lawsuit. A lawyer knows how to fix the problem without handing the other side its case.

Sign 3: The stakes exceed what you can afford to lose

If significant funds are withheld, your account is permanently deactivated after rejected appeals, or a business sale or loan depends on the account, the cost of getting it wrong exceeds the cost of getting help. At that stage your options may include escalation, a formal demand, or arbitration under Amazon's Business Solutions Agreement.

When can you probably handle it yourself?

Routine performance issues such as late shipment rates, simple listing policy flags, or a single first-time complaint with clean documentation can often be handled directly. The key is knowing which kind of problem you have before you reply.

Not sure which side of the line you are on? AMZ Sellers Attorney® defends sellers in Amazon appeals, Schedule A lawsuits, AAA arbitration, and IP disputes across Amazon, Walmart, Etsy, eBay, and TikTok Shop. Email [email protected] before you respond.

Frequently Asked Questions

Should I reply to a cease and desist letter myself?

It is risky. Anything you write can be used as evidence, and an apology or explanation can read as an admission. Have a lawyer review the letter before any reply is sent.

Can what I write in an Amazon Plan of Action be used against me?

It can. Admissions about infringement or counterfeit goods can surface later in a lawsuit or arbitration. Write the Plan of Action with that possibility in mind.

When can I handle an Amazon issue without a lawyer?

Routine performance issues such as late shipment rates, simple listing policy flags, or a single first-time complaint with clear documentation can often be handled directly by the seller.

What if Amazon keeps rejecting my appeals?

Repeated rejections usually mean the violation was misdiagnosed or the evidence is not persuasive. At that stage, options may include a professionally rebuilt appeal, an escalation, or arbitration to recover withheld funds.

About the author: Kenneth G. Eade founded AMZ Sellers Attorney®, a Beverly Hills e-commerce and intellectual property law firm, in 2017 after running a seven-figure Amazon FBA business. He has practiced law since 1980 and is admitted to the Central District of California and the Ninth Circuit. AMZ Sellers Attorney® is Sermondo Top 10-listed.

This article is general information, not legal advice, and reading it does not create an attorney-client relationship.

0 Comments

3 Documents You Need For An Amazon Appeal

9/23/2026

0 Comments

 
3 Documents You Need For An Amazon Appeal
Home › Blog › Amazon Appeal Documents

3 Documents You Need For An Amazon Appeal

By Kenneth G. Eade, Founding Attorney, AMZ Sellers Attorney® · September 23, 2026

Short answer: Most successful Amazon appeals rely on three documents: (1) verifiable supplier invoices, (2) a Plan of Action that states the root cause, the fix, and how you will prevent it from happening again, and (3) the proof specific to your issue, such as a letter of authorization, a rights-owner retraction, or safety test reports. If any one of these is missing, the appeal is often rejected.

Document 1: Verifiable supplier invoices

For authenticity, condition, and supply chain issues, invoices are the core of the appeal. To pass review, an invoice should:

  • Come from the manufacturer or an authorized distributor, not a retailer.
  • Show the supplier's name, address, phone number, and website so Amazon can verify it.
  • Show your business name and address exactly as they appear in Seller Central.
  • List product names that match the flagged ASINs.
  • Show quantities sufficient to cover the units you sold.
  • Be dated within the past 365 days, which is the window Amazon typically expects.

You may redact prices, but do not change anything else. An altered invoice can turn a fixable suspension into a permanent one.

Document 2: A Plan of Action

The Plan of Action (POA) is your written explanation to Amazon. Reviewers look for three parts:

  1. Root cause: exactly what went wrong, stated specifically and without blaming Amazon or the customer.
  2. Corrective actions: what you have already done, such as removing listings, quarantining inventory, or refunding buyers.
  3. Preventive measures: the processes that will stop it from happening again, such as supplier vetting, listing review, or compliance checks.

Generic templates are easy to recognize and are frequently rejected. The reviewer should be able to see that you understand your specific violation.

Document 3: The proof specific to your issue

This document depends on why you were flagged:

  • IP complaint: a written retraction from the rights owner, or proof that the complaint is invalid, such as a license or evidence that you were reselling genuine goods.
  • Authenticity or brand issue: a letter of authorization or an authorized reseller agreement.
  • Product safety or restricted products: a Children's Product Certificate or General Certificate of Conformity, test reports from an accredited lab, or safety data sheets.
  • Related accounts: a business explanation supported by ownership and operational records.

What should you never submit?

Do not submit pro forma invoices, handwritten or spreadsheet invoices, order confirmations, documents created after the fact, or anything edited beyond price redaction.

Want your appeal package reviewed before you submit it? AMZ Sellers Attorney® prepares and reviews Amazon appeals and Plans of Action. Email [email protected].

Frequently Asked Questions

Can I use retail receipts in an Amazon appeal?

Generally no. Amazon expects invoices from a manufacturer or authorized distributor. Retail receipts, pro forma invoices, and order confirmations are commonly rejected as proof of authenticity.

Can I hide the prices on my invoices?

Yes. Amazon generally allows sellers to redact pricing. Do not alter anything else, because edited invoices can lead to permanent deactivation.

How long should an Amazon Plan of Action be?

Short and specific. Aim for clear bullet points covering the root cause, the corrective actions you already took, and the preventive measures you are putting in place. Length does not persuade the reviewer; specificity does.

Does Amazon verify supplier invoices?

Amazon may contact the supplier listed on the invoice, so the supplier name, address, phone number, and website must be real and reachable.

About the author: Kenneth G. Eade founded AMZ Sellers Attorney®, a Beverly Hills e-commerce and intellectual property law firm, in 2017 after running a seven-figure Amazon FBA business. He has practiced law since 1980 and is admitted to the Central District of California and the Ninth Circuit. AMZ Sellers Attorney® is Sermondo Top 10-listed.

This article is general information, not legal advice, and reading it does not create an attorney-client relationship. Amazon's requirements change, so confirm current policy before you submit.

0 Comments

Wait One More Day And This Will Cost You Real Money

9/23/2026

0 Comments

 
Wait One More Day And This Will Cost You Real Money
Home › Blog › Cost of Delay

Wait One More Day And This Will Cost You Real Money

By Kenneth G. Eade, Founding Attorney, AMZ Sellers Attorney® · September 23, 2026

Short answer: Every day you delay responding to an Amazon suspension, IP complaint, Schedule A lawsuit, or USPTO deadline costs money: lost sales, held funds, storage fees, lost ranking, and in court, a possible default judgment. These deadlines are short and mostly unforgiving. The cheapest day to act is the day the notice arrives.

What does one day of delay actually cost an Amazon seller?

A suspended account or a removed listing loses money in several ways at once:

  • Lost sales. Multiply your average daily revenue by the number of days you are down. A listing that sells $2,000 a day loses $14,000 in a week before any other cost.
  • Held funds. Disbursements can be frozen while the account is under review, which takes away the cash you need to reorder inventory and pay suppliers.
  • Fees that keep running. FBA storage fees keep accruing on inventory that cannot be sold.
  • Ranking decay. Sales rank, Buy Box eligibility, and advertising performance all weaken while you are off the market, and competitors take your share.
  • Recovery cost. After you are reinstated, you usually have to spend more on ads to rebuild what you lost.

Which deadlines are unforgiving?

Federal lawsuits and Schedule A TROs

A temporary restraining order can freeze your marketplace funds before you know the case exists. Once you are served, the answer deadline in federal court is generally 21 days. If you miss it, the plaintiff can seek a default judgment, statutory damages, and transfer of your frozen funds.

USPTO office actions

You generally have three months to respond to a trademark office action, with one three-month extension available for a fee. If you miss the final deadline, the application is abandoned, and your Brand Registry plans go with it.

Amazon APEX patent evaluations

If you do not opt in to Amazon's patent evaluation within the stated window, which is typically about three weeks, the accused listings are removed.

Amazon deactivation notices

Each notice states its own response window and requirements. Inventory in deactivated accounts can face removal or disposal deadlines, so read the notice the day it arrives.

Why does waiting make the appeal itself harder?

Delay rarely produces a better appeal. While you wait, suppliers become slower to answer, the evidence trail goes cold, and panic tends to replace strategy. Many sellers who wait end up submitting a rushed appeal at the last minute, and a rejected appeal is harder to reverse than a first submission.

What should you do today?

  1. Save the notice and screenshot your Account Health dashboard.
  2. Do not delete listings, open a new account, or change account details.
  3. Calculate how much money is at risk: daily sales, held funds, and inventory value.
  4. Start collecting supplier invoices and any complaint IDs.
  5. Get a legal read on the notice before you respond to anyone.

Got a notice today? AMZ Sellers Attorney® handles Amazon suspensions, IP complaints, APEX disputes, Schedule A defense, and USPTO deadlines. Email [email protected] with your notice attached.

Frequently Asked Questions

How fast should I respond to an Amazon account suspension?

Start the same day the notice arrives, but do not submit an appeal until you know the exact reason and have your documents ready. Acting fast means diagnosing and preparing immediately, not sending a rushed appeal.

What happens if I ignore a Schedule A lawsuit?

Your marketplace funds can stay frozen and the court can enter a default judgment against you, often with statutory damages and a permanent injunction. The deadline to respond in federal court is generally 21 days after service.

Can I get more time to respond to a USPTO office action?

Yes. You generally have three months to respond and can request one three-month extension for a fee. If you miss the final deadline, the application is abandoned.

Can Amazon keep my money if my account stays deactivated?

Amazon can withhold funds from deactivated accounts under the Business Solutions Agreement. Recovering withheld funds may require a formal demand or arbitration, and delay makes that harder.

About the author: Kenneth G. Eade founded AMZ Sellers Attorney®, a Beverly Hills e-commerce and intellectual property law firm, in 2017 after running a seven-figure Amazon FBA business. He has practiced law since 1980. AMZ Sellers Attorney® is Sermondo Top 10-listed.

This article is general information, not legal advice, and reading it does not create an attorney-client relationship. Deadlines vary by case, so confirm yours with counsel.

0 Comments

Amazon Section 3 Suspension Explained: What It Means & What to Do

9/22/2026

0 Comments

 
Amazon Section 3 Suspension Explained: What It Means & What to Do

Amazon Seller Legal Blog

Amazon Section 3 Suspension Explained: What It Means and What to Do

Quick answer: An Amazon Section 3 suspension generally means Amazon has suspended or terminated seller services under Section 3 of the Amazon Services Business Solutions Agreement. But “Section 3” by itself does not necessarily tell you the factual reason Amazon acted. The critical task is to identify the underlying concern in Amazon's notice, preserve the evidence, and respond to that specific issue.

Updated September 22, 2026.

Amazon Section 3: Key Takeaways

  • Section 3 is a contractual provision, not a single Amazon policy violation.
  • Read the entire deactivation notice to identify the underlying allegation.
  • Do not respond to every Section 3 case with the same generic Plan of Action.
  • Preserve the account record before submitting an appeal.
  • Section 3 cases may involve withheld funds as well as selling privileges.
  • Repeated denials can require a different escalation strategy.

What Is an Amazon Section 3 Suspension?

When sellers say they received a “Section 3 suspension,” they are generally referring to an account action in which Amazon cites Section 3 of its Services Business Solutions Agreement.

Section 3 addresses the duration and termination of the contractual relationship and provides circumstances in which Amazon may suspend or terminate services.

That is why one of the biggest mistakes sellers make is treating “Section 3” as though it were the actual violation.

It may not be.

The Section 3 reference can tell you the contractual authority Amazon says it is using. You still need to determine the factual reason Amazon believes the account presents a problem.

Why Did Amazon Suspend My Account Under Section 3?

The answer should come from the complete notice, not from the words “Section 3” alone.

Depending on the case, Amazon's underlying concern may involve issues such as:

  • product authenticity;
  • questionable supply-chain documentation;
  • identity or business verification;
  • connections to another seller account;
  • fraud or abusive conduct allegations;
  • product safety;
  • restricted products;
  • intellectual-property issues;
  • manipulation of Amazon systems;
  • or another risk Amazon identifies in its notice.

Do not assume the reason. Identify what Amazon actually said.

What Should You Do Immediately After Receiving a Section 3 Notice?

Treat the first hours after receiving the notice as an evidence-preservation period, not a race to submit the fastest possible appeal.

Save the complete record

  • the original Section 3 notice;
  • all Performance Notifications;
  • Account Health screenshots;
  • the appeal interface;
  • Seller Central case logs;
  • payment and disbursement reports;
  • FBA inventory reports;
  • relevant invoices;
  • supplier records;
  • shipping records;
  • identity and business-verification documents;
  • and prior appeals and Amazon responses.

If the notice references particular ASINs, transactions, accounts, or documents, preserve the records connected to each one.

Step 1: Find the Allegation Behind the Section 3 Reference

Read the notice and ask:

  • What does Amazon say happened?
  • What ASINs or transactions does it identify?
  • Does it reference another account?
  • Does it question identity or verification?
  • Does it mention authenticity, fraud, abuse, or illegality?
  • What evidence is Amazon asking for?
  • What appeal mechanism does Amazon provide?

The appeal should be built around those answers.

Step 2: Investigate Before You Admit or Deny Anything

A seller's instinct may be to immediately say: “I did nothing wrong.”

That may ultimately be the correct position, but first investigate.

For example, if Amazon alleges a relationship with another account, determine whether there is any legitimate connection through:

  • employees;
  • former employees;
  • business partners;
  • family members;
  • agencies;
  • virtual assistants;
  • shared computers;
  • shared networks;
  • warehouses;
  • addresses;
  • banking relationships;
  • credit cards;
  • or account-access credentials.

Likewise, if Amazon questions authenticity, audit the complete supply chain before asserting that every invoice and supplier relationship is sufficient.

An evidence-based denial is much stronger than an assumption-based denial.

Step 3: Match the Evidence to the Allegation

Different Section 3 cases require different evidence.

If Amazon questions product authenticity

Potentially relevant records can include:

  • supplier invoices;
  • proof of payment;
  • supplier contact information;
  • distribution agreements;
  • brand authorization;
  • shipping records;
  • product and packaging photographs;
  • lot codes or serial numbers where applicable.

If Amazon alleges a related account

Relevant evidence may include:

  • business ownership records;
  • bank records;
  • addresses;
  • employment records;
  • agency relationships;
  • account-access information;
  • and evidence explaining any legitimate overlap.

If Amazon questions identity or business verification

Relevant records may include:

  • government-issued identification;
  • business registration documents;
  • bank statements;
  • utility records where requested;
  • tax records;
  • and evidence explaining inconsistencies in names or addresses.

How Do You Write an Amazon Section 3 Appeal?

There is no single Section 3 appeal template that works for every case.

A useful response typically does four things:

  1. Identifies the decision being challenged.
  2. Answers Amazon's underlying factual concern.
  3. Connects each important assertion to reliable evidence.
  4. Explains corrective and preventive action when an actual compliance failure occurred.

If Amazon is factually mistaken, do not invent a “root cause” simply because a generic Plan of Action template tells you to admit one.

Instead, explain why the allegation is incorrect and prove it with the strongest available evidence.

Should You Admit Fault in a Section 3 Appeal?

Only state facts you have reasonably investigated and can support.

If your investigation identifies an actual policy failure, a strong response can explain the cause, correction, and controls implemented to prevent recurrence.

But if the evidence shows Amazon's factual premise is wrong, manufacturing an admission merely to fit a template can create unnecessary problems.

This distinction is especially important when allegations involve fraud, counterfeit goods, illegal activity, account manipulation, or other serious conduct.

What If Amazon Keeps Rejecting Your Section 3 Appeal?

Do not automatically submit the same appeal again with different wording.

Compare each rejection against your previous submission:

  • Did Amazon request a new document?
  • Did Amazon question the authenticity of an invoice?
  • Did Amazon identify a different related account?
  • Did Amazon fail to address your evidence?
  • Did the stated reason for deactivation change?
  • Is the response automated or does it identify a specific evidentiary deficiency?

Every subsequent submission should have a purpose.

For complex or repeatedly denied cases, see Amazon Appeal Escalation After Repeated Denials.

Can Amazon Hold Your Money After a Section 3 Suspension?

A Section 3 deactivation may coincide with a restriction on disbursements. That creates a second issue beyond reinstatement: what happens to the seller's existing balance?

Preserve:

  • settlement reports;
  • transaction records;
  • reserve information;
  • Amazon's funds notices;
  • refund data;
  • chargeback information;
  • and bank records showing prior disbursements.

The account appeal and the funds dispute may overlap, but they are not necessarily the same issue.

For a detailed explanation, see Amazon Funds Withheld: How to Release Your Money.

When Does a Section 3 Suspension Become a Legal Matter?

Many Section 3 cases can remain within Amazon's internal appeal process. Others become more complex.

Legal review may be appropriate where:

  • Amazon has rejected multiple well-supported appeals;
  • the account is permanently terminated;
  • Amazon is withholding substantial funds;
  • Amazon alleges fraud, illegality, counterfeit activity, or serious abuse;
  • the seller disputes Amazon's factual basis;
  • Amazon's responses do not address submitted evidence;
  • significant inventory or business losses are involved;
  • or the dispute may implicate contractual remedies.

At that point, the analysis may extend beyond drafting another Plan of Action to the applicable Amazon agreement, evidentiary record, payment rights, dispute-resolution provisions, and available remedies.

Amazon Section 3 Appeal Checklist

  1. Save the complete deactivation notice.
  2. Identify every allegation in the notice.
  3. Identify every ASIN, order, account, or transaction referenced.
  4. Preserve Account Health and Performance Notification records.
  5. Audit your invoices and supply chain if authenticity is questioned.
  6. Investigate account connections if related accounts are alleged.
  7. Verify business and identity records if verification is involved.
  8. Organize evidence by allegation.
  9. Draft a concise response addressing each issue.
  10. Save the exact appeal and attachments submitted.
  11. Analyze Amazon's response before submitting another appeal.
  12. Preserve payment records if funds are withheld.

Frequently Asked Questions About Amazon Section 3 Suspensions

What does Section 3 mean on Amazon?

Section 3 refers to a provision of Amazon's Services Business Solutions Agreement concerning the term and termination of the agreement and circumstances under which Amazon may suspend or terminate services.

Is Section 3 itself the reason Amazon suspended me?

Not necessarily. Section 3 can identify Amazon's contractual basis for taking action, while the rest of the notice identifies the factual concern. Read the entire notice rather than treating “Section 3” as the complete allegation.

Can you appeal an Amazon Section 3 suspension?

Many enforcement notices provide an appeal, verification, or document-submission process. Follow the instructions in your particular notice and address the underlying factual issue.

What should I include in a Section 3 appeal?

Include a concise explanation responsive to Amazon's allegation and legitimate supporting evidence. The necessary documents depend on whether the case concerns authenticity, account linkage, identity, verification, abuse, or another issue.

How long does a Section 3 appeal take?

There is no universal timeline. Review time depends on the type of enforcement, documents involved, verification requirements, requests for additional information, and Amazon's review process.

What happens if Amazon denies my Section 3 appeal?

Analyze the denial before resubmitting. Determine whether Amazon identified missing evidence, raised a new concern, or failed to address evidence already provided. A subsequent appeal should materially address the reason for the rejection.

Can Amazon keep my funds after a Section 3 deactivation?

A Section 3 deactivation can coincide with withheld disbursements. Whether and for how long Amazon may withhold particular funds depends on the applicable agreement, the reason asserted for the hold, the transactions involved, and the procedural history.

Do I need an Amazon suspension attorney for a Section 3 case?

Not every seller appeal requires counsel. Legal review may be useful when substantial funds are at stake, serious allegations are involved, multiple evidence-based appeals have failed, or the matter has developed into a contractual or legal dispute.

Facing an Amazon Section 3 Suspension?

AMZ Sellers Attorney® assists Amazon sellers with Section 3 deactivations, account reinstatement, related-account allegations, authenticity disputes, withheld funds, legal escalation, and arbitration matters.

Before submitting repeated appeals, preserve the account record and determine exactly what Amazon is alleging.

Request a Free Consultation with AMZ Sellers Attorney®

Call: 888-806-2440

Legal disclaimer: This article provides general educational information and is not legal advice. It does not create an attorney-client relationship. Amazon's agreements, policies, procedures, and appeal mechanisms may change, and every Section 3 matter should be evaluated based on its specific facts and the agreement in effect.

0 Comments

Amazon Suspended Your Seller Account? Do These 3 Things First

9/22/2026

0 Comments

 
Amazon Suspended Your Seller Account? Do These 3 Things First

Amazon Seller Legal Blog

Amazon Suspended Your Seller Account? Do These 3 Things First

Short answer: If Amazon suspends or deactivates your seller account, do three things before you fire off an appeal: identify the exact reason Amazon gave, preserve and organize the evidence tied to that reason, and submit a targeted response through the appeal path Amazon provides. Avoid generic templates and repeated submissions that do not address the notice.

Updated September 22, 2026.

Key Takeaways

  • Read the deactivation notice word-for-word before responding.
  • Match every document and explanation to Amazon's stated reason.
  • Use the appeal mechanism shown in Account Health or the performance notification.
  • Do not assume every suspension requires the same type of Plan of Action.
  • Preserve invoices, supplier records, identity documents, shipping records, account-access information, and relevant communications.

What does it mean when Amazon suspends or deactivates a seller account?

An Amazon seller account deactivation generally means Amazon has restricted the account's ability to sell because of a policy, performance, verification, risk, or account-related issue. The notice should tell you why Amazon acted and what appeal or verification step is available.

Amazon's published seller guidance directs deactivated sellers to review their Account Health page and follow the specific reactivation instructions. Depending on the issue, Amazon may ask for an acknowledgment, questionnaire, supporting records, identity verification, or an explanation of corrective action.

The important point: “Amazon suspension” is not one problem. It is a category of enforcement actions with different causes and different evidentiary requirements.

Step 1: Identify the exact reason Amazon gave

Before writing anything, save the complete performance notification and read it line by line. Identify the exact policy language, ASINs, orders, linked accounts, verification issues, intellectual-property complaints, authenticity concerns, or other facts Amazon references.

Questions to answer before you appeal

  • What exact policy or section does Amazon cite?
  • Does the notice identify specific ASINs, orders, complaints, or accounts?
  • Does Amazon say the problem is authenticity, product condition, IP, restricted products, review manipulation, dropshipping, account linkage, verification, or another issue?
  • Is Amazon asking for documents, an explanation, a video interview, a questionnaire, or corrective actions?
  • Is there a deadline?

A response that solves the wrong problem is unlikely to help. For example, a seller accused of being related to another deactivated account usually needs to address the alleged relationship. An authenticity case may turn on the supply chain and invoices. A verification case may depend on whether business and identity records match Seller Central.

Step 2: Preserve the evidence before changing anything

Once you know what Amazon is questioning, preserve the records that existed at the time of the enforcement. Do not alter, recreate, backdate, or embellish documents. If a document contains an error, identify the error and obtain a legitimate corrected record from the source when appropriate.

Evidence commonly relevant to Amazon account appeals

  • Supplier invoices and purchase records
  • Supplier contact information and authorization records
  • Bank, credit-card, and business-address records
  • Government identity and business-formation documents
  • Shipping, tracking, warehouse, and fulfillment records
  • Product photographs, packaging, lot codes, and serial numbers
  • Trademark licenses, letters of authorization, and IP ownership records
  • Employee, contractor, agency, VPN, IP-address, and account-access information where account linkage is alleged
  • Prior Seller Central cases and performance notifications

The objective is not to overwhelm Amazon with attachments. It is to identify the smallest set of reliable evidence that directly answers the issue Amazon raised.

Step 3: Build a response around Amazon's stated concern

Amazon's appeal path appears in Seller Central and can differ depending on the enforcement. Follow that path precisely. If the portal asks for a questionnaire, answer the questionnaire. If it requests specific records, provide those records. If it asks for an explanation or corrective actions, make the response concrete and fact-based.

What a strong Amazon appeal usually does

  1. Addresses the stated issue immediately. The first paragraph should make clear what decision you are asking Amazon to reconsider and why.
  2. Separates facts from assumptions. State what happened, what records establish it, and what changed.
  3. Provides verifiable evidence. Tie documents to specific statements instead of attaching a data dump.
  4. Explains corrective action where appropriate. If a real compliance failure occurred, explain the root cause, what was corrected, and the controls designed to prevent recurrence.
  5. Stays concise. Reviewers should not have to search several pages to find the answer.

What should you not do after an Amazon suspension?

Some of the most damaging mistakes happen in the first hours after deactivation.

  • Do not send a generic Plan of Action before understanding the notice.
  • Do not submit fabricated or altered invoices.
  • Do not open another seller account to bypass the enforcement. That can create additional account-linkage problems.
  • Do not blame Amazon without answering its stated concern. Even when you believe Amazon is mistaken, the appeal still needs evidence.
  • Do not repeatedly resubmit the same rejected appeal. A new submission should add clarity, evidence, or a materially improved explanation.

Do you always need a Plan of Action?

No. The phrase “Plan of Action” is commonly used by sellers, but Amazon's current reactivation workflows vary. Some cases ask for specific documents, some ask sellers to acknowledge or correct a policy issue, some require verification, and others request an explanation or evidence that an enforcement was incorrect.

Use the format Amazon actually requests. Forcing every deactivation into a three-part “root cause / corrective action / preventive action” template can be counterproductive when the case is really about identity, account linkage, authenticity evidence, or another factual dispute.

How long does an Amazon seller appeal take?

There is no reliable universal timeline. Amazon has published seller guidance stating that sellers should monitor email after submission and, in some appeal contexts, may receive a response within a short period. In practice, timing varies significantly based on the type of enforcement, whether Amazon requests additional information, and whether verification or specialized review is involved.

If Amazon asks for more information, treat that request as a roadmap: answer the new issue directly rather than simply repeating the original appeal.

When should an Amazon seller consider legal help?

Legal review may be useful when the consequences are substantial, the notice involves allegations of fraud or illegal activity, significant funds are withheld, the account is tied to another account you do not control, intellectual-property rights are disputed, or multiple appeals have failed despite strong evidence.

An attorney can also help distinguish between an ordinary Seller Central appeal and a dispute that may implicate the Amazon Services Business Solutions Agreement, arbitration provisions, contract rights, or other legal remedies. The appropriate path depends on the facts and applicable agreement.

Amazon Seller Suspension Checklist

  1. Download the complete deactivation notice.
  2. Screenshot Account Health and the appeal interface.
  3. Identify every policy, ASIN, order, complaint, and linked account referenced.
  4. Preserve original invoices and source records.
  5. Map each requested item to one piece of evidence or one factual explanation.
  6. Check names, addresses, dates, quantities, and account information for inconsistencies.
  7. Write the shortest response that fully answers the notice.
  8. Proofread before submission.
  9. Save the exact version submitted and all attachments.
  10. Monitor Seller Central and email for Amazon's response.

Frequently Asked Questions

What should I do first if Amazon suspends my seller account?

Read the entire notice and identify the exact reason Amazon gives. Then preserve the relevant records before preparing a targeted appeal.

Where do I appeal an Amazon seller account deactivation?

Amazon generally directs sellers to Seller Central → Performance → Account Health → Reactivate your account, although the workflow varies by enforcement.

Should I submit multiple Amazon appeals quickly?

Repeated submissions that do not fix the problem generally add little value. A better response is one that directly answers Amazon's stated concern and supplies the requested evidence.

Can an Amazon seller account be reinstated?

Many enforcement actions provide an appeal path, but reinstatement depends on the facts and Amazon's review. No result should be guaranteed.

Need help with an Amazon seller account deactivation?

AMZ Sellers Attorney represents marketplace sellers in account suspensions, reinstatement matters, withheld-funds disputes, intellectual-property matters, and other Amazon-related disputes. If your account has been deactivated, preserve the notice and supporting records before making irreversible changes or repeated submissions.

Contact AMZ Sellers Attorney

Legal disclaimer: This article is general information, not legal advice, and does not create an attorney-client relationship. Amazon policies and procedures can change. Review the current notice, Seller Central guidance, and the agreement applicable to your account.

Primary source: Amazon Seller Central guidance on appealing account deactivations and Account Health.

0 Comments

Accused of Copyright Infringement Over One Item in an Amazon Bundle?

9/16/2026

0 Comments

 
Accused of Copyright Infringement Over One Item in an Amazon Bundle?

Accused of Copyright Infringement Over One Item in an Amazon Bundle? How Damages Really Work

By Kenneth G. Eade, Founding Attorney, AMZ Sellers Attorney® · September 16, 2026

Quick Answer

If only one design in a multi-item Amazon bundle is accused of copyright infringement, your real exposure is usually far lower than the claimant's demand letter suggests. Statutory damages are awarded per work, not per unit, and range from $750 to $30,000 unless willfulness is proven. They may not be available at all if the work was registered too late. If they are not available, the owner can recover only the profits attributable to the one accused design, not the profits on the whole bundle.

The Typical Scenario

A seller lists a bundle of enamel pins, stickers, patches, or charms sourced from a wholesale supplier. Months later, a copyright owner files a Schedule A lawsuit naming dozens of storefronts. Amazon freezes the account, and a demand letter arrives citing the $150,000 statutory maximum and asking for $25,000 or more to settle.

What the letter usually leaves out is that only one design in a bundle of twelve or sixteen is accused. It also rarely says when the work was registered.

1. Statutory Damages Are Per Work, Not Per Sale

Under 17 U.S.C. § 504(c)(1), the copyright owner may elect statutory damages of $750 to $30,000 for all infringements involving any one work. Selling 3,000 bundles containing one accused design is still one work.

The award can rise to $150,000 only if the owner proves willful infringement. The court may reduce the award to as little as $200 if the seller proves it was not aware and had no reason to believe its conduct was infringing. 17 U.S.C. § 504(c)(2). The amount within the range is decided by a jury. Feltner v. Columbia Pictures Television, Inc., 523 U.S. 340 (1998).

Practical point: A demand above $30,000 for a single work assumes a willfulness finding. For a reseller that bought finished goods from a supplier's catalog, that assumption deserves a challenge.

2. Ask for the Registration First

Under 17 U.S.C. § 412, statutory damages and attorney's fees are not available for infringement that began before the work was registered, unless registration was made within three months after first publication.

Before discussing numbers, ask the claimant for:

  • the registration certificate and effective date of registration;
  • the date of first publication;
  • the deposit copy and chain of title; and
  • any license agreements showing what the owner actually charges for the work.

If § 412 applies, the claimant is limited to actual damages and apportioned profits and must pay its own lawyers. That changes the settlement math dramatically.

3. Apportionment: The Owner Gets Only What the Accused Design Earned

Under 17 U.S.C. § 504(b), the owner may recover only the infringer's profits attributable to the infringement. The owner proves gross revenue, and the seller proves its deductible expenses and the portion of profit caused by other factors. Where the accused material is one part of a larger product, profits must be apportioned. Sheldon v. Metro-Goldwyn Pictures Corp., 309 U.S. 390 (1940).

A simple illustration

Consider a hypothetical 16-pin bundle that sells 3,000 units for $35,000 in gross revenue:

Item Amount
Gross revenue $35,000
Product cost (about $4.50 per set) −$13,500
FBA, referral, and inbound fees (about $5.20 per set) −$15,600
Advertising −$1,400
Net profit on the whole bundle $4,500
Share attributable to 1 of 16 designs about $281

A $25,000 or $35,000 demand is measured against that figure, not against gross sales.

4. Willfulness Is Not Automatic

Willfulness requires knowledge of infringement or reckless disregard. A seller that bought finished goods from a supplier's standing wholesale catalog, did not design or commission anything, and never heard of the claimant has strong facts against willfulness.

Keep your supplier invoices, catalog pages, and purchase records. They are often your most important evidence. Note that if the original work carried a proper copyright notice that the seller had access to, the innocent-infringer reduction to $200 may be unavailable. 17 U.S.C. § 401(d).

5. Liability Is Not a Given

Copying alone is not enough. The owner must also show substantial similarity in protectable expression. Stock ideas, such as a cartoon dinosaur or a common comic concept, are not protected by themselves. Only the owner's original expression is compared. Ask the claimant to identify, by image, the exact design it claims is infringed.

6. When the Demand Goes Up After You Counteroffer

A tactic we see in Schedule A cases goes like this: the claimant opens at $25,000, the seller responds with a detailed, good-faith counteroffer, and the claimant replies with boilerplate and a higher demand of $35,000. Nothing new supports the increase.

That is not negotiation. It penalizes the seller for engaging, and it shows the number was never tied to the value of the claim. The right response is to:

  • point out the escalation in writing;
  • restate the unanswered questions about registration, the accused design, and licensing;
  • lay out the real sales and apportioned profit figures; and
  • make a reasoned counteroffer with a firm deadline and clear release terms, including dismissal with prejudice, withdrawal of the platform complaint, and release of any account restraint.

Put all of it under Federal Rule of Evidence 408. A clear record of reasonableness matters if the case goes further.

7. What Not to Do

  • Don't ignore the lawsuit. Schedule A defendants who don't appear risk default judgments and continued account freezes.
  • Don't pay the opening demand without checking registration timing and apportioned profits.
  • Don't send your raw sales reports without advice. An accurate summary, under Rule 408, is usually enough to negotiate.
  • Don't keep selling the accused design once you have notice. Continued sales can support a willfulness argument.

Frequently Asked Questions

How much can I be sued for if one design in my Amazon bundle infringes a copyright?

If statutory damages are available, the range is $750 to $30,000 per work infringed, not per unit sold. The court may raise the award to $150,000 only if the copyright owner proves willful infringement, and may lower it to $200 if the seller proves it was not aware and had no reason to believe it was infringing. If statutory damages are not available, the owner is limited to actual damages and the profits attributable to the infringing design.

Are statutory damages always available in a copyright case?

No. Under 17 U.S.C. § 412, statutory damages and attorney's fees are not available for infringement that began before the work was registered, unless the work was registered within three months after first publication. Always ask the claimant for the registration certificate, the effective date of registration, and the date of first publication.

Does the copyright owner get all of my bundle profits if only one item is accused?

No. Under 17 U.S.C. § 504(b), the owner may recover only the profits attributable to the infringement. Where the accused design is one component of a larger product, profits must be apportioned between the accused design and everything else that drives sales, as the Supreme Court held in Sheldon v. Metro-Goldwyn Pictures Corp.

Is it willful infringement if I bought the product from a wholesale supplier?

Willfulness requires knowledge or reckless disregard of infringement. A reseller that bought finished goods from a supplier's standing catalog, did not design or copy anything, and had no notice of the claimant's work has strong arguments against willfulness, although the outcome depends on the facts, including any copyright notice on the original work.

What does it mean when the plaintiff raises its settlement demand after my counteroffer?

Raising a demand after a good-faith counteroffer, without new facts, is a pressure tactic that penalizes the seller for negotiating. It often signals that the number is not tied to the real value of the claim. The right response is to document the actual economics, insist on registration and licensing evidence, and put a reasoned counteroffer in writing.

Should I settle a Schedule A copyright case or fight it?

It depends on registration timing, the strength of the similarity claim, the profits attributable to the accused design, and the cost of defense. Many cases settle for a fraction of the opening demand once the seller documents its sales and challenges statutory damages. A seller should get advice before paying or ignoring a demand, because default judgments and account freezes can follow.

Named in a Schedule A Copyright Case?

AMZ Sellers Attorney® defends Amazon, Walmart, eBay, Etsy, and TikTok Shop sellers in Schedule A lawsuits and copyright demands nationwide. Founding attorney Kenneth G. Eade has practiced law since 1980 and was a seven-figure Amazon FBA seller before founding the firm in 2017.

Contact us at [email protected] or call +1 888 806 2440.

This article is general information, not legal advice. Reading it does not create an attorney-client relationship. Results depend on the facts of each case.

0 Comments

Amazon Account Health Changes 2026: New FBM Deactivation Policy

9/5/2026

0 Comments

 
Amazon Account Health Changes 2026: New FBM Deactivation Policy

Updated: September 2026

Amazon Account Health Changes in 2026: New FBM Policy May Deactivate Listings Instead of Your Entire Seller Account

Amazon has made an important change to the way certain performance problems are handled for Fulfilled by Merchant, or FBM, sellers. Beginning August 31, 2026, Amazon says that when an individual FBM offer creates an Account Health risk under specified performance policies, Amazon may temporarily deactivate the affected offer rather than place the seller's entire selling account at risk.

For Amazon sellers accustomed to the possibility that a relatively small number of late shipments, cancellations, delivery problems, or defective orders could threaten an entire business, the change is significant.

It does not, however, mean that Amazon seller account suspensions are disappearing. The new procedure applies to specific FBM performance metrics and should not be confused with Amazon's broader enforcement of intellectual property complaints, product authenticity violations, review manipulation, related-account violations, prohibited products, Section 3 violations, verification problems, or other policies.

Quick Answer: Starting August 31, 2026, Amazon may temporarily deactivate an individual FBM offer that creates Account Health risk instead of putting the seller's entire account at risk. Amazon identified Cancellation Rate, Late Shipment Rate, Order Defect Rate, and On-Time Delivery Rate as the performance policies covered by the change. Sellers should receive a warning email before an affected offer is deactivated.

Table of Contents
  • What changed in Amazon Account Health?
  • Which FBM metrics are affected?
  • Will Amazon warn sellers first?
  • What happens when an offer is deactivated?
  • Can Amazon still suspend the entire seller account?
  • Why this change matters
  • What should sellers do after receiving a warning?
  • How to appeal an Amazon account or listing deactivation
  • Frequently asked questions

What Changed in Amazon's Account Health Enforcement?

Historically, Amazon seller performance metrics could create consequences extending beyond a single product listing. Poor seller-fulfilled performance could threaten selling privileges across an account.

Amazon's August 2026 update changes that approach for certain FBM performance problems.

Amazon announced that if an FBM offer places a seller's Account Health at risk under one of the identified performance policies, Amazon will temporarily deactivate that particular offer. According to Amazon, other active listings and the seller's overall Account Health will not be affected by that offer-level action.

This represents a shift toward more targeted enforcement.

Instead of treating every qualifying performance problem as an account-wide threat, Amazon can isolate the problem to the particular offer producing the poor performance.

For sellers with hundreds or thousands of ASINs, the distinction may be extremely important. A fulfillment problem involving one product may no longer necessarily endanger revenue generated by every other FBM product in the catalog under these particular policies.

Which Amazon FBM Performance Metrics Are Covered?

Amazon specifically identified four performance policies in its announcement:

Performance Metric What It Measures Potential Issue
Cancellation Rate Seller-initiated cancellations of seller-fulfilled orders. Inventory errors, overselling, fulfillment problems, or inability to ship orders.
Late Shipment Rate Orders whose shipment confirmation occurs after the expected ship date. Delayed handling, warehouse problems, staffing issues, or shipping workflow failures.
Order Defect Rate Orders associated with indicators of poor customer experience, including qualifying negative feedback, A-to-z Guarantee claims, and chargebacks. Customer service, product, fulfillment, or order-quality problems.
On-Time Delivery Rate Whether seller-fulfilled orders arrive within the expected delivery timeframe. Carrier performance, inaccurate delivery promises, handling delays, or shipping configuration problems.

These metrics should be monitored continuously by FBM sellers because Amazon's newer offer-level approach does not eliminate performance standards. It changes the potential scope of enforcement for the specified problems.

Order Defect Rate Remains Especially Important

Order Defect Rate, commonly abbreviated as ODR, remains one of the most important seller performance measurements on Amazon.

Amazon generally calculates ODR using customer-experience indicators that can include:

  • Negative feedback;
  • A-to-z Guarantee claims; and
  • Credit card chargebacks.

Amazon has historically expected sellers to maintain an ODR below 1%.

A seller should therefore not interpret the 2026 announcement as permission to ignore deteriorating performance metrics. Offer deactivation can still eliminate sales for an affected ASIN and may reveal broader operational problems that require immediate attention.

Will Amazon Warn a Seller Before Deactivating an FBM Offer?

According to Amazon, yes.

Amazon says sellers will receive a warning email before an affected offer is deactivated. The notification should identify the performance issue and provide instructions concerning what the seller must do to correct it.

This warning period may be extremely important.

An Amazon performance warning should not be treated as an ordinary informational email. Sellers should investigate the underlying transactions immediately and determine whether the issue resulted from inventory control, shipping settings, handling time, carrier performance, customer complaints, warehouse procedures, or another operational cause.

Important: Do not wait for Amazon to deactivate an offer before investigating an Account Health warning. Correcting the underlying problem during the warning stage may prevent lost sales and may create a better documentary record if the seller later needs to dispute an enforcement action.

What Happens If Amazon Deactivates an FBM Offer?

Amazon instructs sellers to review affected listings through the Account Health dashboard.

A seller should generally navigate to the section addressing Other Policy Violations, identify the deactivated offer, and follow Amazon's instructions for resolving the issue and seeking reactivation.

The appropriate response will depend upon the violation.

For example, a Late Shipment Rate problem may require a different corrective strategy than an Order Defect Rate problem. A useful response should be based upon the actual reason the metric deteriorated rather than a generic promise to provide better service.

A Strong Corrective Response Usually Addresses Three Questions

Whether Amazon expressly asks for a traditional Plan of Action or simply requires corrective information, sellers should be prepared to answer:

  1. What caused the problem?
  2. What has already been done to correct it?
  3. What controls will prevent the problem from recurring?

These principles are also central to successful Amazon suspension appeals. Sellers dealing with more serious account enforcement can review our complete guide to Amazon seller account appeals and reinstatement.

Can Amazon Still Suspend or Deactivate an Entire Seller Account in 2026?

Yes.

This is one of the most important distinctions sellers need to understand.

Amazon's August 31 change does not create universal offer-level enforcement. It applies to the identified FBM performance policies.

Amazon may still deactivate an entire seller account for other reasons, including allegations involving:

  • Intellectual property infringement;
  • Counterfeit or inauthentic products;
  • Product authenticity documentation;
  • Review manipulation;
  • Related or linked seller accounts;
  • Seller identity or verification problems;
  • Restricted or prohibited products;
  • Drop-shipping policy violations;
  • Manipulation of sales rank;
  • Misuse of multiple selling accounts;
  • Amazon Business Solutions Agreement violations;
  • Section 3 enforcement;
  • Repeated policy violations; and
  • Other conduct Amazon believes presents risk to customers or the marketplace.

The new FBM policy therefore should not be described as the end of Amazon account suspensions.

A more accurate description is that Amazon has introduced a more targeted enforcement mechanism for several seller-fulfilled performance metrics.

Why Is Amazon's 2026 Account Health Change Important?

The most important consequence is containment of risk.

Consider an Amazon seller with 500 active FBM listings. One high-volume ASIN experiences an unexpected inventory problem and begins generating cancellations.

Under an account-level enforcement model, deterioration caused by that product could potentially threaten the seller's entire Amazon business.

Under the new system, Amazon can temporarily deactivate the problem offer while leaving the seller's other active offers operating.

That means the economic consequences of certain performance failures may be more proportional to the source of the problem.

1. Sellers May Face Listing-Level Revenue Loss Instead of Account-Wide Loss

For diversified sellers, keeping unaffected listings active can preserve substantial revenue while the seller corrects the problem ASIN.

2. Root-Cause Analysis Becomes More ASIN-Specific

Because enforcement may occur at the offer level, sellers should analyze performance data at the SKU and ASIN level rather than relying exclusively on account-wide averages.

3. Account Health Monitoring Becomes Even More Important

Amazon's promise of a warning gives sellers an opportunity to act before deactivation. That opportunity has value only if Account Health notifications are reviewed promptly.

4. Operational Problems Can Be Isolated Earlier

A problem with one supplier, fulfillment location, SKU, carrier, or shipping template may become visible before it affects the rest of the catalog.

Does This Change Apply to FBA Sellers?

The August 2026 announcement specifically concerns Fulfilled by Merchant offers.

FBM sellers control important parts of order fulfillment themselves, including inventory availability, handling, shipment confirmation, and carrier selection. That makes metrics such as cancellation rate and late shipment rate particularly relevant to merchant-fulfilled orders.

Sellers using Fulfillment by Amazon, or FBA, can still encounter numerous other Account Health and policy issues, but this particular announcement concerns FBM offers.

What Should an Amazon Seller Do After Receiving an Account Health Warning?

A seller who receives one of these warnings should act quickly but carefully.

Step 1: Identify the Exact ASIN or Offer

Determine which listing generated the warning and confirm the affected orders.

Step 2: Determine the Metric at Issue

Identify whether Amazon is concerned about Cancellation Rate, Late Shipment Rate, Order Defect Rate, or On-Time Delivery Rate.

Step 3: Review the Underlying Transactions

Do not rely solely on the percentage displayed in Seller Central. Review the orders contributing to the metric.

Look for recurring patterns involving:

  • A particular SKU;
  • A particular warehouse;
  • A specific carrier;
  • An inaccurate handling-time setting;
  • Inventory synchronization problems;
  • Supplier delays;
  • Customer complaints; or
  • Software or order-management errors.

Step 4: Correct the Immediate Problem

Correct inventory quantities, adjust handling times, modify shipping templates, change carriers, address staffing problems, or take whatever operational measure is appropriate to the actual root cause.

Step 5: Preserve Evidence

Maintain records showing what happened and what was corrected.

Relevant evidence might include:

  • Carrier tracking records;
  • Warehouse records;
  • Inventory reports;
  • Supplier communications;
  • Order-management logs;
  • Invoices;
  • Customer communications; and
  • Screenshots of Seller Central notifications.

Step 6: Respond Precisely

If Amazon asks for an explanation or appeal, respond to the exact issue Amazon identified.

A common mistake in Amazon appeals is submitting a generic Plan of Action that contains promises but does not explain the actual root cause.

What If Amazon Deactivates the Listing or Seller Account Anyway?

The correct strategy depends upon whether Amazon deactivated:

  • One FBM offer;
  • Multiple offers;
  • An ASIN;
  • A selling privilege;
  • The entire seller account; or
  • The seller's disbursements.

If the enforcement action appears incorrect, the response may require evidence demonstrating that Amazon's metric or underlying conclusion is wrong.

If the performance problem actually occurred, the stronger strategy may involve identifying the root cause, documenting corrective action, and demonstrating preventive measures.

For complete guidance, see our Amazon Seller Suspension Appeals and Reinstatement Guide.

Does an Amazon Appeal Still Need a Plan of Action?

Not every Amazon enforcement action uses the same appeal process.

Amazon increasingly uses different workflows depending upon the policy involved. Some cases request documents or specific responses rather than the traditional three-part Plan of Action.

When a Plan of Action is appropriate, however, it generally should be concise, factual, evidence-based, and tailored to the reason Amazon took action.

A useful Amazon Plan of Action typically contains:

  • Root cause: what actually produced the violation;
  • Corrective actions: what the seller has already done; and
  • Preventive measures: concrete controls implemented to prevent recurrence.

Sellers should avoid submitting multiple speculative appeals, blaming Amazon without supporting evidence, or flooding Seller Support with inconsistent explanations. Contradictory submissions can make a difficult reinstatement matter even harder.

What Should High-Volume FBM Sellers Do Now?

High-volume sellers should treat the new policy as an opportunity to improve their Account Health monitoring procedures.

Recommended steps include:

  1. Review Account Health daily.
  2. Ensure Amazon warning emails reach monitored addresses.
  3. Track performance by SKU and ASIN where possible.
  4. Audit handling-time settings.
  5. Review inventory synchronization between Amazon and outside systems.
  6. Identify carriers associated with repeated delivery delays.
  7. Investigate A-to-z claims and chargebacks promptly.
  8. Maintain documentation supporting fulfillment performance.
  9. Develop an internal escalation procedure for Account Health warnings.
  10. Address warnings before Amazon removes an offer.

Frequently Asked Questions About Amazon's 2026 Account Health Changes

What changed with Amazon Account Health in August 2026?

Beginning August 31, 2026, Amazon announced that certain FBM offers creating Account Health risk may be temporarily deactivated individually rather than putting the seller's entire account at risk. The change applies to specified seller performance policies.

Will Amazon deactivate my whole account for one late-shipping problem?

Under Amazon's new approach for the identified FBM performance policies, Amazon says it can deactivate the affected offer while leaving other active listings and overall Account Health unaffected. This does not prevent account-level enforcement for other policies or circumstances.

Which Amazon performance metrics are covered by the new policy?

Amazon identified Cancellation Rate, Late Shipment Rate, Order Defect Rate, and On-Time Delivery Rate.

Does Amazon warn sellers before deactivating an FBM offer?

Amazon says sellers will receive a warning email before offer deactivation, including information about the problem and steps to resolve it.

Where can I find an Amazon offer that was deactivated?

Amazon instructs sellers to review the Account Health dashboard and look under Other Policy Violations for affected offers and reactivation instructions.

Does the new policy mean Amazon no longer suspends seller accounts?

No. Amazon can still deactivate entire accounts for numerous other violations, including intellectual property complaints, authenticity problems, review manipulation, related accounts, verification failures, restricted products, Section 3 violations, and other policy issues.

What is Amazon Order Defect Rate?

Order Defect Rate is a customer-service performance metric that can include negative feedback, A-to-z Guarantee claims, and credit card chargebacks. Amazon generally expects sellers to maintain ODR below 1%.

What should I do if Amazon warns me about an FBM offer?

Identify the affected offer and orders, determine the root cause, correct the operational problem immediately, preserve supporting evidence, and follow the instructions in Account Health before the warning progresses to offer deactivation.

Can I appeal an Amazon offer deactivation?

Amazon provides instructions through Account Health for resolving affected offers. The appropriate response depends upon whether the metric is inaccurate or whether an actual performance problem occurred and has been corrected.

Can an Amazon seller attorney help with an account deactivation?

An attorney experienced with Amazon seller matters can analyze the stated reason for enforcement, supporting evidence, prior appeals, Amazon policies, and potential legal issues to determine an appropriate reinstatement strategy. The appropriate approach depends upon the facts of each case.

Amazon Listing or Seller Account Deactivated?

AMZ Sellers Attorney® represents Amazon sellers facing account deactivation, listing removals, policy violations, intellectual property complaints, authenticity complaints, related-account allegations, and other marketplace enforcement actions.

Our team reviews the suspension notice, Account Health history, supporting documents, prior submissions, and underlying facts to develop an individualized strategy for reinstatement.

Request a Free Consultation

Bottom Line

Amazon's August 31, 2026 Account Health update is a meaningful development for FBM sellers.

For Cancellation Rate, Late Shipment Rate, Order Defect Rate, and On-Time Delivery Rate problems, Amazon has moved toward an offer-level enforcement model that can temporarily deactivate the problem offer while allowing other active listings to continue selling.

That is potentially good news for sellers, but it does not reduce the importance of Account Health compliance.

Instead, the change makes early detection even more valuable. Amazon says sellers will receive a warning before an affected offer is deactivated, creating an opportunity to diagnose and correct the underlying problem before sales are interrupted.

And because the change applies only to specified FBM performance policies, sellers should not assume that other Amazon violations will be treated the same way. Intellectual property, authenticity, related-account, review manipulation, verification, Section 3, and other serious violations can still result in account-wide enforcement.

If your Amazon seller account or listing has already been deactivated, review our Amazon suspension and appeal guide or request a consultation with AMZ Sellers Attorney®.

0 Comments

FTC Sues Amazon Over Hidden Ad Auction Surcharges: What Sellers Should Do Now

9/2/2026

0 Comments

 
FTC Sues Amazon Over Hidden Ad Auction Surcharges: What Sellers Should Do Now
Home › Amazon Seller Law News › FTC Amazon Ad Auction Lawsuit

FTC Sues Amazon Over Hidden Ad Auction Surcharges: What Sellers Should Do Now

The government's case will take years. Your claim has a clock on it, and the Business Solutions Agreement decides where you can bring it.

By Kenneth G. Eade, Founding Attorney, AMZ Sellers Attorney  |  Published September 2, 2026  |  8 min read

Short answer: On August 31, 2026, the Federal Trade Commission and 22 state attorneys general sued Amazon in the U.S. District Court for the Western District of Washington, alleging that Amazon secretly added an undisclosed surcharge to its advertising auctions beginning in 2019, converting what it marketed as a second-price auction into a first-price auction. The complaint covers more than one million brands and sellers, including over 500,000 small and medium-sized businesses. Sellers cannot join this lawsuit. Anyone who ran meaningful Sponsored Products spend since 2019 should export their historical advertising data now and have the arbitration path evaluated separately, because the Business Solutions Agreement's class action waiver forecloses riding along on anyone else's case.

Key Facts

Filed
August 31, 2026
Court
U.S. District Court, Western District of Washington
Plaintiffs
Federal Trade Commission plus 22 state attorneys general
Commission vote
2-0 authorizing staff to file
Ad formats at issue
Sponsored Products, Sponsored Brands, Display Ads
Conduct period
Beginning 2019, alleged to be ongoing
Advertisers affected
More than 1,000,000 brands and sellers
Alleged extraction
Tens of billions of dollars
Relief sought
Civil penalties, restitution, injunctive and other relief

What exactly does the FTC say Amazon did?

The mechanics matter, so it is worth being precise.

Amazon sells advertising placements against keyword searches through an auction. For years, Amazon told advertisers this was a generalized second-price auction, the accepted standard in digital advertising. In a second-price auction, the winner pays only what is needed to beat the next highest bid, typically described as one cent above it. That design has a purpose: because bidders know they will not be charged their full bid, they bid closer to what a placement is genuinely worth to them. They do not need to shade their bids downward to protect against overpaying.

The FTC alleges that in 2019 Amazon added an undisclosed floor to the auction, referred to internally as a "soft reserve price," and did not tell advertisers. According to the complaint, the practical result was that Sponsored Products advertisers were charged their own winning bid close to 80 percent of the time. That is a first-price auction wearing second-price clothing.

The complaint frames the harm this way: advertisers kept bidding as though they were in a second-price auction, because Amazon told them they were, while actually paying first-price outcomes. The FTC alleges Amazon understood this and relied on it, and further alleges that Amazon used what internal documents describe as an invented auction participant and a calculated proxy second price, which the complaint characterizes as functionally equivalent to shill bidding.

Share of the time Sponsored Products advertisers paid their own bid amount, as alleged in the FTC complaint
Year Alleged share paying own bid
2021 Approximately 30 to 40 percent
2022 Approximately 70 percent
2024 Approximately 80 percent

The complaint also alleges that Amazon increased the surcharges more aggressively on high-volume shopping days such as Prime Day and Black Friday, and ramped them up gradually in advance of those events to avoid detection.

Amazon has disputed the characterization, saying the FTC misrepresents how its auctions work and selected findings out of context. The company points to disclosures available inside its campaign management tools, states that inflation-adjusted average cost-per-click held flat, and says its auction systems delivered billions in savings to advertisers between 2021 and 2025. Amazon also notes the complaint identifies no shopper-level harm.

Why this matters more to sellers than a typical Amazon headline

Most regulatory news about Amazon is background noise for the average seller. This one is different for a specific reason: it goes to a line item that most sellers cannot avoid.

Advertising is not optional for the majority of private-label and brand-registered sellers. It is a fixed cost of visibility. If the allegations are accurate, the overcharge did not fall on a discretionary category of spend that a careful operator could have avoided. It fell on the one line item that a seller has to fund to stay in the search results at all, and it fell hardest during the quarters when volume was highest.

The second reason is that the alleged mechanism is invisible from the seller side. A seller reviewing a campaign report sees a cost-per-click. There is no field showing what the price would have been under an unmodified second-price auction. If the complaint's core allegation is correct, no amount of diligent account management would have revealed it.

The practical point: a seller who ran $200,000 in Sponsored Products spend annually since 2019 has roughly $1.4 million of exposure to whatever the overcharge rate turns out to be. Even a modest percentage produces a claim worth pursuing. That is arithmetic worth running before assuming this is someone else's problem.

Can sellers join the FTC lawsuit?

No, and this is the point where sellers most often go wrong.

The FTC action is a government enforcement proceeding. Private parties do not join it, do not intervene as plaintiffs, and do not get to shape the relief. There is also no private right of action under Section 5 of the FTC Act, so a seller cannot file its own version of this complaint under the same statute.

If the court orders restitution, the FTC may eventually administer a refund program. But a seller who waits for that outcome is accepting several things: that the case survives motion practice, that it is not settled on terms that limit individual recovery, that any fund is distributed on a formula the seller has no input into, and that the whole process runs its course before the seller's own limitations period expires. Those are four separate bets.

Where does a seller's own claim actually go?

Into individual arbitration, in most cases.

The Amazon Services Business Solutions Agreement contains a binding arbitration provision and a class action waiver. The March 4, 2026 update added a dedicated dispute resolution section, Section 20, addressing the arbitrator's authority while preserving the existing arbitration requirement and class waiver. Separately, Amazon reinstated mandatory arbitration and a class action waiver in its consumer-facing Conditions of Use effective August 14, 2026, after five years without them.

For a seller, the consequence is direct. You cannot wait for a private class action on advertising overcharges, because the class waiver is designed to prevent one from reaching you. Your claim is your own, brought individually, before the American Arbitration Association under the BSA's dispute resolution terms.

That is not the disadvantage it sounds like. Individual arbitration against Amazon over fee and charge disputes is a mature practice area with an established record. What it does mean is that the work has to be done account by account, and the seller's own data is the case.

What should sellers do now?

  1. Export historical advertising data immediately. Pull Sponsored Products, Sponsored Brands, and Display reports at keyword and placement level for every period back to 2019. Amazon retains many advertising reports only for limited windows. Data that is not exported may simply cease to be retrievable, and there is no mechanism to recover it later.
  2. Preserve the billing record separately. Monthly advertising invoices, payment records, and account-level spend summaries are a different data set from campaign reports and should be captured on their own. These establish the total dollars at issue.
  3. Capture bid configuration history. Bulk operations files showing what bids were set, and when, matter because the alleged harm is the gap between what the bidding strategy assumed and what was charged. Without the bid history, the gap is difficult to reconstruct.
  4. Preserve communications about auction mechanics. Any correspondence with an Amazon account manager, strategic account services representative, or advertising specialist discussing how the auction works or how to bid is potentially relevant. The complaint alleges Amazon gave misleading answers to advertisers who asked directly.
  5. Run the exposure calculation. Total advertising spend since 2019, broken out by year and by ad format, is the threshold number that determines whether an individual claim is worth pursuing. Do this before deciding anything else.
  6. Get the timing evaluated. Limitations periods apply and differ by legal theory, and the BSA contains its own contractual limitations language. Spend from the earliest years of the alleged conduct is the most likely to be time-barred. Waiting for the FTC case is the one strategy that guarantees the oldest and largest years fall away.

What happens next in the litigation

Expect motion practice first. Amazon has signaled it will contest the FTC's characterization of the auction mechanics, which sets up a dispute that is partly legal and substantially technical and economic. Cases of this profile do not resolve quickly.

This is also not Amazon's only front. The FTC's separate monopolization case, which centers on Amazon's treatment of third-party sellers, is now scheduled for a bench trial on March 29, 2027 before Judge John H. Chun in the same district. The two matters are distinct, but the advertising complaint's internal documents will be read closely by anyone litigating against Amazon on fee and charge theories, and the discovery record from one is unlikely to stay hermetically sealed from the broader picture.

For sellers, the practical horizon is simple. The government case will outlast several of your fiscal years. Your own data will not survive that long unless you take it out now.

Evaluate your advertising overcharge exposure

AMZ Sellers Attorney represents Amazon and marketplace sellers in AAA arbitration against Amazon over withheld funds, fee disputes, and charge overcharges under the Business Solutions Agreement. If you have run significant Sponsored Products spend since 2019, we can assess the size of your claim and the timing constraints that apply to it.

Request a case evaluation

Frequently Asked Questions

Can I join the FTC lawsuit against Amazon over advertising overcharges?

No. The FTC action is a government enforcement proceeding, and private parties cannot join it or intervene as plaintiffs. There is also no private right of action under Section 5 of the FTC Act. If the court orders restitution, the FTC may later establish a refund process, but sellers cannot control that timeline or its adequacy. A seller seeking its own recovery must pursue a separate claim, which under the Amazon Business Solutions Agreement means individual arbitration.

What is a soft reserve price in an Amazon ad auction?

According to the FTC complaint, a soft reserve price is an undisclosed pricing floor Amazon added to its advertising auctions beginning in 2019. It raised the minimum an advertiser had to pay to win a placement above the price a genuine second-price auction would have produced. The FTC alleges the effect was to convert a nominal second-price auction into a first-price auction without telling advertisers.

Which Amazon ad types does the FTC complaint cover?

The complaint addresses Sponsored Products ads, Sponsored Brands ads, and Display Ads sold against keyword search results on Amazon.com and the Amazon mobile app. Sponsored Products is the format with the most detailed allegations, including the specific percentages of the time advertisers paid their own bid amount.

What advertising records should Amazon sellers preserve right now?

Sellers should export Sponsored Products, Sponsored Brands, and Display campaign reports at the keyword and placement level, bulk operations files showing historical bid settings, monthly advertising invoices and payment records, and account-level spend summaries going back to 2019. Amazon retains many advertising reports for limited windows, and data that is not exported may become unavailable. Sellers should also preserve any correspondence with Amazon account managers about auction mechanics or bidding strategy.

Does the Amazon Business Solutions Agreement force sellers into arbitration for advertising claims?

Yes, in most circumstances. The Business Solutions Agreement contains a binding arbitration provision and a class action waiver, and the March 4, 2026 update added Section 20 addressing dispute resolution and the arbitrator's authority. A seller with an advertising overcharge claim generally must bring it individually before the American Arbitration Association rather than in court or as part of a class.

Is there a deadline for bringing an Amazon advertising overcharge claim?

Yes. Limitations periods apply and vary by the legal theory asserted, and the Business Solutions Agreement itself contains contractual limitations language that may shorten the window further. Because the alleged conduct dates to 2019, older spend may already fall outside some applicable periods. Sellers with significant advertising spend should have counsel evaluate timing promptly rather than waiting for the FTC case to resolve.

About the author

Kenneth Eade is the founding attorney of AMZ Sellers Attorney, a Beverly Hills e-commerce and intellectual property firm representing marketplace sellers worldwide. Admitted to the California Bar in 1980 (Bar No. 93774), and the Ninth Circuit, he founded the firm in 2017 following his own experience as a seven-figure Amazon FBA seller. The firm's APEX patent work has been cited by Bloomberg Law, and he was quoted by name in EBONY in August 2026 on AI-generated books and author provenance. The firm is Sermondo Top 10-listed for ecommerce law and for Amazon reinstatement and suspension appeal services.

AMZ Sellers Attorney · 9350 Wilshire Blvd Suite 203, Beverly Hills, CA 90212 · [email protected]

Primary source: FTC, States Sue Amazon Over Secret Ad Surcharge Scheme, Federal Trade Commission, August 31, 2026. The complaint is available through the FTC's case page.

This article is provided for general informational purposes and does not constitute legal advice. Reading it does not create an attorney-client relationship with AMZ Sellers Attorney or Kenneth G. Eade. Allegations described here are allegations only; Amazon disputes them and has not been found liable. Outcomes in arbitration and litigation depend on facts specific to each account. Consult qualified counsel regarding your own situation.

0 Comments

    RSS Feed

    Archives

    October 2026
    September 2026
    August 2026
    July 2026
    June 2026
    May 2026
    April 2026
    March 2026
    February 2026
    January 2026
    December 2025
    November 2025
    October 2025
    September 2025
    August 2025
    July 2025
    June 2025
    May 2025
    April 2025
    March 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    January 2023
    December 2022
    August 2022
    June 2022
    January 2022
    October 2021
    February 2021
    January 2021
    December 2020
    October 2020
    September 2020
    August 2020
    July 2020
    July 2019

    RSS Feed

Featured In
Web Retailer TechRound USA Today EcommerceBytes Moneywise Bloomberg Law Daily Journal AMZ Sellers Attorney recognition badge

AMZ Sellers Attorney®

9350 Wilshire Blvd., Suite 203
Beverly Hills, CA 90212
(Virtual office / mailing address)

Kenneth Eade, Esq. (licensed CA)
Michael S. Brandt, Esq. (licensed WA, CA, USPTO)

[email protected]

Call Us

  • US: +1 888 806 2440
  • UK: +44 20 3608 1613
  • AU: +61 2 7908 2785
  • FR: +33 4 85 88 04 30
  • Asia: +852 5803 6406

Languages Spoken

中文 — 我们讲中文
نتحدث العربية
Türkçe · Français · Русский
Español · Deutsch · English

Quick Links

  • Free Consultation
  • All Services
  • IP Law Services
  • TRO & Arbitration
  • Reviews & Results
  • About the Firm
  • Blog
  • Site Map

Payments

We accept all major credit cards and ACH transfers. Purchase currency is US Dollar (USD). Payments made through our site are secure.

Terms & Conditions | Privacy Policy | Refund Policy

Copyright © 2026 AMZ Sellers Attorney® All Rights Reserved.

Attorney Advertising. This website is for general informational purposes and does not constitute legal advice. Past results do not guarantee future outcomes. No attorney-client relationship is formed until a written engagement is signed.


Copyright © 2026 AMZ Sellers Attorney ® All Rights Reserved. Privacy Policy
Photos from thedailyenglishshow, Tony Webster, EpicTop10.com, willbuckner, Ben Baligad, osseous, andreboeni, EpicTop10.com, Tony Webster, wuestenigel (CC BY 2.0), wuestenigel (CC BY 2.0), Tony Webster, ThoroughlyReviewed, wuestenigel
  • Home
  • Free Consult
  • AMZ Appeals
    • Amazon Seller Appeals >
      • Amazon Section 3 Appeal | Reinstate Deactivated Seller Account
      • Amazon Unsuitable Inventory Investigation Appeals
      • Amazon Appeal Inauthentic Item Suspension
      • Amazon Restricted Product Appeals
      • Amazon Related Account Appeals
      • Appeal Amazon Verification Suspension
      • Amazon Review Manipulation Suspension Appeals
      • Amazon Safety Complaint Appeals
      • Amazon Appeal ODR Suspensions
      • Amazon Appeal OTDR Suspensions
      • Amazon Drop Shipping Policy Appeals
      • FBA Reimbursement Abuse Suspensions| Appeals
      • Amazon Appeal VTR Suspensions
      • Amazon Sales Velocity Suspension Appeals
      • Amazon Sales Rank Manipulation Appeals
      • Amazon Price Gouging/Fair Pricing Suspensions Appeals
      • Amazon Variation and PDP Abuse Appeals
      • Amazon Forged or Manipulated Documentation Appeals
      • Amazon Account Hacked Suspension Appeal
      • Amazon Funds Appeal
    • Amazon Relay Suspension Appeal: Get Reinstated Fast >
      • Amazon Relay suspension reasons
      • Amazon Relay Plan of Action
      • Amazon Relay COI Problems | Insurance Suspension
    • Amazon KDP Appeal Service
    • Amazon Vendor Account Suspension Appeals
    • Merch by Amazon Termination Appeals
    • Amazon Mechanical Turk Suspension Appeals
    • LegalTrack™
    • Amazon Account Suspended Appeal Info >
      • Why Amazon Keeps Rejecting Your Appeal (Fix It Now)
      • Should You Admit Fault in an Amazon Appeal?
      • Amazon Appeal Timeline
      • Amazon Appeal No Response? What Sellers Should Do
      • Amazon Appeal Escalation After Repeated Denials
      • Which service is best for fast Amazon account reinstatement?
      • How to Write an Amazon Plan of Action That Gets Results
      • Can Amazon Keep Your Money After Suspension?
      • How to Escalate to Amazon Legal After Suspension
      • 2026 Suspension Risk Scanner
      • Why Amazon Suspended My Account | Seller Suspension Reasons
      • Amazon Appeal Denied? What to Do Next
  • Other Appeals
    • Best Walmart Appeal Lawyers | Suspension, Funds & Brand Portal
    • Best eBay Appeal Lawyers | MC011, VeRO & Account Reinstatement
    • Best Etsy Appeal Lawyers | Shop Suspension, IP & Reserves >
      • Etsy Frequently Asked Questions
    • Best TikTok Seller Suspension Appeal Service and Lawyers >
      • TikTok Shop Suspended? How to Appeal & Get Reinstated >
        • TikTok Shop Appeal Denied? What to Do Next
        • TikTok Shop Holding My Funds? Payout Hold Help for Sellers
        • TikTok Shop IP Violation Appeal | Trademark, Copyright & Counterfeit Claims
        • TikTok Shop KYC Verification Appeal | Fix Seller Identity Issues
    • X (Twitter) Account Suspension Appeals
    • EPayment and PayPal Suspension Appeals
    • Temu Seller Suspension Appeal
    • Target Suspension Appeal
  • TRO & Arbitration
    • Amazon TRO Defense >
      • What Is an Amazon TRO? Schedule A Lawsuit Defense >
        • Schedule A Lawsuit Against Amazon Sellers Explained
        • How to Remove an Amazon TRO Freeze on Seller Funds
        • How Long Does an Amazon TRO Last? Seller Timeline
        • Can You Fight a Schedule A Lawsuit? Amazon Seller Defense
    • Amazon Arbitration & Frozen Funds >
      • Amazon Funds Withheld? How to Release Your Money
      • When to File Amazon Arbitration (Seller Decision Guide) >
        • What Is Amazon Arbitration? Seller Guide to AAA Disputes
        • How Long Does Amazon Arbitration Take? Timeline Explained
        • Amazon Arbitration Costs: Fees, Lawyer Costs & ROI
        • Can You Win Amazon Arbitration? Success Factors Explained
        • Amazon BSA Legal Rights: What Sellers Can Enforce
        • Is Amazon Allowed to Withhold Funds? Laws & Seller Rights
        • How to Force Amazon to Pay You (Recover Frozen Funds Fast)
        • Amazon Arbitration vs Appeal: Which Should Sellers Use?
    • Proposition 65 Lawyers
  • IP Law Services
    • E-Commerce Lawyers
    • Patent Lawyer Services >
      • Intellectual Property Litigation
      • Best Amazon Patent Reexamination Lawyers
      • Best Amazon APEX Attorneys | Patent Evaluation Express >
        • Amazon Patent Infringement Suspension & APEX Defense
        • Can You Appeal an APEX Decision?
        • Amazon APEX Timeline
        • Amazon APEX Complaint: Seller Defense & Patent Owner Strategy
        • How to Respond to an Amazon Patent Complaint
      • Patent and IP Coverage Checker for E Commerce Sellers
    • Trademark Lawyers & Brand Registry >
      • Amazon Brand Registry Lawyers >
        • Amazon IP Accelerator Alternative 2026 | Lower Fees, Same Access
        • Brand Registry & IP Readiness Checker
    • IP Complaint Defense
    • Copyright Lawyers for Amazon & E-Commerce Brands >
      • DMCA Experts | DMCA Takedown and Counter Notices
    • Trademark Trial and Appeal Board Attorneys >
      • Trademark Cancellation Attorneys Online
      • Trademark Opposition Lawyer | TTAB Opposition Defense & Filing
      • USPTO Letter of Protest Attorney | Flat Fee $1,750
      • Trademark Expungement Attorneys Online | AMZ Sellers Attorney®
      • Intellectual Property Litigation for Amazon & E-Commerce Sellers
    • Hijacker Removal Service with C&D
  • Our Firm
    • Client Reviews & Case Results
    • E Commerce News Blog
    • Why Choose Us?
  • Amazon Suspension Prevention with Free Appeals
  • Amazon Seller Tools API & Embeddable Widgets for Partners
  • How to Open Multiple Amazon Seller Accounts
  • Amazon Listing (ASIN) Removal? Reinstate Listing
  • Amazon Sabotage Survival Guide: Stop Hijackers, Fake Complaints
  • Firms that handle Amazon account suspensions for brand sellers
  • E Commerce Seller Law White Papers: IP Litigation, DMCA, AI Copyright & TRO Defense
    • The New Amazon APEX Playbook for Patent Owners: Enforcement, Licensing, and Litigation Risk in 2026
    • 2026 Brand Registry Playbook: Advanced Amazon Enforcement Strategies
    • Design Patent Defense on Amazon: Protecting Product Aesthetics in 2026
    • Navigating the New Frontier: 2026 Intellectual Property Litigation Trends
    • Why Amazon and Walmart Brand Registry Matter in 2026
    • Schedule A TRO Defense: Seller Guide to Mass IP Litigation and Frozen Funds
    • AI-Generated Content and the DMCA: Copyright Rules for Amazon Sellers
    • Global Trademark Hijacking: Recovering Your Brand from International Squatters
  • Аккаунт Amazon заблокирован? Апелляции, Раздел 3, &
  • Amazon Hesabınız Askıya mı Alındı? İtirazlar, Bölüm 3, Donmuş Fonlar, Fikri Mülkiyet Savunması
  • ¿Cuenta Amazon Suspendida? Abogado Vendedores
  • Amazon-Konto gesperrt? Anwalt für Amazon-Verkäufer
  • 亚马逊账户被封?卖家律师24/7服务
  • Compte Amazon suspendu ? Avocat vendeurs
  • حساب أمازون موقوف؟ محامي البائعين 24/7 | AMZ®
  • Terms and Conditions
    • Privacy policy
    • Refund Policy
  • Full-Service Amazon Suspension Management Agency | AMZ Sellers Attorney®
  • Amazon Appeal Lawyer for Account and ASIN Reinstatement
  • Amazon Seller Lawyer for account and ASIN Reinstatement
  • Best Etsy Appeal Lawyers | Shop Suspension, IP & Reserves