AMAZON SELLERS ATTORNEY
  • Submit a case
  • Amazon Sellers Lawyer Services
    • Amazon Appeals >
      • Inauthentic Item Suspensions
      • Inauthentic ODR Suspensions
      • Amazon Related Account Suspensions
      • Amazon Verification Suspensions
      • KDP, ACX and Amazon by Merch Appeals
      • Forged or Manipulated Documentation
      • Reinstating ASIN
      • Fraud or Illegal Activity
      • Amazon Account Hacked?
      • How to Open a Second Amazon Seller Account
    • Trademark Registration and Amazon Brand Registry Support
    • Temporary Restraining Orders (TRO)
    • Amazon Arbitration
    • Intellectual Property (IP) Law for Amazon Sellers
    • Listing Hijackers
    • DMCA Takedown Notices 2023
    • Defending Buyer Complaints
  • About
  • Amazon Sellers Lawyer Reviews
  • Amazon Sellers Blog 2023
  • Prevent Suspension with Free Appeals
  • Ebay, Walmart, Twitter Suspensions
  • Terms and Conditions
    • Privacy policy
    • Refund Policy

Amazon Sellers Blog

Want to Sue Amazon? Consider this First

7/23/2020

 
Many third-party sellers who have been suspended from selling on Amazon.com’s ecommerce platform come to me and ask this question, “How do I sue Amazon (AMZN)?” The second question is usually “Can I get damages for loss of profits and punitive damages?”
​
The answer to both of these questions can be found in Amazon’s Business Solutions Agreement. When you fill out an application to become a third-party seller on Amazon, you adhere to the terms of this agreement, one of which limits you, in the United States at least, to arbitration as a remedy. This means you cannot sue Amazon in a court of law.

​Your remedy is to demand an arbitration before an arbitrator of the American Arbitration Association (AAA).
Building with Columns
Wooden gavel

Amazon arbitration

​AAA operates like a “private court,” where an attorney or judge is appointed as an arbitrator to decide your case. It functions much like a real court, except that, since the situs of the arbitration against Amazon is King County, Washington (also by agreement) the agreement also permits the hearing, or trial, to be conducted by telephone. ​
​
Depending on the amount in controversy, the cost of an arbitration, which includes AAA filing fees, arbitrator hearing fees, and your own attorney’s fees, can be anywhere from $7500 to $10,000, and, in some cases, even more. The arbitration is typically set within a few months of the arbitrator’s appointment which means, in a relatively short time compared to a lawsuit, which can take years, your controversy will be decided.

What kind of relief can you expect to receive from Amazon in an arbitration?

This is also something determined by the agreement. Some third-party sellers on Amazon feel they have been genuinely wronged, and their account should be reinstated.
​However, Amazon’s business solutions agreement has been adjudicated by Washington State Courts to be an “at-will” contract, which means that, if Amazon wants to terminate the contract with a seller, it can do so at any time, for any reason, or no reason at all.

​But what about Amazon’s internal appeal system? Doesn’t that mean they have to determine your appeal in good faith? Again, Washington courts disagree and have failed to apply the doctrine of good faith and fair dealing to the at-will contract in these cases.
Lady Justice
​What about losses for the time your store was down? Again, the business solutions agreement has a clause that provides that Amazon will not be liable for any loss of profit, revenue, business or data or punitive or consequential damages arising out of or relating to the agreement. And, again, Washington courts have held such agreements to be enforceable, although not specifically in the case of Amazon.
Documents to sue Amazon

So why even sue Amazon at all?

Many clients sue for outstanding sales proceeds which, in certain cases, Amazon claims the right to withhold permanently, which is also in the business solutions agreement. However, this time, the law is not on their side.

Amazon says that it needs to hold proceeds indefinitely, for example, in cases where buyers seek refunds or could sue Amazon for counterfeit products. Case law distinctly holds that, as between Amazon and the third-party seller, the seller, and not Amazon, is the seller of the goods, which means that they cannot be held liable by companies claiming the seller sold counterfeits.

​Recent changes in the Copyright Act (the DMCA) provides immunity for Amazon with regard to copyright claims, and equity demands that Amazon cannot be the holder of the seller’s funds forever. It holds them as a constructive trustee, with the duty to turn over the funds to the seller, unless there is a court order compelling them to do otherwise. Sellers also arbitrate for lost or damaged inventory claims that have been denied by Amazon.
So, it is possible to sue Amazon, but, as with everything, prevention is always better than the cure. Although Amazon’s systems are fallible, and may result in unjust discipline against some third-party sellers, a good compliance program to educate third-party sellers and their employees on Amazon’s selling policies, and to put systems into practice to ensure compliance with those policies; whether it be sourcing, listing, packaging, order fulfillment, or shipping, can keep you out of court.

Win Against Amazon

Schedule a consultation with our experienced attorneys!
get a free consultation

Comments are closed.

    Archives

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

    RSS Feed

CONTACT DETAILS:

Amazon Sellers Attorney, Ltd.
9350 Wilshire Blvd. suite 203
Beverly Hills, CA  90212
US: +1 888 806 2440​
AU: +61 2 7908 2785
FR: +33485880430
UK: +44 20 3608 1613
Asia: +852 5803 6406
نتحدث العربية ​
Türkçe konuşuyoruz
Nous parlons français 🇫🇷
Мы говорим по русски 🇷🇺
Se habla español​ 🇪🇸
我們說中文​ 🇨🇳
SUBMIT YOUR CASE

SERVICES:

Amazon Appeals
​Inauthentic Item Suspensions
Multiple/ Related Account Suspensions
​Amazon Verification Suspensions
Forged or Manipulated Documentation
Defending Buyer Complaints
Plan to Prevent Suspension
Intellectual Property (IP) Law
Reinstating ASIN
Fraud or Illegal Activity
Hacked Account
Listing Hijackers
DMCA Lawyers
Amazon Arbitration

PAYMENTS:

We accept payments from all major credit cards and also by ACH transfer through Stripe. Our purchase currency is US Dollar (USD). Payments made through our site are secure.  ​
Payment Options
See our reviews on Picture

AS REPORTED IN:

Picture
Picture
Picture
Picture
Copyright © 2021 AMZ Sellers Attorney ® All Rights Reserved. Privacy Policy
Photos used under Creative Commons from thedailyenglishshow, Tony Webster, EpicTop10.com, willbuckner, Ben Baligad, osseous, andreboeni, EpicTop10.com, Tony Webster, wuestenigel, Tony Webster
  • Submit a case
  • Amazon Sellers Lawyer Services
    • Amazon Appeals >
      • Inauthentic Item Suspensions
      • Inauthentic ODR Suspensions
      • Amazon Related Account Suspensions
      • Amazon Verification Suspensions
      • KDP, ACX and Amazon by Merch Appeals
      • Forged or Manipulated Documentation
      • Reinstating ASIN
      • Fraud or Illegal Activity
      • Amazon Account Hacked?
      • How to Open a Second Amazon Seller Account
    • Trademark Registration and Amazon Brand Registry Support
    • Temporary Restraining Orders (TRO)
    • Amazon Arbitration
    • Intellectual Property (IP) Law for Amazon Sellers
    • Listing Hijackers
    • DMCA Takedown Notices 2023
    • Defending Buyer Complaints
  • About
  • Amazon Sellers Lawyer Reviews
  • Amazon Sellers Blog 2023
  • Prevent Suspension with Free Appeals
  • Ebay, Walmart, Twitter Suspensions
  • Terms and Conditions
    • Privacy policy
    • Refund Policy