A few days ago, news showed that several Chinese sellers have filed a class action lawsuit against Amazon , accusing them of banning their accounts and detaining funds on the grounds of cracking down on positive reviews. It is reported that the companies that have filed the lawsuit include Soponic, Slaouwo, Deyixun, Cstech, Recoo Direct, Angelbliss and Tudi, etc. These Chinese sellers hope to seek "recovery of funds improperly withheld by Amazon in an illegal manner" and go through a class action." Prevent any further misappropriation and abuse of legal and legitimate funds belonging to thousands of Amazon sellers and merchants". For this news, Amazon has not yet responded.
In fact, as early as 2016, Amazon has formulated strict regulations for “rewarding praise”. Last year, Amazon launched a round of crackdowns on companies suspected of cashback on the platform, permanently banning about 3,000 seller accounts. In this lawsuit, the plaintiff seller did not deny that it violated Amazon’s policies, but believed that the “hundreds to hundreds of thousands of dollars” withheld by Amazon belonged to the seller’s income, and Amazon’s “Service Business Solution Agreement” stated that, If the seller violates the relevant regulations, Amazon will retain the "only discretion" to decide whether to permanently withhold the seller's funds.
Previously, according to Dai Hongfei, Amazon’s global vice president, in the past five months, Amazon has banned the sales rights of about 600 Chinese brands, including about 3,000 seller accounts of these brands, and these accounts have had multiple accounts. Repeated abusive reviews, Amazon has given multiple warnings in the past. Regarding issues such as how to unblock accounts and return frozen funds for blocked sellers, Amazon has pointed out that the frozen funds are mainly used to deal with potential customer return and refund requirements. Normally, relevant sellers can appeal within 90 days. Ways to retrieve the frozen funds.
For negotiations with the seller,Dai Lingfei once said, “If sellers can prove that Amazon’s judgment is wrong, or that their violations are only temporary or unintentional, Amazon hopes to see them provide some solutions to avoid violations in the future, and then they will be restored. Account; but if the seller’s account appeal is unsuccessful, or the seller does not appeal, then the funds in this account will be temporarily frozen for a period of 90 days, and these funds will be used to pay for customer returns and refunds , Compensation and other expenses and other unpaid expenses of the seller."
