In the course of stricter enforcement of its own terms of use, Amazon says it has banned more than 600 Chinese brands from its platform in recent months. Some of the companies behind these brands are now suing Amazon as the group withholds sales generated.
Rewards for product reviews
Many of the online group’s customers have noticed a significant shrinkage in the range of products on offer in the marketplace in recent months. Amazon itself has confirmed it has permanently excluded more than 600 Chinese brands from its offering for failing to comply with its terms of service. Specifically, this involves rewards for positive reviews as well as gifts in exchange for deleting bad reviews. Popular brands such as Aukey and RavPower are also affected by the suspensions.
Some of the affected companies have now filed a class action lawsuit against the US company, with which they want to achieve the payout of retained sales. They themselves openly admit to having violated the terms of use, but point out that this was done with Amazon’s knowledge: as an FBA seller, Amazon itself had delivered the products of the affected companies and was thus necessarily informed about the business practices.
Retained sales
The affected companies therefore find the withholding of sales unreasonable, although they have agreed to such a punitive measure with the conclusion of the contract with Amazon. Specifically, it is partly about several hundred thousand US dollars that have not been distributed to the companies. Amazon itself has not yet publicly commented on the lawsuit filed, so it is unclear how the company will react.
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