A group of Chinese merchants started to sue Amazon after thousands of shops were blown away for buying fake reviews

Tram Ho

SCMP reported that a group of Chinese merchants filed a lawsuit against the US e-commerce giant Amazon, demanding the return of their money. This move comes after this website accused many Chinese shops of bribing customers, buying fake reviews (product reviews). Amazon later closed the accounts of the aforementioned shops as part of a massive crackdown on violations of the company’s terms.

Accordingly, seven cross-border e-commerce companies, operating under the names Sopownic, Slaouwo, Deyixun, Cstech, Recoo, Angelbliss and Tudi on Amazon, have filed a class-action lawsuit to ” seek to recover the stolen funds.” Amazon unlawful and improper withholding ,” according to a document filed with California’s Northern District Court.

Amazon withheld a total of about US$568,910 from these seven companies after closing their accounts between December of last year and March of this year.

Amazon has been targeting sellers who have been found to be engaging in suspicious activities, such as offering gift cards to customers willing to leave a positive review of their purchase – a fact. popular economy in China goes against the policy of the Amazon platform. The campaign has affected tens of thousands of merchants in the “made in China, sold on Amazon” community, trade group the Shenzhen Cross-Border E-Commerce Association estimated in July.

Nhóm nhà buôn Trung Quốc bắt tay kiện Amazon sau khi hàng nghìn shop bị cho bay màu vì mua review giả mạo - Ảnh 1.

While the seven companies did not deny or acknowledge Amazon’s allegations, they argued that the platform should take measures to prevent any violations of their rules. The reason is because Amazon is responsible for packaging and shipping these companies’ products to buyers through the Fulfilment by Amazon program.

The plaintiffs called Amazon’s zero-tolerance policy for rewarded reviews or gifts “hypocritical,” and said they decided to file the lawsuit to “prevent any misappropriation. and misused the money of thousands of Amazon sellers.”

Amazon has not yet responded to this matter.

Amazon previously said it closed about 3,000 accounts of online stores belonging to about 600 Chinese brands during the recent crackdown. Cindy Tai, Amazon’s vice president of Global Sales for Asia, denied that the company’s campaign was aimed solely at merchants in China or any other country. In fact, according to Marketplace Pulse, China-based retailers make up about half of the top sellers on Amazon, up from 13% in 2016.

Chinese sellers considered their legal options and worked to minimize damages following the aforementioned clampdown. And it looks like some people have chosen to file a lawsuit against Amazon.

On August 14, an Amazon spokesperson in the US said in an email: ” We do not accept fake or paid reviews from any seller. We always prioritize protecting the platform. platform from fraud and abuse problems, and take appropriate actions to hold the bad guys accountable .”

For years, counterfeit goods have been proliferating on Amazon’s website, and Amazon’s terms of service allow Amazon to avoid liability when its customers complain about products on the market that are allegedly inferior. quality or defective. However, letting the regulations be too lax causes their reputation to be greatly damaged. Now the company seems to be taking drastic action to fix that.

Source: SCMP

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