Many Chinese companies have filed a class action lawsuit against Amazon. These companies were banned from the Amazon marketplace for violating the site’s terms of use. As for the complaining companies, the problem arises because Amazon has withheld their reported revenue since the exit.
Amazon has had regular issues with third-party vendors for years. While third-party sellers do not hesitate to buy fake reviews from specialized companies to increase their visibility on Amazon, fake reviews are the main misfortune of the e-commerce site. Only the American company, which finds it difficult to fight this phenomenon, at such a point considers that it is not responsible for the armada of false comments on its site.
Of course, it is good to get good reviews for all reviews (no matter how false). For example some third party vendors prefer Offer gift cards to customers who post positive reviews. As you might expect, this method violates Amazon’s Terms of Service. And in 2021, Amazon was hit hard by the ban 3000 seller accounts (Offers over 600 Chinese brands) used for this type of practice.
Prohibited companies flock to Amazon
Precisely, our colleagues at The Verge tell us that this Thursday, September 30, 2021 several Chinese companies filed a class action complaint against Amazon. They are precisely among the companies banned during the year. To use fee reviews.
Although they do not deny that they violated Amazon’s terms of service, They blame the U.S. company for withholding the bulk of their revenue announced in 2021. “We seek to recover funds that were illegally and improperly blocked by Amazon, and we are filing a class action to end all other scams and financial malpractices that are legally and legally indebted to thousands of Amazon sellers and merchants. Mention the complainants.
According to these companies, Amazon currently holds between several hundred (for most ordinary sellers) and several hundred thousand dollars. Since 2016, Amazon has banned the use of “encouraging reviews” and is adamant about it. Based on the application of the FBA Program (a program that allows third-party companies to send and deliver their products to Amazon Infrastructure), the rules are clear: Amazon has the full option to determine whether or not to permanently suspend funding if a company violates its policies.. What does this complaint lead to? The future will tell.
Source: On the edge
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