Amazon Sued by Chinese Companies for Banning ‘Paid Reviews’ Claiming E-Commerce Giant Withholds Revenue


(Photo: Image from Unsplash website) Amazon is sued by Chinese companies for banning ‘paid reviews’ claiming e-commerce giant is withholding revenue

Amazon is now being sued by a number of Chinese companies after the e-commerce giant decided to ban “paid reviews.” Companies are now claiming that Amazon is withholding profits.

Amazon sued by several Chinese companies

According to The Verge article, several Chinese companies are filing a class action lawsuit directly against Amazon. The complaint is that Amazon is banning them from the entire Amazon marketplace due to the use of certainly paid reviews.

This was according to a brand new complaint filed on September 13, 2021. In 2020, Amazon decided to crack down on certain companies that sought paid reviews on its giant platform. Amazon is also investigating ticketless practices using palm-scanning technology.

Ban of 600 Chinese brands on more than 3,000 seller accounts

Amazon would have claimed to have definitively banned 600 Chinese brands spread over 3,000 seller accounts. The companies allegedly listed in the complaints were companies called Slaouwo, Sopownic, Deyixun, Recoo Direct, Cstech, Angelbliss and Tudi.

The companies have reportedly sought to recover funds which are now illegally and improperly withheld by Amazon. The companies are now filing the class action lawsuit to stop any possible future embezzlement as well as the misuse of funds that are still legally and rightfully owed to the thousands of Amazon sellers and other merchants.

Strict Amazon policy prohibiting “reasoned reviews”

Amazon now has a strict no-incentive reviews policy, which was instituted in 2016. The companies themselves do not deny that they violated Amazon’s policy. Their problem, at the moment, is that Amazon is still withholding “several hundred dollars” up to thousands of dollars from the profits claimed by companies.

The official Amazon service enterprise solution agreement, which would cover FBA or FBA businesses as well as operating Chinese companies, is pretty clear that Amazon always reserves “in its sole discretion” when deciding to Whether or not to permanently withhold funds in the event of a breach. in company policies.

Amazon Fulfillment by Amazon Agreement

The counter-argument reported by Amazon is that the company is in charge of the distribution under an FBA agreement. This means he should have known that companies were offering gift cards to customers who decided to leave positive reviews.

The Verge has reportedly requested a comment from Amazon and is still awaiting a response. It has been noted that trying to enforce its policies is actually a good thing for Amazon. For now, Amazon is stepping up its vaccination efforts by donating $ 100,000 and free cars.

Read also: Credibility of former Theranos lab director called into question by Elizabeth Homes

The reality of selling on different platforms

It was also stated that just because he stayed more relaxed before doingIt doesn’t really mean that he loses the right to decide to be strict. At the moment, it is quite easy to sympathize with these companies.

Their experiences, however, are also the reality of building a certain business on a platform that the business itself does not have. This means that at any time the mat can be pulled out “from under you”.

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This article is the property of Tech Times

Written by Urian B.

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