Chinese companies 'banned' from Amazon sue the company

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Amazon applies strict measures against fake reviews that are published on the platform. The company prohibits companies that sell through its web portal from asking for positive opinions in exchange for giving away a product or sending a gift voucher. A policy that resulted, during this year, in the withdrawal of more than 600 Chinese firms spread over 3,000 seller accounts. Now, a group of these affected companies is suing Amazon for making abusive decisions.

The class action lawsuit is formed by firms such as Sopownic, Slaouwo, Deyixun, Cstech, Recoo Direct, Angelbliss and Tudi. In particular, they accuse Jeff Bezos’s company of withholding its profits after the ban on selling products on Amazon due to breach of seller policy.

These companies used to sell accessories like headphones, chargers or other gadgets for the smartphone. In many cases, they asked the user to leave an opinion in exchange for a benefit. They do not deny having breached the sellers policy when offering your customers the possibility to offer a free product, a refund or a gift card for those positive reviews. They claim, however, that the withholding of funds is illegal and improper.

Amazon is clear with its policy, which also applies to fake reviews

Felixtz

But, What if these gains have been made, in part, thanks to false positive reviews? Amazon, at the moment, has not offered any response in relation to the class action lawsuit. However, and as you comment The Verge , Amazon’s trade solutions agreement makes clear that can withhold any payment if they prove that there is a breach of the conditions.

If we determine that your actions or actions may lead to returns, refunds, claims, disputes, violations of our conditions or policies or other risks to Amazon or third parties, we may, in our sole discretion, withhold any payment to you for as long as we determine that related risks to Amazon or third parties persist.

The Chinese companies that have imposed the lawsuit defend themselves by assuring that is Amazon itself who managed the logistics of their products . Therefore, they should be aware that gift cards were being offered to those users who shared positive reviews on the product page.

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