Chinese Companies Banned From Amazon For Fake Reviews Respond: They File Class Action Lawsuit Against Amazon
In recent weeks, Amazon decided to ban hundreds of Chinese brands from its online platform. The reason? Evidence of fake reviews and methods to get them. Something that Amazon prohibits in its terms and conditions of use. Now, it is not something that has sat well with the brands, so much that they have presented a class action lawsuit against Amazon for being kicked out.
According to a class action lawsuit filed on Sept. 13, brands seek a recovery of funds that Amazon is illegally and improperly withholding. Likewise, with the lawsuit they seek to stop any other future embezzlement.
What funds is Amazon holding? By the agreement that is established between Amazon and the brands that sell their products on the platform, Amazon reserves the right to withhold funds permanently if a company violates its policies. The companies do not deny that they violated Amazon policy, but say that Amazon, being in charge of distribution, should have been aware of the practice. In other words: They acknowledge that they broke the rules, but as Amazon is the intermediary, they say they should have known.
Let’s remember that brands had ways to incentivize users to leave positive reviews. These reviews, being not genuine, for Amazon are false reviews and consequently lie to other users when it comes to influence the purchase decision.
For years Amazon has indicated in its terms that this type of practice cannot be carried out to obtain false reviews. While they have removed these types of reviews in the past, they had never been so serious as in the last few months. Especially since a database was leaked showing the involvement of thousands of people in this scheme.
One of the first Chinese brands to be kicked out of Amazon was Aukey, although other accessory brands also fell after. Finally, on September 20, it was revealed that Amazon removed more than 600 Chinese brands from the store.
If a conclusion can be drawn from this beyond not breaking the rules, it is that relying on an intermediary has its consequences. Many of these brands have been practically built on Amazon, this means that the moment Amazon decides to change something, it directly affects the brand in question.
Via | The Verge