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Amazon Business Solutions Agreement Allowing Confiscation of Seller Funds Again Stricken as Unenforceable in Three Cases Against Chinese Sellers

Three Arbitrators rule section 2 of Amazonís Business Solutions Agreement, allowing Amazon to indefinitely withhold funds in its discretion in cases of alleged review manipulation is not enforceable under the law, and that third-party sellers were entitled to disbursement of sales proceeds notwithstanding alleged breaches of Amazonís Business Solutions Agreement.


Beverly Hills, California – WEBWIRE

ďThis case is a landmark achievement, as it clearly distinguishes other cases in which the arbitrators ruled erroneously in favor of Amazon,Ē said Kenneth Eade, co-counsel.† ďI commend my co-counsel Julie Guo for an excellent job on this case.Ē

Amazon Sellers Attorney, a lawyer-supervised suspension appeal service, announced today that three arbitrators sitting in three different states in arbitrations against Amazon.com (AMZN) have stricken section 2 of Amazonís Business Solutions Agreement, which allows Amazon to hold funds indefinitely if they suspect the third-party seller sold inauthentic products, holding that it is not enforceable and ordered Amazon to release the third-party sellerís funds.

In an arbitration against Amazon.com, an ex-judge sitting as an arbitrator in Florida ruled that section 2 of the BSA imposed a penalty and was an unenforceable liquidated damages clause. The judge also ruled that failure to submit to an in-person video verification interview by Amazon was not a condition to release of the sellerís sales proceeds being held by Amazon, and that the seller was entitled to its sales proceeds notwithstanding the fact that it breached the BSA by committing review manipulation, which is against Amazonís policies. The judge awarded the seller almost half a milion dollars in damages.

ďThis case is a landmark achievement, as it clearly distinguishes other cases in which arbitrators ruled erroneously in favor of Amazon,Ē said Kenneth Eade, co-counsel. ďI commend my co-counsel Julie Guo for an excellent job on this case.Ē

On March 15, 2023, in another case against Amazon by a Chinese seller, an arbitrator sitting in Tennessee ruled that section 2 of the BSA was an unenforceable penalty clause in another reivew manipulation case. The arbitrator also struck the clause as unconscionable, and held that the seller was entitled to its proceeds notwithstanding its breach of the BSA. The award was for over $340,000 with interest from the date of account deactivation.

In the largest of the three cases, an arbitrator in Texas ordered Amazon to disburse almost $800,000 to a Chinese seller, ruling that Amazon breached its duties under the BSA to distribute the sellerís proceeds, that the verification of the sellerís identity in an in-person video verification procedure was not a condition to the release of those funds, and that section 2 of the BSA was not a valid liquidated damages clause.

About Amazon Sellers Attorney

Amazon Sellers Attorney is an Amazon appeal service, supervised by lawyers, which serves third-party sellers worldwide with issues of suspension of their Amazon seller accounts and deactivation of listings through its website at www.amazonsellers.attorney. The firm provides 24-hour service to its customers by live chat, telephone, and email, and free appeal consultations. Its current supervising attorney, Kenneth Eade, represented the above-referenced sellers at co-counsel with Julie Guo, of JS Law, New York, after each Chinese-based seller had lost their appeals for the reinstatement of its Amazon seller account and restoration of sales proceeds.


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 Amazon Arbitratoin
 Amazon Sellers
 Chinese Amazon Seller
 Amazon Holding Funds
 Amazon Bsa Stricken


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