Chinese companies banned from using paid reviews sue Amazon

What the heck ?! Has Amazon ever caught you doing paid reviews and throwing a banhammer? Then why not team up with several other vendors in the same situation and start a class action lawsuit against the tech giant.

Facets writes that on September 13, several Chinese companies filed a class action lawsuit against Amazon. The retailer has long been at war with paid review sellers and recently said it had closed 3,000 online stores associated with 600 Chinese electronics brands to get paid reviews and the like. activities.

While the companies in this case do not deny that they used paid browsers, they claim that Amazon is withholding several hundred to several thousand dollars from their reported revenues. But the Amazon Services Business Solutions Agreement, which applies to Fulfilled by Amazon (FBA) companies such as those in the complaint, says it can withhold funds if companies violate its policies.

The class action parties – Sopownic, Slaouwo, Deyixun, Cstech, Recoo Direct, Angelbliss and Tudi – are seeking to “recover funds illegally and improperly held by Amazon.” They also want to “stop any further misappropriation and misuse of funds that are legally and legally owed to thousands of Amazon sellers and merchants.”

Chinese firms argue that since Amazon is responsible for distribution under the FBA, the company should have known they were offering gift cards in exchange for positive reviews.

With over 300 million active customers and over 1.9 million channel partners worldwide, stamping out fake reviews is no easy task for Amazon. However, he claims to have deleted 200 million of them in 2020 before users could see them.

Earlier this year, Amazon blamed partly for the problem on social media platforms that many organizations use to get their fake reviews. It says the likes of Facebook and Twitter are in no rush to remove these groups from their platforms.

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