Chinese companies banned for fake reviews denounce Amazon
Several Chinese companies have filed a complaint against Amazonafter the online store had them banned for buying fake reviews on the platform. In the past year, Amazon has banned as many as six hundred Chinese companies from the marketplace they compensated users for having positive reviews. The companies, however, have signed a class-action, claiming that Amazon is “illegally withholding funds” that would be due to them.
Chinese companies banned for fake reviews are calling Amazon into question
Sopownic, Slaouwo, Deyixun, Cstech, Recoo Direct, Angelbliss and Tudi are some of the companies banned from the largest ecommerce site in the world. Amazon removed these accounts because they would compensate customers with vouchers or discounts for putting five-star reviews on Amazon. But now these companies have launched a class action against the platform.
They try to “recover funds that are illegally and improperly held by Amazon“. And they want “to stop any further embezzlement of funds that are legally and by right owed to thousands of sellers on Amazon.”
Amazon has set up in 2016 of the policy against “incentives for reviews” from sellers. Chinese companies that call into question Amazon are not denying that they have committed an offense. However, they claim that Amazon is withholding “hundreds to hundreds of thousands of dollars” in profits that are owed to them.
Amazon’s contract termination clause (which you can read here) provides that Amazon may unilaterally withhold the funds of companies that have violated the rules on the platform. So it seems difficult to have room to protest in court. But Chinese companies argue that Amazon handles discount coupons, so they should have been aware of how they were giving out gift cards in exchange for positive reviews.
We find it difficult for such an argument to take hold: even if it is true, the fact that Amazon hasn’t been tax before doesn’t stop it from being tax now. However, we will keep you updated on the matter, in case Chinese companies manage to obtain unexpected results.