Amazon Seller Marketplace News: The Turning Tide on Schedule A Suspensions
When your account is suspended without clear notification, it is possible you were named in a Schedule A lawsuit. This places a Temporary Restraining Order (TRO) on your seller account, potentially freezing your ability to sell products and freezing your account funds.
In this article, we break down what Schedule A cases are, how to navigate Schedule A seller suspensions, and how the tide may be turning in favor of independent sellers with these cases.
What Are Schedule A Cases?
Schedule A is a form of intellectual property (IP) enforcement that takes advantage of the legal system to block multiple sellers from listing products at once. These cases can name dozens of defendants, placing TROs on their ecommerce accounts and placing an immediate suspension on their ability to sell. This is usually done anonymously, meaning the first notification you get that you were named is the suspension on your seller account.
Schedule A cases are extensions of IP law, meaning that a brand owner is claiming misuse of their protected property. Types of IP violations can relate to, trademark, copyright, and patent infringement. Brand owners may also use claims of counterfeit products sales as justification for a Schedule A case against you.
How To Deal With Schedule A
Schedule A cases are complex because they require dealing with both a legal threat against you and the suspension of your Amazon account. When facing a Schedule A claim, it is important to analyze the position of your account, what product led to the suspension, and evidence that you have of sourcing that product. The good news is that evidence you gather to support your Amazon Plan of Action (POA) appeal will also benefit you if you face escalated legal action.
The types of evidence that are key to these cases often relate to showing how your products are sourced, including complete supply chain documentation and any communications with your manufacturer. Sellers should know that being named in a Schedule A lawsuit does not mean that you are guilty even though a suspension has already been issued, rather, courts place the temporary restraining order as a means of preventing potential further violations of intellectual property law. This means that you may have stronger legal positioning than you think – it is therefore important to quickly begin fighting the claim so you can get back to selling products.
Account reinstatement is done through an Amazon POA, which consists of three sections, a root cause analysis, immediate corrective actions, and future preventative measures. Your job when writing an appeal is to demonstrate a complex understanding of what led to your suspension and how you will avoid it in the future. Even if you have not infringed on another brand’s IP it is important to address why they thought you did, and then show evidence that you did not.
How Recent Schedule A Cases Are Changing
Recently, Amazon Sellers Lawyer has represented multiple clients in major Schedule A victories for sellers. When we were contacted by these clients, we analyzed their positions and learned both were innocent of all accusations of intellectual property violations. This allowed us to use strategic evidence to show that they were wrongly named in the Schedule A lawsuit.
For one client, this led to an expedited case resolution, with full access to their seller account restored. Our other client had sustained significant losses due to the TRO placed on their account, as such we sought damages for their lost revenue. Through this case, we were able to secure a $25,000 payment to our client as a result of the suffered damages.
While these cases are not applicable to all sellers facing Schedule A lawsuits, wins like this are important for demonstrating that brand owners can be punished for abusing the IP system.
Contact Amazon Sellers Lawyer Today
At Amazon Sellers Lawyer, we have been exclusively committed to helping ecommerce sellers navigate their legal issues since 2016. We have seen the rise of Schedule A enforcement and are here to help you defend against TROs and seek reinstatement of your seller account. If you are currently facing suspension, contact us today through our online form, or at 212-256-1109.
About the Author
CJ Rosenbaum, Esq.
CJ Rosenbaum is the founding partner of Amazon Sellers Lawyer. He’s been practicing law since 1995, and since 2016 his firm has focused exclusively on Amazon sellers – issues like suspensions, intellectual property disputes, and love inventory.
CJ has written six books on Amazon seller legal issues including the Amazon Sellers’ Guide to Copyright Law. He has spoken at major industry events like the Prosper Show, Global Sources Summit, Retail Global. CJ also works with the Amazon Sellers Lawyer team to provide free content for Amazon sellers. This is available through their online blog and YouTube channel, frequently covering major Amazon updates and important topics relevant to the seller space.
Through BrandProtectionAmazon.com, the firm also supports brands in protecting their products. This gives the team the unique opportunity to learn from case wins on both sides of the fence, strengthening protection for both the sellers and brands that Rosenbaum & Segall P.C. represents.
Amazon repeatedly rejecting your Plan of Action? Amazon Sellers Lawyer handles suspension appeals and account reinstatement cases – including arbitration against Amazon when they’re withholding seller money. Contact us to discuss your situation and figure out the best path forward.