Amazon Sellers Case News: Rising Counterfeit Claims On Amazon
Every day, Amazon Sellers Lawyer receives new submissions from sellers like you facing problems on Amazon. One trend we have seen recently is the massive rise of sellers being reported for selling counterfeit products. Regardless of if these accusations are true, you have rights as a seller and can fight back. This guide walks sellers through a basic guide to counterfeit claims, appealing them, and when you may have a case against the complainant.
Counterfeit Goods Allegations On Amazon
Being accused of counterfeit products on Amazon means that another brand is saying that you are unlawfully selling goods that bear their protected intellectual property (IP). Unlike a typical IP case though, counterfeit alleges a faking of another brand’s identity in order to appear as them.
Counterfeit complaints are serious because they allege that you are violating the law, which Amazon must take very seriously to avoid legal action against them. For this reason, Amazon often acts first against you, and tends to side with complainees unless you have overwhelming evidence in your favor. This is also why counterfeit claims can lead to account suspensions, frozen inventory, and withheld funds, because Amazon does not want to continue doing business with people who they believe are breaking the law.
False Counterfeit Allegations
Brands have been known to use counterfeit reporting to force independent sellers out of their product space. Regardless of if your product is authentic or not, they may use Amazon’s brand protection reporting tool to attempt to hit your product with a counterfeit claim. We will discuss how to appeal these types of claims later, but it is important to know that just because you have been accused of counterfeit products, it does not mean you are guilty.
Can Complainants File Counterfeit Claims Without a Test Buy On Amazon?
Unfortunately, yes. Because Amazon’s reporting and enforcement systems favor protecting brand owners, you can be suspended before a test buy is completed. Though verification of authenticity is important for a legal counterfeit case, Amazon has the ability to suspend you before verifying the accusations against you.
Amazon Appeals Strategies For Counterfeit Claims
There are two important paths to consider when approaching a copyright infringement case: one is if the accusations against you are false, and the second is if the accusations may have validity. Both, however, will require gathering evidence of your supply chain, purchase orders, and the completion of an Amazon Plan of Action (POA) appeal.
Amazon Seller False Counterfeit Allegation Appeals
If you have been falsely accused of selling counterfeit products on Amazon, you have the leverage to seek a retraction from your complainant. Retractions can instantly restore your products and end the suspension on your account. Directly reaching out to your complainant and providing evidence that you have genuine products also demonstrates whether or not they know they are making a false accusation.
If you provide documentation to your complainant and they do not retract their complaint, you may use escalation to guarantee further results. First, sending a pre-arbitration letter to Amazon can lead to reinstatements if your standard POA appeals are not working. Next, you may threaten legal action against your complainant on the basis of defamation and tortious interference with contract.
All sellers form a contract with Amazon by signing up to be on the platform through the Business Solutions Agreement (BSA). By falsely claiming you are counterfeiting, your complainant is defaming you to Amazon, which can lead to a loss of seller privileges that interferes with your contract. These are serious legal problems that can allow you to seek damages for the opportunity loss you experienced through being suspended on Amazon.
Navigating Counterfeit Claims Without Proof of Authenticity
If you are unable to verify the authenticity of your products, navigating counterfeit complaints can be more challenging but you can still achieve reinstatement. If you are willing to exit the product space to avoid legal escalation against you, removal of accused listings is an important step. You can still seek retractions from your complainant by stating that you cannot verify the authenticity of the product and that you will cease selling it.
Reach Out To Amazon Sellers Lawyer Today!
Amazon Sellers Lawyer sees counterfeit cases of both kinds all the time. Two examples from the past few weeks exemplify strategies to secure account reinstatements. In one case, a client reached out to us after receiving the counterfeit allegation and provided proof that their products were legitimate. After seeking a retraction from the complainant, we moved to completing a standard Amazon POA which included full supply chain documentation to highlight the authenticity of sold products. On first review, Amazon sided with our client and restored the product listing.
Another recent case saw a client come to us with inventory that they could not verify authenticity for. The client was struggling to restore access through traditional POA appeals, so we sought a retraction from the complainant. The Amazon Sellers Lawyer team got reinstatement for our client without admission of guilt through strategic negotiations with the complainant – which only required removal of accused products from the client’s storefront.
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If you are facing counterfeit allegations and don’t know what your best next step is, reach out to Amazon Sellers Lawyer today! Our team consists of former Amazonians, who know the insides of the enforcement team, and experienced litigation lawyers who can help if your case is escalated. Fill out our online form here or call us 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.