Amazon’s New Terms of Service for Sellers: Paragraph 7A: Disclaimer & General Release
Amazon is an ecommerce giant. They have dominated the industry for so many years. This made them realize that they are exposed to more claims and liabilities as their company grows. Thus, they made sure all measures are in place to protect their interests.
Just recently, they have made changes to their TOS. However, it can be noted that Paragraph 7 remains unchanged. This paragraph focuses on their Disclaimer and General Release Statement:
THE AMAZON SITES AND THE SERVICES, INCLUDING ALL CONTENT, SOFTWARE, FUNCTIONS, MATERIALS, AND INFORMATION MADE AVAILABLE ON OR PROVIDED IN CONNECTION WITH THE SERVICES, ARE PROVIDED “AS-IS.”
The first sentence in the same paragraph emphasizes that when you accept to use the service, and participate in using it, you should take it as-is.
No later claims are allowed. You can never tell Amazon, “Oh, I thought this service would include a specific feature,” or, “I am dissatisfied. I want to invalidate this contract because I thought it included another portion of a selling feature that I wanted.” You are contractually required to accept it as-is. There are no extra guarantees that Amazon is providing in this provision.
In general, this is Amazon’s way of protecting itself from sellers who claim they do not know anything about the Terms of Service. In this paragraph, Amazon makes it clear that as a seller, you should take full responsibility to know what is in the Participation Agreement and abide by it.
AS A USER OF THE SERVICES, YOU USE THE AMAZON SITES, THE SERVICES, AND SELLER CENTRAL AT YOUR OWN RISK.
The next sentence releases Amazon from any future claims or liability that may arise from the use of their services. Using Amazon at your own risk means that you are solely responsible for any disputes that may be filed against you by another seller or company.
It can be concluded that Paragraph 7 was unchanged to further release Amazon from all forms of claims, even ones caused by their negligence. In the end, Amazon is not liable for anything even if they are at fault. This sounds unfair, but this is what Paragraph 7A clearly states.
WE WILL NOT BE LIABLE FOR ANY SERVICE INTERRUPTIONS, INCLUDING BUT NOT LIMITED TO SYSTEM FAILURES OR OTHER INTERRUPTIONS THAT MAY AFFECT THE RECEIPT, PROCESSING, ACCEPTANCE, COMPLETION, OR SETTLEMENT OF ANY TRANSACTIONS.
The last portion of Paragraph 7A makes it clear that Amazon is not liable if there is a flaw or error in their system. If for whatever reason Amazon’s selling platform goes down, has a server crash, and leaves you unable to process any sale, it is not their problem.
By entering into the new Participation Agreement, you are aware that errors in the software can occur. And, if they do, Amazon is not liable for the damages that follow. This provision is obviously not great for sellers. However, this is what you agreed to when you signed up to sell on Amazon.
Call today for a free consultation: 1-877-9-SELLER.
Please make sure you watch all of our videos regarding the loopholes Amazon created in the new TOS.