EVERYTHING YOU NEED TO KNOW ABOUT UNJUST ENRICHMENT CLAIMS
When a business is unjustly enriched, they are given benefits or compensation that they did not rightfully earn.
In this video, we discuss Amazon and the unjust enrichment claim made by sellers. We also cover the benefits and compensation that Amazon receives as a result of this claim.
If you are an Amazon seller, you may be wondering if you can file a claim for unjust enrichment.
I’ll explain what the cause of action is, and some of the benefits and compensation you may be able to receive if your case is successful.
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More information about unjust enrichment claims on Amazon:
Plaintiff sued Amazon for (1) trademark infringement under the Lanham Act; (2) unfair competition based on false representation in violation of Lanham Act; (3) unjust enrichment; (4) injunctive relief; (5) declaratory relief; and (6) violation of the Utah Truth in Advertising Act.
What Is Unjust Enrichment? the “retention of a benefit conferred by another, that is not intended as a gift, and is not legally justifiable, without offering compensation in circumstances where compensation is reasonably expected.” Recovery for unjust enrichment typically occurs where the parties did not have a contract, or when the contract is found to be invalid.
Amazon has no grounds to pierce the corporate veil. Amazon has made not claims as of yet to pierce the corporate veil and furthermore, there are no grounds to do so under Washington law. Washington courts identify two prongs to the test for piercing the corporate veil: “First, the corporate form must be intentionally used to violate or evade a duty; second, disregard must be necessary and required to prevent unjustified loss to the injured party.”
Regardless of the scenario, it is unjust to allow Sellers privileges to be suspended and result in lost profits whether an honest mistake or baseless complaint is made. Multibillion dollar platforms like Amazon have the financial and technological resources to monitor infringement more accurately without facing an undue burden.
Sellers who have tried to sabotage competitors’ products with fake reviews will find that tactic much harder to pull off, and with a 5 per week limit, far fewer opportunities to do so. For reputable sellers who have found themselves unjustly under attack from other sellers, this is good news.