amazon fake reviews class action
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Amazon Fake Reviews Class Action Lawsuit Overview:

  • Who: Retailers based in China are suing Amazon after the retail and tech giant banned them, claiming they had paid for fake reviews. 
  • Why: The sellers say Amazon is unfairly holding their money. But Amazon says their claims must go through arbitration.
  • Where: The class action lawsuit is pending in California federal court.

Chinese companies booted off Amazon for allegedly incentivizing fake reviews are suing the tech giant, saying Amazon owes them hundreds of thousands of dollars. 

Amazon has hit back, saying the sellers signed an agreement blocking them from suing it in court. Instead, they must resolve their class action allegations individually through arbitration or private dispute resolution.

Amazon filed its motion to dismiss the class action lawsuit on Nov. 12 in a California federal court. 

Amazon Sellers Say Money Withheld in Class Action Lawsuit

The class action was originally filed in September, alleging Amazon has withheld money from thousands of Chinese individuals and businesses banned from the tech giant’s marketplace, Law360 reports.

Seven named plaintiffs are looking to represent a class of at least 50,000 sellers in the US and China. 

They say Amazon routinely holds payments—anywhere from a few hundred dollars to hundreds of thousands of dollars—for longer than permitted by its own agreement without offering any reasonable justification or business purpose.

Amazon hit back this week, saying the plaintiffs were simply in breach of its contract.

“Plaintiffs acknowledge they offered customers incentives in exchange for reviewing Plaintiffs’ products,” Amazon argued. 

“In other words, Plaintiffs paid for reviews—repeatedly violating and flouting the policies they agreed to abide by. As a result of these blatant violations (and other misconduct), Amazon blocked Plaintiffs’ seller accounts, as expressly authorized by the BSA governing the parties’ commercial relationship,” argued the online retailer in court documents. 

Amazon added that the same contract the plaintiffs are suing under does not allow them to sue in court, instead, they must arbitrate any claims. 

Amazon has been under increased scrutiny by regulators, both for fake reviews and the safety of products sold on the platform. The Federal Trade Commission warned Amazon about fake reviews in legal action over deceptively marketed weight loss pills. 

The online retail platform also faces a lawsuit lodged by the Consumer Product Safety Commission seeking to protect consumers from dangerous products sold on Amazon

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The plaintiffs are represented by Edward Chen of YK Law LLP. 

The Amazon Fake Reviews Class Action Lawsuit is Shenzen Shileziyou Technologies Co. Ltd. et al. v. Amazon.com Inc. et al., Case No. 3:21-cv-07083, in the U.S. District Court for the Northern District of California.


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4 thoughts onAmazon Says Class Action Filed by Sellers Who Paid for Fake Reviews Should Be Thrown Out

  1. Donita Damman says:

    I’ve bought stuff because of fake reviews and Amazon only covers what sold by Amazon

  2. CE says:

    Amazon is blocking unfavorable reviews and then removing all reviews ever submitted by an account as verified buyers without investigation or justification. It is also rejecting positive reviews that mention a refund by the seller that isn’t in exchange for a positive review. It sends out free products to some people to have them boost the positive reviews for certain sellers.

  3. P Black says:

    I have a card, I am saving it, Amazon vendors are sending cards that say make a good review, the vendor will give you a free gift, Amazon should take responsibility for their vendors, Amazon knew about the cards, add me to the suit

  4. Janet says:

    Amazon does have faults, however; for most sellers in the Asian community demonstrate deceit to customers. In 2020, I purchased an item and fought to get my money refunded and canceled. Today, I really do not like to purchase items from Asians on any website. I do recall one incident where I purchased a product from a seller that cost over thirty dollars. The seller and I had a conversation that could not be reached. So, I gave the seller a bad review and the seller wanted to refund my money if I remove the review. I told the seller my response stands. I agree with Amazon in this case. I like to support all sellers, but I hesitate when it comes to the Asian community from all websites.

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