Fendi filed a lawsuit in Florida against online sellers on Amazon and eBay for selling counterfeit products and for using Fendi’s trademark.
There are a lot of problems with this lawsuit and Fendi is trying to gain as much profit from this measure as they can in a way that could harm your business online.
Fendi sought and obtained a “TRO” (temporary restraining order) against dozens of Amazon Sellers and eBay Sellers. These Amazon Sellers and eBay Sellers’ accounts are likely frozen. The TRO may be crippling to the suspended Amazon Sellers and their businesses.
Fendi Lawsuit Against Amazon Sellers: What Amazon Sellers Need To Know
Fendi may or may not be aware that it has likely:
- Caused innocent Amazon Sellers significant harm;
- Caused entire Amazon Sellers’ accounts to be frozen when Fendi products were only a small part of their business;
- Harmed multiple Amazon Sellers who never purposely became involved in sales of counterfeit goods but, as with all retailers, counterfeit products often make their way into legitimate sellers’ inventory despite extensive efforts to identify and exclude counterfeit products.
“Fendi, in their lawsuit, lacks recognition of Amazon’s commingled inventory system that often mixes up the source of individual products consumers receive,” says CJ Rosenbaum, 1 of the 2 founding partners of Rosenbaum Famularo, PC, law firm behind AmazonSellersLawyer.com.
“Fendi sued dozens and dozens of Amazon Sellers with no recognition that they can’t tell whose goods were delivered to what consumers. Now you have Amazon Sellers of genuine products getting mixed up and harmed along with other sellers who might be selling counterfeit goods. It is not right. Big brands should be more careful.”
What Suspended Amazon Sellers Should Know:
If you are an Amazon Seller and were accused of selling counterfeit Fendi products in the Fendi lawsuit, you should know that:
Once you are served with the lawsuit documents, your time to respond is limited.
If you do nothing, you are at a significant risk of Fendi obtaining a default judgment against you. “It is always important to respond to the litigation. Hire a lawyer to respond to the lawsuit ASAP” says Travis Stockman, Managing Attorney of the Litigation Unit at Rosenbaum Famularo, PC. “You will notice that the message you receive with the temporary restraining order provides attorney contact information. It’s very important to get in touch with them. The last thing Amazon Sellers should do is ignore this lawsuit. If you don’t respond, you risk a default judgment. A default judgment is a final order by the court in which liability is presumed.”
It is also important to be aware of the First Sale Doctrine.
The First Sale Doctrine is a body of law in the United States that states, in sum, if you bought a product, you have the legal right to sell that same product, with a handful of exceptions. This means if you are an Amazon Seller of Fendi products who has been legally sourcing your products, your sales may be protected under the First Sale Doctrine.
You may have claims against Fendi if the products that you sold were genuine.
Amazon Sellers have rights. There are various possible causes of action in the law that may apply if your Fendi products were 100% genuine or you never sold any Fendi products at all. CJ confirmed that “when appropriate, Sellers’ rights and counterclaims can be used as leverage to obtain releases from lawsuits and retractions of baseless complaints against Amazon Sellers.”
If you would like to learn more about Sellers’ rights, contact CJ Rosenbaum or Travis Stockman at Rosenbaum Famularo, PC: 1- 877-9-Seller or email CJ at: CJ@AmazonSellersLawyer.com.
Anders is a content creator for Rosenbaum Famularo, P.C. Anders recently earned his degree in journalism from Hofstra and has six years of professional journalism experience. He has written for numerous online and print publications including SB Nation and The Hofstra Chronicle.