Recover Money from False Accusations of Counterfeit Sales
For Amazon sellers, it can be extremely frustrating to receive counterfeit complaints when you are 100% certain that your product is genuine. Keep in mind, it’s not the end of the line, the law firm of Rosenbaum Famularo, PC can provide a recourse.
As many Amazon sellers know, many of these individual brands who are enforcing their intellectual property rights on the Amazon platform like to assert a certain claim: tortious interference with contract.
What is tortious interference with contract?
Tortious interference with contract refers to your contract with Amazon. When someone makes a complaint against you, they are interfering with your contract with Amazon by making that complaint, knowing full well that it can cause a suspension of your account or the degradation of the value of your account.
This is good news for sellers who are selling genuine products and have received false accusations of counterfeit sales because this can be used against the complainants. As these complainants are aware, every seller on Amazon is entered into the Business Solutions Agreement with Amazon. When you are on Amazon, you are aware of the existence of this contract.
As per Amazon:
THIS AMAZON SERVICES BUSINESS SOLUTIONS AGREEMENT (THE “AGREEMENT”) CONTAINS THE TERMS AND CONDITIONS THAT GOVERN YOUR ACCESS TO AND USE OF THE SERVICES AND IS AN AGREEMENT BETWEEN YOU OR THE BUSINESS YOU REPRESENT AND AMAZON. BY REGISTERING FOR OR USING THE SERVICES, YOU (ON BEHALF OF YOURSELF OR THE BUSINESS YOU REPRESENT) AGREE TO BE BOUND BY THE TERMS OF THIS AGREEMENT, INCLUDING THE SERVICE TERMS AND PROGRAM POLICIES THAT APPLY FOR EACH COUNTRY FOR WHICH YOU REGISTER OR ELECT TO USE A SERVICE (IN EACH CASE, THE “ELECTED COUNTRY”).
The agreement covers, among other things, infringement. When you go to file an infringement claim against a seller, you are fully informed of the repercussions of your complaint, including the suspension of the seller’s account, which is the termination of that contract.
If the complainant acts in bad faith, maybe to remove you as their competitor, and they knowingly file a false counterfeit complaint, they know that it’s going to breach your contract. You might be able to hold them liable for tortious interference with contract. If your company is now tainted due to these counterfeit complaints, Amazon can suspend you at any given moment, it they haven’t suspended you already. Additionally, you can be on the line where one more complaint could result in the suspension of your account.
There are significant damages associated with a false claim.
If the complainant (knowingly or negligently) made a false complaint saying that you sell counterfeit goods, there is recourse available to Amazon sellers.