TEMPORARY RESTRAINING ORDERS for Third-Party Amazon Sellers
An increasing number of temporary restraining orders are being issued mostly by the court in Chicago, the northern district of Illinois, and the brands Agrarian, Luxotica, and General Tools are back at it, hurting sellers all over the globe.
This is the way temporary restraining orders work in the Northern District of Illinois. The brand goes into court and they file a lawsuit against as many sellers they can name. They immediately go back in front of the same judge and ask the judge in secret, without any opposition, to issue a temporary restraining order. Now the judges in this particular courthouse do it. It also gets done by the courts in Florida and right here in New York, in the Southern District of New York.
So they go in front of the judge and they say, “If you don’t freeze their accounts in secret, they’re going to keep selling or they’re going to open up new accounts, or they’re going to recall their inventory and resell it. So the court, you must, it’s an emergency. You must freeze everything right now and then notify them.”
More and more brands are using them to hurt third-party sellers. But the flip side of that is if you are a private label brand and you are having the same problem, you can use the same mechanism yourself. It’s bad for third-party sellers, but for private label sellers, you can use the same exact mechanism to stop counterfeiters from stealing your sales, even if those counterfeit products are being sold by Amazon itself.