In a significant legal battle, British retailers are accusing Amazon of wrongfully freezing sales proceeds.
- Retailers claim Amazon has unlawfully withheld funds, impacting their business significantly.
- The lawsuit, led by Rosenblatt law firm, highlights grievances from sellers seeking rightful access to their earnings.
- Amazon’s new policy on holding funds for refunds has sparked widespread confusion and discontent among UK sellers.
- Previous allegations suggest Amazon prioritises its own products over independent sellers, raising competition concerns.
British retailers are pursuing a major lawsuit against Amazon, accusing the ecommerce giant of unlawfully freezing their sales proceeds. These retailers argue that Amazon’s actions have severely impacted their cash flow, with reports indicating that funds amounting to as much as £300,000 have been unjustly withheld in some cases.
Rosenblatt, a Fleet Street law firm, is at the forefront of this legal action, representing clients who have been struggling to gain access to their money. One retailer expressed their frustration, stating they have been ‘pleading’ with Amazon for over a year without receiving adequate responses, despite providing comprehensive documentation.
Amazon hosts approximately 100,000 sellers on its UK platform, which generated over £25 billion in turnover last year. According to Dean Nicholls, a partner at Rosenblatt, Amazon’s agreements with sellers outline clear rules, which he believes the company is breaching by its current practices. Nicholls is urging affected sellers to join the lawsuit to seek compensation.
The controversy follows Amazon’s introduction of a policy to temporarily hold funds to account for potential refunds. This decision has been contentious, particularly as many sellers in the UK and EU claim they were not sufficiently informed of the changes. Following numerous complaints, some sellers have reported the release of their funds.
Meanwhile, Amazon faces ongoing scrutiny amid separate allegations that it has prioritised its products over those of independent sellers. A previous lawsuit led by the British Independent Retailers Association accused Amazon of manipulating its platform, including the ‘buy box’, to benefit its offerings. While these claims were investigated, Amazon made commitments to the Competition and Markets Authority to ensure fair competition.
The mounting legal pressures signify growing discontent among British retailers over Amazon’s business practices.
