Section 2 of Amazon’s Business Solutions Agreement Withholding Seller Funds Clause Stricken Again

Amazon Sellers Attorney, a lawyer-supervised suspension appeal service, announced today that a Washington arbitrator has again stricken the controversial permanent withholding provision of section 2 of Amazon.com’s (AMZN) Business Solutions Agreement (BSA), which allows Amazon to permanently withhold any funds from a seller if Amazon determines the seller’s account has been used for illegal or fraudulent activity, or to repeatedly violate Amazon’s policies.

“This marks the first case this year following seven cases last year where we have prevailed against Amazon’s unenforceable permanent withholding provision,” stated Kenneth Eade, Attorney for the Claimant in the case.

The Washington Arbitrator ruled that “the provisions in the BSA and policies that allow Amazon to take the proceeds of the seller’s account in response to a seller’s violations do not provide for liquidated damages. Rather, those provisions provide for an unlawful penalty, and thus are void and unenforceable under Washington law.”

The final award, awarding over $200,000 in damages, interest at 12% since the account deactivation and reimbursement of Claimant’s costs, falls on the heals of the last award of 2023 on December 7, 2023, in which another Washington arbitrator struck section 2 as unconscionable and an unenforceable liquidated damages clause, and awarded over $200,000 in damages, plus interest at 12%.

Eade prevailed in seven other cases against Amazon this year, where section 2 was ruled as an unenforceable liquidated damages clause in all five cases. In two of the cases, arbitrators ruled that Amazon’s In-Person Verification (IPI) was not a condition for release of seller funds. One of the cases ruled that section 2 of the BSA was also unconscionable.

“The first such case I had where an arbitrator struck down Amazon’s funds withholding provision was in 2021. In that case, the arbitator also held the provision was not enforceable as a liquidated damages clause as well as unconscionable,” said Eade. “Unfortunately, the arbitration process results in non-precedential decisions, because arbitration awards are private and seldomly vacated by the courts,” he added. “However, I do not feel this should affect a seller’s decision whether or not to sue Amazon for the funds that rightly belong to them.”

About Amazon Sellers Attorney

AMZ Sellers Attorney® is an Amazon appeal service, supervised by lawyers, which serves third-party sellers worldwide with issues of suspension of their Amazon seller accounts and deactivation of listings through its website at www.amazonsellers.attorney. The firm provides 24-hour service to its customers by live chat, telephone, and email, and free appeal consultations. Its current supervising attorney, Kenneth Eade, represented the above-referenced sellers after they had lost appeal for the reinstatement of their Amazon seller account and restoration of sales proceeds.

Contact Information

Kenneth Eade

Supervising Attorney

AMZ Sellers Attorney®

(1) (888)806-2440

info@amazonsellers.attorney