If you’ve ever sold products on Amazon, you probably took some comfort in the company’s policy that discourages the use of sellers’ confidential and proprietary sales and marketing data to create and sell competing products. Unfortunately, Amazon CEO Jeff Bezos recently admitted that this policy is completely voluntary, and the e-retailer has in fact launched and sold competing products on its site utilizing confidential sales data — often at a lower price, undercutting its third-party sellers.
By allegedly using third-party sellers’ confidential sales and marketing data to create its own similar products, Amazon can sabotage smaller businesses by offering the same products at a lower price and with more digital real estate. This is just one of many anti-competitive tactics the company allegedly employs to drive its own business at the expense of its third-party sellers.
Third-party sellers whose businesses have been adversely affected by violation of Amazon’s policies could be owed compensation. If you think Amazon’s actions have caused your business to suffer, contact us for a free, no-obligation consultation. It costs nothing up front to hire us, and we get paid only if you recover a favorable settlement or arbitration award.
How Did Amazon’s Actions Hurt Third-Party Sellers?
Amazon offers third-party vendors an enormous platform through which they can sell their products, and on paper, it sounds like a win-win for third parties and Amazon (which takes a cut of each transaction). In reality, though, Amazon seems to tip the scales in its own favor.
Several third-party sellers have alleged that Amazon improperly took their confidential and proprietary data on the platform, which the company then used to compete with those same sellers via Amazon’s own private label business on the site.
When one also considers Amazon’s tendency to mine customer data and analyze sales trends that only it has access to, it’s not hard to imagine a third-party seller’s business cratering as a result of Amazon’s actions. How can they be expected to compete when Amazon has improperly taken their proprietary data, undercut them on the price, and marketed it’s own private label product more prominently on the site?
As a Third-Party Seller, Why Should I Speak With an Attorney?
Amazon’s actions may have cost third-party sellers hundreds or even thousands of dollars in losses. If your business has suffered because of one of Amazon’s policies, you could be owed money for damages. An attorney can gather evidence, build a persuasive case, present it to an independent arbitrator, and fight for full compensation on your behalf.
Morgan & Morgan is America’s largest personal injury law firm, and we have more than 30 years of experience battling corporate goliaths like Amazon. With nearly 600 attorneys and 2,500 staff, we are one of the few firms that can take on a company of this size and win. We’ve recovered over $7 billion for our clients, and we may be able to help you.
It costs nothing up front to hire us, and we get paid only if we successfully resolve your case. To find out if you’re owed compensation because of Amazon’s actions, contact us today for a free case review.