Recently, the world's largest e-commerce company Amazon has closed thousands of online stores on its platform, most of which are from China.
Around 600 Chinese brands were affected with a total of up to 3,000 online stores. Some of these popular Chinese brands are Recoo Direct, Angelbliss, Tudi, Sopownic, Cstech, and many more.
The reason is because there is a consistent policy violation, where these stores abuse reviews or paid reviews and also provide incentives in their online stores listed on Amazon.
This move is also the largest ever by Amazon because it has resulted in serious financial dislocations to the freezing of sellers' funds.
Now several affected companies have filed class-action lawsuits against Amazon for its actions because its stores have closed on Amazon.
The complaint was made on September 13, 2021. The companies are jointly seeking the recovery of their funds that were illegally and improperly withheld by the respondent, namely Amazon.
They also want a court decision to stop the further misappropriation and misuse of funds that thousands of Amazon's online sellers and merchants have legitimately and legitimately abused.
The company claims that they have been unfavorably targeted by a policy against intensive reviews and therefore wish to be reinstated back to the platform.
The 28-page document was filed by Edward Chen, on behalf of the plaintiffs against Amazon and several of its subsidiaries. Court papers were filed in the United States District Court for the Northern District of California.
