In the more recent times, it has been reported that Amazon has undertaken the process of clamping down on thousands and thousands of online stores on its very own platforms due to infractions that have taken place against the company’s very own policy with respect to paid customer reviews. The move was shown to be the largest shutdown which has been witnessed up until this point, with the bulk of the brands that have been affected stemming from China. It has been claimed that in and around 600 brands were actually affected courtesy of the clampdown – totaling up to 3000 stores.
It has also since been said that the companies which have been affected by all that has went down aren’t taking all this lightly, as it has gone on to result in some rather serious financial dislocations as well as a downward review of their overall outlook too. Also, several of these companies have also taken upon themselves to file a class action lawsuit against Amazon due to its actions of shutting them out completely in the Amazon workplace. The complaint is actually dated September 13. All the companies which have been affected are in the process of jointly seeking to recover their funds – which are of course illegal being withheld by their correspondent in Amazon.
They are also in the process of requiring from a court to take a decision to stop any further misappropriation and misuse of funds that as per them are rightfully theirs due to the thousands of Amazon online sellers and merchants. The companies have been claiming that they have in fact been unfavorably targeted by this particular policy against incentivized reviews and hence want to be restored back to the platform.
For now, we don’t have an exact idea as to what will go down and what decision will be taken by Amazon or indeed the court. But this is yet another example of how tensions continue to boil between the US and China.