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Amazon.com, Inc. (AMZN) Sues 3 More Sellers Over Fake Reviews

Amazon.com (AMZN) Amazon

Amazon.com, Inc. has filed lawsuits against three sellers for buying fake reviews for their products on the company’s e-commerce portal. The sellers, operating on Amazon.com, include two sellers from the United States and one from the European Union. According to a report from Tech Crunch, the e-commerce giant found that the defendants created fake reviews for their products to influence customers’ buying decisions.

Amazon.com Inc (AMZN) Bans Reviews

Amazon continues to crack down on fraudulent reviews across its site. Amazon.com is the global online market place where you can buy just about everything – the site is only a step away from selling cars online. However, the massive scale of the business means that the firm is unable to hold inventory for all the product it sells. It doesn’t make sense logistically and economically for the firm to hold that much inventory across so many product categories. Since the beginning of last year, the e-commerce giant has sued more than 1,000 defendants posted fake reviews on its site in exchange for compensation.

Amazon Taking Action Against Sellers Buying Fake Reviews

In one lawsuit, the company claims that that 1,269 out of 2,343 reviews, or 54%, across 11 products from the seller Arobo Trade INC/Aumax Direct were fake. The e-commerce company found that another seller, Cyande Group, posted 300 of 582, or 52%, fake reviews for four products.

“The result of these intentional efforts is the deception of Amazon’s customers and unfair competition with sellers on Amazon’s marketplace,” Amazon claims, reported by Tech Crunch.

The company has started these sorts of crack downs because review abuse on its site has become a common thing. It seems that many customers have started to believe that most reviews on the company’s site aren’t trustworthy.

Four month ago, the e-commerce giant filed lawsuits against three sellers, including a Chinese company, for creating fake reviews about their products. The sellers were accused of using ‘sock puppet’ accounts to post fake reviews about their products.

Amazon.com, Inc. has been trying hard to maintain its reputation because it is losing credibility (and fast) with buyers. The firm has sued more than 1,000 parties for allegedly offering fake reviews for sale to post on the retailer’s website. In April, the e-commerce titan sued in King County Superior Court several websites operators for allegedly selling fake reviews for books and other products.

“Our goal is to eliminate the incentives for sellers to engage in review abuse and shut down this ecosystem around fraudulent reviews in exchange for compensation. As long as this type of abuse exists, we will continue to take enforcement and legal action against sellers participating in fraudulent reviews,” said an Amazon spokesperson was quoted as saying by Tech Crunch.

The spokesperson also said that “the vast majority of reviews on Amazon are authentic, helping millions of customers make informed buying decisions every day.”

Amazon Serious About Fake Products, Reviews

Review abuse is becoming a big problem for the company. In the last couple of months, the e-commerce giant has had to deal with complaints about sellers who sell fake products on its platform. In a bid to stop the sale of counterfeit products, the firm has insisted that sellers who want to sell high-profile brands such as Hasbro, Adidas, and Nike must satisfy some minimum requirements to confirm the originality of their products.

To start with, sellers must upload a copy of invoices from a manufacturer or its licensed distributor to show that you actually bought the real deal and not some fake knock offs from China. More so, the invoices must not be more than 90 days old and it must show the purchase of at least 30 items across five different product categories. More so, sellers are required to pay a non-refundable fee of $1,500 per brand to show their commitment to selling original products.

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