According to the website of U.S. District Court for the Northern District of California, a class-action complaint titled Shenzhen Shileziyou Technologies Co. LTD et al v. Amazon.com, Inc. et al, has been filed to the court, which was well-known for its role in dealing with cases involving defendants based in East Asia and the high tech sector.
A group of Chinese sellers was on the side of plaintiffs who claimed that their accounts had been terminated by Amazon. These sellers are Sopownic, Slaouwo, Deyixun, Cstech, Recoo Direct, Angelbliss, and Tudi, mostly from Shenzhen.
The filing mentioned that Amazon is "illegally withholding from plaintiffs and the proposed class members ranges from thousands to hundreds of thousands of dollars" which the US ecommerce giant has failed to provide any justifiable reason for withholding of the funds.
This month, Cindy Tai, Amazon's global vice president and head of Amazon's Global Selling-Asia confirmed on an event in Hangzhou that over the past 6 months, Amazon had shut down the accounts of over 600 Chinese brands, involving about 3,000 sellers.
She explained that the reasons for Amazon's clampdown are the fabrication of user identities, sellers' bribes with the third parties, the abuse of comment function, mass production of fake reviews, etc.
She denied that such actions by Amazon were for political causes. Instead, she said the revenue growth of Chinese sellers on Amazon remained impressive over the previous year, without any negative influence by the company's efforts.
As SCMP reported in July, more than 20 affected merchants once joined and seeked for a jointly lawsuit against the Amazon. However, they dropped the plan later because no common interest nor demands were reached internally.