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Justitia DAO LLC Filed Demand for Arbitration Against Amazon for Seizing and Permanently Retaining Sellers’ Funds

SEATTLE, Nov. 14, 2023 /PRNewswire/ — On November 3, 2023, Justitia DAO LLC, represented by Savitt Bruce & Willey LLP, filed a demand for arbitration with the American Arbitration Association (“AAA”). Justitia DAO LLC is a Decentralized Autonomous Organization organized under the laws of Wyoming. Justitia DAO’s members are each former Amazon Sellers who have had their funds seized and permanently retained by Amazon and have assigned and contributed their legal claims to Justitia DAO.

As alleged in the arbitration demand, third-party sellers must agree to certain Amazon Services Business Solutions Agreement (“BSA”) – and establish an “account” with Amazon before they gain access to the consumers on the marketplace. Section 2 of the BSA (“Forfeiture Provision”) also contains a unilateral forfeiture provision that allows Amazon to withhold a Seller’s funds indefinitely, and then take those funds for itself, when Amazon determines, “in its sole discretion,” there is any “risk” to Amazon. Countless Amazon sellers’ proceeds, held by Amazon for the sellers’ sales of goods on the Amazon platform, have been appropriated by Amazon, at Amazon’s sole discretion, as a result of alleged “risk” to Amazon, including 2295 members of Justitia DAO who have had at least $22,880,627 seized by Amazon.

In its Arbitration Demand, Justitia DAO alleges that the Forfeiture Provision is an unenforceable penalty provision, unconscionable as a matter of law, and the taking of proceeds of sales without proper process or proof of damages constitutes a breach of contract and duty of good faith and fair dealing, and conversion, resulting in unjust enrichment. Justitia DAO also alleges Amazon’s continued and repeated enforcement of this unenforceable provision violates the Washington Consumer Protection Act.

Justitia DAO is seeking declaratory relief that such Forfeiture Provision is an unenforceable penalty provision, and all funds retained under the Forfeiture Provision must be returned.


Originally published at https://www.prnewswire.com/news-releases/justitia-dao-llc-filed-demand-for-arbitration-against-amazon-for-seizing-and-permanently-retaining-sellers-funds-301987716.html
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