Can Amazon suspend seller accounts?

Amazon merchants are often surprised by the deactivation of their accounts. Particularly during the pre-Christmas season, this often results in a significant loss of turnover for many. But is Amazon simply allowed to suspend seller accounts?

Via an email sent by the system, Amazon informs merchants of a suspension of their account. As a reason, a breach of the terms of use is typically stated in a blanket manner. At this point, merchants are usually unable to even log in. The credit balance is retained and can no longer be used by the merchant. Whether there was an actual concrete breach often cannot be determined or only after weeks of correspondence with the company. In only a few cases does Amazon permit a release. Prior to this, various disclosures and an action plan are requested.

It is obvious that such a procedure costs some merchants their livelihoods.

Can Amazon suspend seller accounts?

The Regional Court Munich I (LG München I) ruled in an order dated 14.01.2021 – 37 O 32/21 that Amazon is prohibited from deactivating the seller account without specifically naming the breach and without prior hearing, and from retaining the credit balance.

In Amazon's conduct, the court perceived a deliberate obstruction and an abuse of its dominant market position. A suspension of the merchant account without an apparent factual basis creates an existentially threatening situation and is inequitable. The court also noted that Amazon refused individual correspondence to resolve the problem.

Amazon cannot rely on its general terms and conditions, as these do not contain any provision for the procedure to precede a temporary or permanent account suspension.

Amazon appealed the decision. The Regional Court Munich I (LG München I) subsequently, in a final judgment dated 12.05.2021 – 37 O 32/21 – revoked the suspension order. In the present case, the court took the view that the account suspension was justified. The merchant claimant had previously been suspended on the basis of identical allegations.

Conclusion

The deactivation of a seller account at Amazon must be substantiated. A blanket assertion of a breach of terms of use is not sufficient. This was also confirmed by the Regional Court Hannover (LG Hannover) in an order dated 22.07.2021 – 25 O 221/21 – In the event of a deactivation of the seller account without substantiation and prior hearing of the merchant, a claim for the cessation of account and credit balance suspension may be considered.