Marketplace Protection Bill For Amazon Sellers

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Status of the Marketplace Protection Bill For Amazon sellers

  • First of its kind legislation
  • Currently under review by the Judiciary to senate
  • We hope to have this across the US

14C Objectives of the Legislation

  • #1: Requirement to have the terms and conditions in plain English that people can understand, referring to terms and conditions of use, dispute resolution.
  • People waive their rights when they sign up for seller central, we want that to be clear so sellers can read and understand. Even before they can become sellers.
  • #2: Sellers should be notified before changes are implemented to the terms so they can choose to continue or opt-out.
  • #3: When you get suspended you need to know why and what the recourse is and how to resolve it. Refusal to disburse funds belonging to seller. It should not happen.
  • Getting accounts suspended attracts the wrong people and can create a sort of scam where people broker the transaction of transferring problem inventory to other people and these people buying the inventory are not aware that they are buying a problem.
  • #4: Buy box transparency. What is it that results to preferential ranking in the buy-box? There may be issues with trying to get the algorithm behind this but this is not one of our priorities. However, it will be interesting to push this.
  • #5: Disposing or destroying product/ property of the seller. This is one of the concerns. People pay to have their items destroyed but the items end up somewhere else like yard sales etc. Another option should be to distribute this to charity.
  • Contact Good Will for disposing your products:1-800-GOODWILL, or visit a local Good Will store

Insurance Provisions of the legislation

  • Protecting buyers and sellers
  • Amazon does not enforce business insurance requirements.
  • Sellers should be provided insurance coverage for liabilities or damage claims by customers. We should be selling with a moral conscience.
  • Amazon has been circumventing their role in the transaction and that they do not have any liability.

What really is Amazon?

  • Amazon looks like it is a retailer not a marketplace.
  • The seller’s branding is not known – it’s Amazon.
  • Claiming to be a free market without any liability. But a recent decision of the Pennsylvania Court of Appeals disagrees.
  • Read the Pennsylvania decision HERE

Amazon’s Objections

  • Small sellers or occasional sellers can not be expected to get insurance
  • Legislation point: There should be a threshold for the requirement.

What rights do sellers give up when they sign up for Seller central?

  • You are waiving your legal rights.
  • You can not take Amazon to court – you have to go through arbitration
  • You also waive your rights to class-action lawsuit.
  • If you are an insider, or a person who signed up with Amazon and you get issues, the general response to your issues is “meh”.
  • In contrast to outsiders or people who have not signed up with Amazon, like third-party brands, complaining that you are infringing, Amazon acts quickly.
  • There is a difference in behavior on how Amazon treats insiders and outsiders
  • This is why Transparency in language is needed like when Amazon steals your idea, what are your remedies?

Who supports this bill:

Donate:1-800-GOODWILL, or visit a local Good Will store
Get involved and support this legislation or volunteer: OnlineMerchantsGuild.Org
We are looking for volunteers, developers and board members.
Got legal questions?


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