Amazon.com Asks Federal Judge to Compel Third-Party Seller Dispute to Arbitration

Seattle, Washington-based Amazon.com has reportedly asked a U.S. District Court to compel a lawsuit filed by two individuals who formerly sold third-party items using the website to arbitration. In a lawsuit filed in March, the two former sellers claim the company refused to pay them money they were owed and then closed their accounts. The former sellers asked the federal court to order Amazon to pay them the money they are allegedly due plus interest and other damages.

Amazon responded to the lawsuit by asking the judge presiding over the case to submit the dispute to arbitration. According to the company, both former sellers agreed to settle all disagreements through arbitration when they opened their seller accounts. In a 28-page document, Amazon also alleged it had sufficient cause to close both seller accounts. Amazon stated one seller, a Kentucky resident, was banned from the website for selling counterfeit videos. The other seller, a Texas resident, allegedly encouraged price-fixing and submitted inappropriate and abusive written communications to the company. Amazon also stated the company withheld the funds in order to account for refunds that were requested by dissatisfied buyers in accordance with the company’s seller agreement.

A Seattle judge has set a June 3rd deadline for a seller response to the company’s motion to compel arbitration. The former sellers reportedly plan to oppose arbitration of the dispute. Please stay tuned to Disputing for future updates about this case.