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For many Amazon sellers, the platform is a vital part of their business. But when something goes wrong, such as an account deactivation, withheld funds or stock becoming inaccessible, the legal position can quickly become confusing.
In this episode of the Lawdit Podcast, Michael Coyle looks at one of the first questions any seller needs to answer before taking legal action against Amazon: who are you actually dealing with, and where should any claim be brought?
That may sound like a technical point, but it is an important one. Amazon is not a single legal entity. The Amazon brand sits over a number of separate companies, each with different roles, agreements and responsibilities. Identifying the correct entity can therefore be critical before sending pre-action correspondence or issuing proceedings.
What is pre-action?
Before litigation begins, the parties are generally expected to engage in what is known as the pre-action stage.
Michael describes this using a useful analogy. If litigation is the house, pre-action is the foundation. It is the stage where you explain your case, set out what has happened, identify what you want the other side to do and give them an opportunity to respond before formal proceedings are started.
For an Amazon seller, that might involve setting out the circumstances of an account suspension, money being retained or another dispute which has not been resolved through Amazon’s normal internal processes.
If that correspondence does not resolve the issue, the seller then has to decide whether to walk away, accept whatever outcome has been offered or move towards litigation.
Which Amazon companies are relevant?
For many marketplace disputes involving sellers who joined after August 2024, the key marketplace entity discussed in the podcast is Amazon EU S.à r.l., a Luxembourg company.
Michael explains that this company operates the Amazon Services Europe Business Solutions Agreement, usually referred to as the BSA. This agreement governs much of the relationship between Amazon and marketplace sellers.
A separate company, Amazon Payments UK Limited, may also be relevant where the dispute involves money being held.
The podcast explains that Amazon Payments UK Limited is authorised and regulated by the Financial Conduct Authority and that its relationship with sellers is governed separately, including under the Amazon User Agreement and the Payment Services Regulations 2017.
This distinction matters because a dispute about access to the marketplace and a dispute about retained funds may involve different agreements and different legal entities.
Do UK sellers have to sue in Luxembourg?
One of the obvious concerns for UK sellers is whether a dispute involving Amazon EU S.à r.l. must be pursued in Luxembourg.
Michael explains that this is not necessarily the case.
Amazon Payments UK Limited is an English company and its agreement is governed by English law. Amazon EU S.à r.l. also has a registered UK establishment and, as discussed in the podcast, can potentially be served in England.
For that reason, sellers should not automatically assume that a claim must be brought in Luxembourg.
Which court could hear the dispute?
The correct court will depend on the value and nature of the claim.
Michael explains that claims below £10,000 may potentially fall within the small claims track, although the complexity of a particular dispute can also be relevant. Larger claims may be dealt with differently depending on their value and circumstances.
Court fees also need to be considered. The podcast notes that issuing a claim can involve a significant upfront fee, particularly where the value of the claim is high.
Getting the foundations right
The central message from this episode is simple. Before considering litigation against Amazon, sellers need to identify the correct parties, understand the relevant agreements and establish where the claim can properly be brought.
Getting those fundamentals wrong can mean wasted time, additional cost and potentially having to start again.
If your Amazon seller account has been deactivated, funds are being retained or you are facing another serious marketplace dispute, Lawdit may be able to help you understand the next steps.
Visit Lawdit.co.uk to find out more.
This article is for general information only and does not constitute legal advice.
