We have received a lot of inquiries from sellers regarding Amazon’s policies and the type of conduct that constitutes IP infringement. There are a lot of misconceptions about what Amazon considers prohibited conduct. One of the most common complaints accuses sellers of being “unauthorized re-sellers.”
Unauthorized Re-Sellers
The vast majority of Amazon sellers acquire and sell their products through the “grey market.” The “grey market” refers to a marketplace where sellers purchase goods from a variety of sources but not from the original manufacturer or brand owner. A common concern among sellers is the legality of purchasing products from the grey market.
Acquiring products from outside a manufacturer or brand owner’s approved distribution chain is legal. An IP complaint that accuses a seller of purchasing product from outside the brand owner’s authorized distribution chain is a baseless complaint. Not being part of a brand owner’s authorized distribution chain does not prohibit someone from purchasing or reselling the brand owner’s product. Being an “unauthorized re-seller” is not valid grounds for suspension on Amazon.
Minimum Advertised Pricing
Another common type of complaint involves violations of Minimum Advertised Pricing (MAP). Absent a contract with a manufacturer or brand owner, a seller is free to set their own pricing. Amazon has made it clear that violating a manufacturer or brand owner’s MAP does not constitute actionable IP infringement.
Ownership Of Amazon Listings
A third but less common misconception revolves around ownership of Amazon listings. When a brand owner creates a new listing, other sellers are free to join that listing so long as they sell the exact same product with the exact same specifications and packaging. The creator of the listing does not own the listing. Amazon has made it clear that nobody can own a listing.
But, if a seller’s product contains even minor deviations in specifications or packaging then all bets are off. Joining an existing listing while failing to provide the exact same product is grounds for a valid IP infringement complaint.