Amazon Sellers Hit by Fraudulent Trademark Complaints

Recently, Amazon platform experienced a large-scale listing removal event, with sellers facing malicious infringement complaints. This article delves into the incident, exposing potential extortion behaviors and providing a guide to help sellers protect their rights. It also calls on the platform to strengthen supervision, jointly maintain a fair competitive environment, and promote the healthy development of cross-border e-commerce. The article aims to equip sellers with the knowledge and strategies to navigate these challenges and advocate for a more equitable marketplace.
Amazon Sellers Hit by Fraudulent Trademark Complaints

Overnight, store traffic plummets, sales drop precipitously, and years of hard work vanish—this isn't hyperbole but the reality currently unfolding on Amazon's marketplace. Numerous sellers report their product listings being removed following dubious infringement claims, paralyzing operations. Is this a platform vulnerability or malicious competition? This investigation reveals potential extortion tactics and provides expert guidance for affected sellers.

Mass Listing Removals Hit Amazon Marketplace

Recently, multiple Amazon sellers reported across e-commerce forums that their listings were removed following infringement complaints originating from an email address containing "shil*@". The complaints alleged trademark violations, yet affected sellers maintain they sell generic products without registered trademarks. Even sellers with legitimate trademarks and patents weren't spared from these baseless claims.

The incident spans European markets, with some stores losing over a dozen listings. Attempts to contact the complainant proved futile as the email rejected all correspondence. The pattern suggests a coordinated attack, with sellers suspecting a service provider specializing in fraudulent takedowns for extortion purposes.

The Trademark Troll Behind the Scheme

Seller investigations uncovered crucial leads. The trademark cited in complaints—"Closhion"—was registered November 2021 by Chen Xiaohua, an individual from Quanzhou, China. Records show this person holds 17 U.S. trademarks and 13 EU trademarks, strongly indicating a trademark troll operation. This practice involves bulk trademark registrations followed by malicious infringement claims to extract settlements from legitimate sellers.

Amazon's Response and Seller Recourse

Amazon confirmed the "shil*@" email's malicious activity and blacklisted it. Some sellers received reinstatement notices, but recovering lost sales remains challenging. For affected merchants, prompt action is critical:

  • Scrutinize infringement notices: Carefully review Amazon's notification to identify the alleged violation type.
  • Conduct product audits: Verify whether your product actually infringes any intellectual property. If legitimate, cease sales immediately.
  • Challenge false claims: When certain of no infringement:
    • Request evidence from the complainant
    • Submit a detailed appeal to Amazon including:
      • Documentation proving independent product development
      • Comparative analysis differentiating your product
      • Production and sales records
  • Monitor Amazon's follow-up: Respond promptly to any additional information requests.

Preventative Measures for Sellers

Proactive protection strategies include:

  • Register trademarks/patents: Secure intellectual property rights for core products.
  • Regular listing audits: Ensure product descriptions and images don't inadvertently violate others' IP.
  • Industry awareness: Stay informed about emerging scam tactics and defense strategies.
  • Seller networks: Collaborate with peer merchants to share intelligence and countermeasures.

This incident underscores the escalating sophistication of marketplace fraud. While Amazon works to improve detection, sellers must prioritize IP protection and fraud resilience. Those employing unethical tactics ultimately undermine the ecosystem that sustains their business. Long-term success demands ethical operations, product quality, and consumer trust—values no shortcut can replace.