Ecommerce Firms Face Rising Malicious Complaints in Peak Season

A new type of malicious complaint has emerged in cross-border e-commerce: registering domain names and then posing as the brand owner to extort sellers. It is recommended to register trademarks, file records, purchase domain names to build websites, and mark copyrights for prevention. If faced with malicious complaints, sellers can file a countersuit and provide evidence to protect their rights. This includes demonstrating legitimate sourcing and usage of the brand. Proactive measures and diligent record-keeping are crucial for mitigating the risk of such scams and protecting brand reputation.
Ecommerce Firms Face Rising Malicious Complaints in Peak Season

As peak season approaches, many e-commerce sellers are preparing for increased sales. However, a new malicious complaint scheme has emerged in the cross-border e-commerce community, specifically targeting sellers who haven't registered their brand domains.

The "Wolf in Sheep's Clothing" Scam Exposed

Fraudsters are lurking on Amazon, searching for successful stores with strong sales performance. After identifying targets that haven't registered their brand domains, they quickly register the corresponding domains and create simple imitation websites, copying the product information from the target stores.

Then, posing as "brand owners," they file complaints with Amazon, falsely accusing legitimate sellers of infringing on their brand rights. Their ultimate goal isn't to protect any legitimate rights, but rather to extort high "compensation" payments from sellers, threatening continuous complaints if their demands aren't met.

This fraudulent activity not only disrupts market order but also causes significant losses to hardworking sellers. So how can legitimate businesses protect themselves from these malicious complaints and prevent peak season sales from being disrupted?

Preventive Measures: Three Key Strategies

Being proactive is better than reactive. Sellers should implement these protective measures to eliminate opportunities for fraudsters:

  • Register trademarks and complete brand filing immediately: This fundamental step provides legal protection. Displaying your unique logo prominently on product packaging enhances brand recognition while deterring potential fraud.
  • Secure your domain name: Register domains matching your trademark and build a brand website, synchronizing products from your Amazon store. This improves brand image and provides evidence of legitimate ownership if facing malicious complaints.
  • Maintain strong copyright awareness: Clearly mark copyright information on product images and ensure the copyright holder matches your store entity. This prevents others from stealing your images and using them as grounds for complaints.

Fighting Back: How to Regain Selling Privileges

If you've already fallen victim to malicious complaints resulting in listing removal, don't panic. Sellers with registered trademarks can implement these countermeasures:

  • File a counter-complaint: Report the fraudulent website for trademark infringement. Provide evidence including:
    • Valid trademark registration certificates
    • Links to active product listings (if still available)
    • Screenshots of ASIN creation dates and sales records proving prior use
  • Present conclusive evidence: After gathering sufficient proof, submit an appeal to Amazon demonstrating the fraudulent nature of the complaint and provide evidence of the imitation website being taken down. Amazon will determine the legitimate brand owner based on the evidence and restore selling privileges accordingly.

Important Considerations: International Trademark Protection

One frequently overlooked detail involves checking whether your brand's trademarks have been preemptively registered in countries where you sell. If trademark squatting is discovered, immediately consult intellectual property attorneys to initiate legal proceedings to invalidate these registrations and protect your brand interests.

The cross-border e-commerce landscape presents both opportunities and risks. Maintaining vigilance and thorough preparation remains essential for success in this competitive market.