Justitia DAO LLC sues to compel AAA to arbitrate its $23M dispute with Amazon after AAA refused to appoint an arbitrator.
SEATTLE, WA, UNITED STATES, August 15, 2024 /EINPresswire.com/ — Justitia DAO LLC, a decentralized autonomous organization based in Wyoming, has filed a formal complaint in the United States District Court for the Western District of Washington, case number 2:24-cv-01231, relating to the funds seized from approximately 2300 members by Amazon. The action comes after the American Arbitration Association (AAA) refused to appoint an arbitrator to hear Justitia’s claims against Amazon, despite contractual obligations outlined in Amazon’s Business Solutions Agreement (BSA).
The case stems from Amazon’s alleged abuse of its dominant market position to unilaterally seize funds owed to third-party sellers under the guise of enforcing provisions within the BSA. These provisions, specifically Section 2, allow Amazon to withhold or appropriate funds paid by customers to sellers at Amazon’s sole discretion. Justitia claims that this section has been exploited by Amazon to unjustly take approximately $23 million from its members, who are all former third-party sellers on Amazon’s platform.
The complaint alleges that Amazon, upon facing the threat of accountability for these actions on a large scale, persuaded AAA to reject Justitia’s demand for arbitration without appointing an arbitrator. This, according to Justitia, contradicts both the terms of the BSA and the AAA’s own rules, which typically require that disputes over arbitrability be decided by an arbitrator.
The complaint, filed under the Federal Arbitration Act, seeks a court order compelling AAA to appoint an arbitrator to adjudicate the claims Justitia has brought forward against Amazon. Justitia’s legal team asserts that without the intervention of the Court, Justitia will be denied the opportunity to have its claims heard, either in arbitration or in court, effectively closing off any avenue for justice.
“This case is a critical moment in the ongoing struggle between small businesses and massive e-commerce platforms that dominate the online marketplace,” said Brandi Balanda, lead counsel for Justitia DAO LLC.
In addition to Justitia DAO LLC’s action and others across the country, the FTC has an ongoing antitrust lawsuit against Amazon, and a £2.5 billion damages claim has been brought against Amazon in the UK for exploiting transaction data from third-party sellers, among other anticompetitive practices. China houses most international sellers on Amazon, but the local government has not yet launched any formal investigations into Amazon’s monopoly power and its impact on local sellers yet. Individual cases have sprouted in various areas, including Hunan, Liaoning and Guangdong.
Justitia DAO LLC is represented by Fennemore Craig P.C. in Seattle, WA, and Cross-Border Counselor LLP in Los Angeles, CA.
About Justitia DAO LLC – Justitia DAO LLC is a decentralized autonomous organization organized under the laws of Wyoming. Its members include former third-party sellers on Amazon who have assigned their legal claims against Amazon to the organization.
Brandi Balanda
Fennemore Craig, P.C.
+1 206-749-0500
bbalanda@fennemorelaw.com
