A major online retailer in the Lakewood area has taken legal action after its Amazon seller account was threatened with suspension over allegations of counterfeit sales. UnbeatableSale.com, Inc. (UBS), a New Jersey-based e-commerce business, has filed a lawsuit against ICC, a manufacturer of structured cabling solutions, for defamation and tortious interference, FAA News has learned.
Represented by attorney Todd Schwartz, UBS alleges that ICC wrongfully reported its product listings as counterfeit, leading to a policy violation notice from Amazon that jeopardizes its seller account. The lawsuit, filed in New Jersey Superior Court in Ocean County, contends that UBS is an authorized reseller of ICC products, purchasing inventory from a legitimate third-party distributor, Jenne, Inc.
“Defendant’s baseless complaint to Amazon threatens to place Plaintiff’s Amazon account in jeopardy of deactivation,” the lawsuit states.
UBS argues that under the "first sale doctrine," it has the legal right to resell ICC products. The company claims ICC's complaint is not only false but has the potential to cause devastating financial harm.
For many Amazon sellers in Lakewood, this lawsuit hits close to home. In recent months, several local sellers have reported receiving similar notices from Amazon, often due to manufacturers challenging their listings. Since Amazon enforces strict intellectual property policies, even a single claim can lead to an account suspension - a potentially catastrophic blow for online businesses.
UBS, which conducts a significant portion of its business through Amazon, asserts that ICC’s actions constitute defamation and intentional interference with its contractual relationship with Amazon. The company is seeking monetary damages and a jury trial.
This case is likely to be closely watched by e-commerce businesses, particularly third-party resellers who rely on platforms like Amazon for their livelihood. If UBS prevails, it could set an important precedent for sellers who have been impacted by what they see as overreach from manufacturers using Amazon’s policies to restrict competition.
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