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Amazon Was Tricked By a Fake Law Firm Into Removing a Popular Product, Costing the Seller $200,000 (cnbc.com)

Eugene Kim, reporting for CNBC: Shortly before Amazon Prime Day in July, the owner of the Brushes4Less store on Amazon's marketplace received a suspension notice for his best-selling product, a toothbrush head replacement. The email that landed in his inbox said the product was being delisted from the site because of an intellectual property violation. In order to resolve the matter and get the product reinstated, the owner would have to contact the law firm that filed the complaint. But there was one problem: the firm didn't exist. Brushes4Less was given the contact information for an entity named Wesley & McCain in Pittsburgh. The website wesleymccain.com has profiles for five lawyers. A Google image search shows that all five actually work for the law firm Brydon, Swearengen & England in Jefferson City, Missouri. The phone number for Wesley & McCain doesn't work while the address belongs to a firm in Pittsburgh called Robb Leonard Mulvihill. The person who supposedly filed the complaint is not registered to practice law in Pennsylvania. One section on Wesley & McCain's site stole language from the website of the Colby Law Office. The owner of Brushes4Less agreed to tell his story to CNBC but asked that we not use his name out of concern for his privacy. As far as he can tell, and based on what CNBC could confirm, Amazon was duped into shutting down the seller's key product days before the site's busiest shopping event ever.

29 of 98 comments (clear)

  1. And whose fault is that? by Anonymous Coward · · Score: 5, Insightful

    Five bucks says Amazon won't compensate the seller for the loss of revenue. But you better believe that if one of Amazon's suppliers did this to Amazon, there'd be lawsuits galore.

    1. Re:And whose fault is that? by UsuallyReasonable · · Score: 5, Insightful

      I'm not quite sure how stupid you are from your post, so let me pitch this pretty low. If this is one of the busiest times of the year, and the guy didn't make his sales, then he lost a significant percentage of his expected annual revenue and profit, even if you don't happen to be impressed by the numbers. Maybe for you being out $10,000 is something you just worry about after you get done with your manicure, but maybe for this guy it's 25% of what he expected to make in 2017. You might consider commenting on things where you actually know what's going on, instead of ones where you obviously don't.

  2. There needs to be an DMCA review with fines payed by Joe_Dragon · · Score: 5, Insightful

    There needs to be an ip / DMCA / trade marks / etc review with fines payed out for BS link this or just can only be taken down by court order.

  3. sue for fraud 800K + legal fees seems about right. by Joe_Dragon · · Score: 4, Insightful

    sue for fraud 800K + legal fees seems about right.

  4. Why didn't Amazon vette the source? by Anonymous Coward · · Score: 3, Insightful

    I want to know why Amazon just passed this along without vetting the law firm out? Doesn't anyone do something as simple as making a phone call, checking if the law firm is even licensed? All this is easy enough to obtain. Especially when your being ask to revoke a customers product.

    1. Re:Why didn't Amazon vette the source? by Archangel+Michael · · Score: 2

      It should be simple.

      ----

      To issue a complain to remove any item offered by Amazon or any of its resellers, you must first register with Amazon and have your registration verified prior to issuing any takedown request. If you fail to register, your complaint will be ignored. This process is required to protect our partners from malicious / anonymous take down notices.

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    2. Re:Why didn't Amazon vette the source? by Anonymous Coward · · Score: 2, Insightful

      Only hundreds? I work for an online retail company with about 160 employees, and we received around fourteen thousand legal notices last year. Most were fake DMCA violations claiming they owned the pictures we took of our products. Some were fake patent claims. A few were patent trolls like Intellectual Ventures. They targeted us since we're in the same building in Eastgate Bellevue, WA, and we called the police on them a couple of times when their drunk employees were vomiting on the sidewalk multiple times. Also, a bunch of false trademark claims.

      My wife works at Amazon, and she says they have 360,000 employees. Assuming the number of fake claims scales linearly with the number of employees, that means they should get about 31.5 million legal notices a year. They might even get more than that since they're a much richer target.

  5. amazon will pay or do hard time this may criminal by Joe_Dragon · · Score: 2

    amazon will pay or do hard time this may be at least in part an criminal case.

  6. Re:Bitter by admiralh · · Score: 5, Interesting

    1) The person who created the fake web site/law firm/etc. and perpetrated the fraud.

    2) Amazon, since they did not do due diligence and ensure that the complaint was legit. And if there original fraudster (see 1) cannot be found, that even makes Amazon's due diligence look even worse.

    --
    Hopelessly pedantic since 1963.
  7. Re:sue for fraud 800K + legal fees seems about rig by PPH · · Score: 3, Interesting

    Turn the case over to the (state) licensing authority with jurisdiction. Practicing law without a license. Possible criminal penalties.

    --
    Have gnu, will travel.
  8. Amazon should pay them a settlement by gurps_npc · · Score: 4, Insightful

    Amazon did not do reasonable due diligence and was the party tricked by the fraud, they should be the one to pay a penalty.

    This on top of fraud complaints made against whoever did the fraud in the first part.

    --
    excitingthingstodo.blogspot.com
  9. Swearengen by Dancindan84 · · Score: 4, Funny

    all five actually work for the law firm Brydon, Swearengen & England in Jefferson City, Missouri.

    Cocksuckers!

    --
    "Always forgive your enemies; nothing annoys them so much." - Oscar Wilde
  10. Sue who? by Solandri · · Score: 5, Interesting

    It looks like the person(s) who filed the complaint created a fake law firm site using info stolen from a real law firm's site. It wasn't good enough to pass a 5 minute sniff test, but apparently was good enough to pass Amazon's 1-click non-test. Likely the person(s) filed the fake complaint (and set up the fake website) using an anonymous email account.

    The onus in these cases has to be on Amazon to expend the resources to properly vet these claims before acting on them. If there were viable competition between marketplaces, this wouldn't be a problem. Sellers would abandon the flaky/lazy marketplace and move to ones which treated them better. But Amazon dominates online sales, much like eBay dominates online auctions.

    This is the whole reason we revolted against walled garden online services (AOL, Prodigy, GEnie, MSN) in the 1990s in favor of the open Internet. Having a handful of companies acting as gatekeepers just presents too much opportunity for abuse. When Amazon first started, I was hoping multiple online retailers like it would blossom and we'd rely on price search engines (like Pricegrabber) to invite competition between all online retailers. Unfortunately that hasn't really happened, and if anything the public seems to be gravitating back towards the walled gardens (iOS iTunes, Google Play on Android).

    1. Re:Sue who? by Anubis+IV · · Score: 3, Informative

      The onus in these cases should be on Amazon to expend the resources to properly vet these claims before acting on them.

      FTFY, but the problem is that the DMCA doesn't work that way (though I wish it did).

      In fact, it's been structured to incentivize Amazon to NOT expend any resources at all, since doing so may open them up to legal liability. Under the terms of the DMCA, service providers like Amazon enjoy a limited immunity against being held liable for copyright infringement on their service that took place at the direction of their users. In order to maintain their safe harbor status, service providers are required to act "expeditiously" to remove allegedly infringing content in response to a takedown notice. I.e. The DMCA presumes the recipient of a takedown notice is guilty and is structured such that it places the burden of proof nearly entirely on them.

      Vetting the claim has the potential to open Amazon up to liability for their users' misdeeds, since either taking too long to vet or outright denying the claim would mean that they failed to act expeditiously. Google has given up their safe harbor status on a few occasions to defend users who were CLEARLY in the right, but that sort of thing is the exception, not the rule, and no service provider can currently be reasonably expected to do otherwise in all cases.

    2. Re:Sue who? by Anubis+IV · · Score: 2

      Admittedly, it wasn't specified which form of IP they were dealing with, so it could have been trademark or patent, I suppose. Other comments revolved around the DMCA and copyright on account of their prominent role in these sorts of situations, and I apparently allowed myself to be sucked into framing the entire discussion in those terms. Thanks for calling me on that.

    3. Re: Sue who? by nasch · · Score: 2

      I insist you cease being so reasonable and gracious. This is the internet!

    4. Re: Sue who? by Anubis+IV · · Score: 3, Funny

      My apologies. What I had intended to baselessly assert was that you're a no-good Commie intent on the destruction of our wholesome, American values. After all, every decent American hates the DMCA, so it's clearly responsible for the evils being perpetuated here. The fact that you would dare imply otherwise suggests you're the sort of treasonous person who enjoys clubbing baby seals between attending Nazi rallies and crafting your next astroturf post against net neutrality.

      A pox on you and your kind, good sir!

  11. Re: There needs to be an DMCA review with fines pa by LocalH · · Score: 3, Funny

    >Anonymous Coward
    >I guess what we really need is a non-anonymous internet

    gud1

    --
    FC Closer
  12. Re:amazon will pay or do hard time this may crimin by nedlohs · · Score: 3, Interesting

    You really think they don't have a "we can stop selling your product for any reason we want whenever we want without notice" clause in whatever their contract with market place sellers is?

  13. I'd be surprised if takes until Monday by sandbagger · · Score: 4, Insightful

    >No one knows who filed this claim - all the identities cited are faked or stolen.

    No-one knows yet. The identities are fraudulent but the motives are not. Someone did this to hurt them, not just play rough and tumble capitalism. I'd start by asking the owners a few questions:

    1) Do you have any particularly disgruntled ex-employees?
    2) Is there a competitor who has been particularly aggressive?
    3) Did anyone on the executive get divorced recently?

    This probably was not done by someone on the other side of the Earth who never heard of the product. It was done by someone who knew them and wanted them hit when they were vulnerable. That's going to be a very short list.

    I'd imagine that Amazon's fraud department has a bunch of interns data mining to see if they can't help narrow that list even further because right now they need to demonstrate good will. You can also bet that the defamed law firm will not be letting this slide.

    Of course, proving this in court may be another matter but it may never need to get to that. The suspect may go bankrupt in pretrial.

    --
    ---- The above post was generated by the Turing Institute. Maybe.
  14. Re:There needs to be an DMCA review with fines pay by Anubis+IV · · Score: 5, Interesting

    Instead of a fine, which is difficult to collect in the case of a fictitious entity, what about requiring a bond?

    We already see bonds being used in legal disputes over intellectual property. For instance, if Apple sues Samsung and asks the court for an injunction against the sale of Samsung products, Apple will be forced to put up a bond. If it later turns out that Samsung was in the right all along, that bond will be used to compensate Samsung for the sales lost during the injunction.

    Given that a DMCA takedown acts as an injunction, why not require that anyone filing a DMCA takedown request provide proof that they are bonded? If it later turns out that they perjured themselves, filed a false claim, or otherwise abused the system, the victim of the takedown notice won't have to hunt down the abuser to receive compensation. Instead, they can simply go to the surety company to collect their compensation, just like you would with a bonded contractor.

    This also has the benefit of slowing down or at least discouraging any given company's ability to abuse the system. After all, if they maintain the minimum bond allowed and it was just paid out to a victim, they won't be able to use it to secure a future takedown notice until they pay it back, effectively preventing them from filing any more takedown notices. And if they keep a bond for more than the minimum, they'll potentially be out quite a bit of money if they start abusing the system.

    Unfortunately, I have no idea how to get around the biggest problem with this idea: if the minimum bond is too large, say, $100K, normal people wouldn't be able to protect their work since they couldn't afford the minimum bond, while if the minimum bond was too small, say, $10, it wouldn't be useful in the least in compensating victims for their loss. Maybe there's a way around it, but I haven't figured out a way to make it both fair to big companies and Joe Schmoes while still discouraging abusers in the few minutes it took to type this comment.

  15. Re:sue for fraud 800K + legal fees seems about rig by HornWumpus · · Score: 5, Insightful

    You've obviously never tried to get any cop to help you with any property crime.

    They will give you a police report, for your insurance. That's all. You can have 'them' on video, the cops won't care. With the narrow exceptions of perps that have already pissed the cops off or perps who are cops (the second is 'danger Will Robinson' for you). If the video is good enough perhaps the local news will use it to get some ratings. You're on your own.

    --
    John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
  16. Sue John Doe by SeattleLawGuy · · Score: 2

    Sue John Doe and the firm that hired him. Also make police reports to various agencies.

    They used a Godaddy account and Microsoft hosting. You think there isn't a money trail or a log of connections to the host? Some two-bit fraudster thought this was a good idea. You've got a pretty good chance that they made mistakes.

    --
    Real lawyers write in C++
  17. Re:Bitter by Alain+Williams · · Score: 2

    Brushes4Less looses out big time, so who wins ? Did some other toothbrush manufacturer sell more stuff as a result ? Following the money might be a good way of finding who ultimately was responsible — assuming that it was not just some random act of vandalism.

    Amazon is best placed to see where sales went, it will be interesting to see if they can be bothered.

  18. Re:There needs to be an DMCA review with fines pay by Anubis+IV · · Score: 2

    ...which I specifically mentioned as a problem that I didn't know how to get around.

  19. Re:Bitter by Anonymous Coward · · Score: 3, Insightful

    In order to sue Amazon for anything worthwhile, you'd have to be able to persuade a court that your losses were significant. To do that, you'd have to build up a reasonable business base to begin with.

    At that point, "torpedoing your own business" becomes a significantly less attractive proposition.

    Of course, if you've done your sums and figured out that your business is actually making a loss... this might be a way out. But it's a hard slog to get to that point, and even harder to realize and admit it to yourself when you do.

  20. Apathy by DivineKnight · · Score: 2

    And thus the end of the human race came not with a roar, nor applause, nor whining, nor crying, nor even silence, but with the air heavy with apathy.

  21. Re:There needs to be an DMCA review with fines pay by Anubis+IV · · Score: 2

    That could work. Right now, service providers like YouTube have to "expeditiously" remove infringing content if they want to maintain their safe harbor status that keeps them from being held liable for that content. But if we removed that requirement for takedowns that aren't bonded, it'd give hosts a means to vet the claims that are more likely to be abusive, while also incentivizing the big players to play nice.

  22. Re:There needs to be an DMCA review with fines pay by Vektuz · · Score: 2

    This would work in a world where the laws were being made to actually protect folks instead of better the interest of those paying for the laws.

    But we don't live there.