In response to pleas by Amway, Modicare and Oriflame, India’s Delhi High Court has restrained e-commerce companies such as Amazon, Flipkart and Snapdeal from selling the products of these direct sellers without their consent in India. The three direct sellers reported that their branded products were not only being sold at cheaper rates on the e-commerce platforms resulting in financial loss, but may have been tampered with or counterfeited. Further inspection of products on order of the court did find labeling, codes and manufacturing dates to have been changed, and the court stated the obligation of the companies to maintain security and quality standards of products and sellers. Justice Pratibha M Singhalso reiterated that the platforms had failed in adherence to their own policies of conduct.
Amway’s parent company, Alticor, has initiated a federal lawsuit against two individuals it claims are selling counterfeit or defective products using the Amway brand on the Amazon platform. Filed in June, the lawsuit accuses Hwa Deok Park and Sang Park, residents of New York City, of selling “numerous products” through their Amazon storefront that are damaged, tampered with, used or of poor quality. Amway alleges that this has caused the company “significant monetary harm” from loss of sales as well as injury to its reputation as a quality brand. In addition, the lawsuit states that Amway has sent cease and desist letters to both Parks, but the individuals have continued to change the name of their Amazon storefront to avoid detection.