Manufacturer Sues Unauthorized Amazon Seller for Misrepresenting Brands

Stratton AV and Hatchfields falsely advertise themselves as an authorized JVC and Kenwood dealer and offer for sale to consumers JVCKenwood USA (JKUSA) products via the Hatchfields seller account on Amazon, alleged a fraud complaint Wednesday (docket 1:24-cv-21967) in U.S. District Court for Southern Florida in Miami.

The defendants aren't JKUSA authorized dealers, but they hold themselves out to consumers that they are, offering for sale various JVC and Kenwood products “they do not actually have in their inventory and could not actually obtain to sell to consumers,” the complaint said. Some products the defendants offer for sale are restricted SKUs sold only to JKUSA’s authorized dealers, and others are products that JKUSA no longer manufactures, it said.

Consumers who place orders for JVC and Kenwood products from Hatchfields “expect the order to be fulfilled and are confused and disappointed when the order never arrives or is cancelled," or when they receive a product that’s different from what they ordered, the complaint said.

On April 21, a customer purchased a JVC-branded DLA-NZ8 projector from a Hatchfields listing purporting to be able to fulfill the order, said the complaint. The customer has not received the projector and called JKUSA to verify the purchase, “likely confused” how a seller that's not a JKUSA authorized dealer could sell one of its products, the complaint said.

When consumers search for a JVC or Kenwood product on Amazon, Hatchfields’ product listings are generated showing lower prices than those of authorized dealers, said the complaint. The defendants present themselves as authorized JKUSA dealers by, “among other methods, incorporating JKUSA’s logos” and its product descriptions in its ads and product listings on the Hatchfields seller account, alleged the complaint. The defendants’ price cutting and appearance as an authorized dealer “are diverting consumers away from JKUSA,” alleged the complaint.

Verified consumer reviews on the Hatchfields Amazon seller account confirm that consumers are “actually deceived and disappointed” by the defendants’ “deceptive misconduct,” the complaint said. Because consumers are charged for the JKUSA products ordered at the time of purchase, they have to pursue the defendants, or Amazon, to obtain a refund “when it becomes clear that the product they ordered will not be fulfilled,” it said.

The defendants also “inflate their credibility” through fraudulent positive reviews on Amazon, alleged the complaint. A reviewer called T.A. gave Hatchfields 12 “nearly identical five-star reviews” on Amazon Aug. 11 and a week later, 13 nearly identical five-star reviews, it said. On Aug. 29, T.A. gave the seller 47 nearly identical five-star reviews, it said.

Hatchfields lists JVC and Kenwood products that are no longer manufactured and that JKUSA no longer sells to consumers, said the complaint. The account misleads consumers by not telling them that the product has been discontinued or that the one being sold is a “refurbished item” not protected by JKUSA’s warranty or return policy, it alleged. Some customers receive a product other than what they ordered, it said.

The plaintiff contacted the defendants regarding the “improper advertisement and offering for sale of its products, and a representative for the defendants responded: “Good luck on your goose chase,” alleged the complaint. The defendants’ conduct has produced and will continue to produce “a likelihood of consumer confusion and deception, to the irreparable injury of JKUSA,” it said.

JKUSA is injured in the form of "significant lost sales" it suffers as a "direct and proximate result” of the defendants’ misconduct, the complaint said. Due to the sellers’ actions, JKUSA is also suffering “a loss of the enormous goodwill” it has created in its brand, and it is losing profits from lost sales, alleged the complaint. The company seeks preliminary and permanent injunctive relief and damages for the defendants’ “false advertising and unfair competition.”

JKUSA asserts claims of false advertising and unfair competition and seeks temporary, preliminary and permanent injunctive relief barring the defendants from falsely advertising its products and engaging in any unfair competition with the company. It seeks orders requiring the defendants to “correct any erroneous impression consumers may have derived” regarding the qualities of JVC and Kenwood products and to delete positive reviews not legitimately obtained. It also seeks damages, attorneys’ fees, and pre- and post-judgment interest.