Small business owners say Amazon is selling their products without permission

https://sh.itjust.works/post/54786747

Small business owners say Amazon is selling their products without permission - sh.itjust.works

“I typed in YamzWorld into the Amazon app and lo and behold there were all my products there with my pictures from my website as well,” Montes-Tarazas said. While he receives payment for sales, Montes-Tarazas said the arrangement strips away his ability to build direct customer relationships. “I do get the sale and I do get the money, but customers never get to interact with my website, they have no ability to sign up for my mailing list. They have no idea who I am as an artist or what I stand for,” Montes-Tarazas said.

Could he not put terms of use on his website prohibiting the use by AI agents, and sue Amazon if they don’t comply?

Weird clauses in terms of use are frequently just toilet paper when it actually comes down to enforcing them in court. You can “sue” but you might just win $1 because the judge would find that you have not suffered any monetary damages. You got paid for the item, after all, and “building a relationship with your customers” has no quantifiable and measurable value which can be proven in court, so judges default to one dollar.

There is also the aspect of whether an AI agent has the legal capacity to contract on behalf of Amazon or the buyer, and on whose behalf they contract if they do. I’m not aware of any American cases which have held that AI agents are “agents” (an entity with the legal power to act on behalf of another) within the meaning given to that word under the law of agency. The Civil Resolution Tribunal in British Columbia, Canada, ruled in Moffat v. Air Canada that AI chatbots can bind the organisation who uses them and makes them available to customers. This opinion is not binding precedent, but I think courts worldwide should use it as a template for AI agency powers. If the AI has no power to contract, then the sale is void in its entirety.

I believe Amazon would argue three points:

  • That the AI agent has power to contract, but that the “user” of the AI is the shopper, and Amazon is merely providing the agent for the shopper to use.
  • That if the clause banning AI agents from buying is enforceable, it voids the transaction in its entirety, and thus the seller owes Amazon a refund.
  • That even if the AI had the power to bind Amazon, that the ability to build direct customer relationships has no proven dollar value and thus damages should be limited to nominal amounts (i.e. one dollar).
  • Interesting! I can’t imagine Amazon would want to argue #2, though, since it seems like that would completely undercut their ability to use AI agents in this way.

    I hadn’t really thought about the implications of the ability of an AI agent to contract, though. That seems like really murky (and intriguing) territory; whether they can or cant, either way would have a lot of interesting implications.

    It is a conditional argument. It is vacuous if the court rules that the AI is an agent that can bind a principal. If and only if the court rules that the AI agent can’t contract on behalf of a principal (for the purchase of goods or otherwise), then Amazon should get a refund.