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 This opinion is not binding precedent, but I think courts worldwide should use it as a template for AI agency powers.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).
  • Isn’t this just like Doordash though? I’m not sure how these were resolved though.

    In May 2021, DoorDash was criticized for unauthorized listings of restaurants who had not given permission to appear on the app.[72] The company was sued by Lona’s Lil Eats in St. Louis, with the lawsuit claiming that DoorDash had listed them without permission, then prevented any orders to the restaurant from going through and redirecting customers to other restaurants instead, because Lona’s was “too far away,” when in reality it had not paid DoorDash a fee for listing.[73] This aspect of DoorDash’s business practice is illegal in California.[73]

    en.wikipedia.org/wiki/DoorDash#Litigation_for_ill…

    DoorDash - Wikipedia

    That’s a different thing. In that case, Doordash actually blocked people from ordering from the restaurant in question and actually redirected them elsewhere. Had the restaurant been listed and all it did was cause a Doordash employee to appear at the restaurant, place an order on the users behalf, then go deliver it, it would be a similar case to this one.

    Restaurants absolutely did and do have a problem with that, and I question the authority with which you state that there are no appreciable monetary damages from amazon denying a small business additional sales opportunities.

    cpr.org/…/restaurants-are-fed-up-with-grubhub-doo…

    Restaurants Are Fed Up With GrubHub And DoorDash, And Now Legislators Are On Their Side

    Restaurant owners say that unauthorized deliveries are ruining their reputations.

    Colorado Public Radio
    If you think you can find a way to quantify damages in a legally sufficient way then go ahead.