CAN YOU SUE SHOPEE AND LAZADA?

CAN YOU SUE SHOPEE / LAZADA if you found that there are sellers selling your products at lower price?

Short answer is No.



Case reference: AM BEAUTY WELLNESS v SHOPEE MOBILE MALAYSIA (BERNIAGA SEBAGAI SHOPEE MALAYSIA)


Facts:

AM discovered that there were many listings of AM's products in Shopee platform, without the knowledge/consent of AM. The products were bearing AM's registered trademark and selling at a cheaper price in Shopee platform. AM owned the exclusive marketing right to the product vide membership plan.

AM then lodged a complaint to Shopee in its website. However, Shopee declined to disclose the details of its sellers who were selling the products similar to AM's products. AM applied for an injunction to stop Shopee to prevent the sale of products and to remove all listings of products bearing the AM brand.


The court dismissed AM's application for injunction.

1) Based on the Shopee's nature of business, Shopee was not the seller. Shopee was merely providing the platform.

2) Shopee had no knowledge of the arrangement between AM and the third party sellers. If an action was brought, whether for breach of contract or otherwise, the correct party to sue would be the third party sellers, not Shopee.

3) AM's claim was monetary in nature and its complaint was that it was suffering loss of profits as there were products that were being sold at a lower price range on the Shopee marketplace. Therefore, damages were an adequate remedy. The balance of convenience was in favour of not granting an injunction.


#ecommerce

#intellectualproperty

#business

#competitionlaw

Location: Malaysia

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