Marketplace Account Suspension Demand Letters

Upwork, Amazon, eBay, Etsy, Fiverr & Platform Account Disputes

Marketplace Suspension Overview
🚫 Account Suspension Basics: Online marketplaces (Upwork, Amazon, eBay, Etsy, Fiverr, etc.) suspend or terminate user accounts for TOS violations, fraud concerns, or automated flags. Suspended accounts lose access to earnings, reputation, and platform access.
Common Suspension Triggers
Platform Common Triggers Typical Penalty
Upwork Suspicious activity, off-platform payments, low Job Success Score, ToS violation Temporary suspension or permanent ban; funds held 90-180 days
Amazon Seller High order defect rate, counterfeit complaints, account health below threshold, linked accounts Suspension + inventory hold; must submit Plan of Action
eBay Non-shipment, counterfeit items, selling restrictions violations, linked to suspended account Account restriction or indefinite suspension
Etsy Reselling (not handmade), copyright infringement, fee evasion, manipulation Permanent deactivation; payment reserve for 180 days
Fiverr TOS violation, off-platform contact, quality complaints, multiple accounts Warning, temporary suspension, or permanent ban
Legal Framework
  • Terms of Service: Platforms reserve broad right to suspend/terminate "at any time for any reason"
  • Arbitration clauses: Most platforms require binding arbitration; class action waivers common
  • Section 230: Platforms generally immune from liability for user-generated content (47 U.S.C. §230)
  • Independent contractor status: Users not employees; limited employment law protections
  • Contract claims: Breach of contract, breach of implied covenant of good faith and fair dealing
  • State law: Conversion (withheld funds), unfair competition (California), tortious interference
Financial Impact
Lost Asset Impact
Withheld earnings Platforms hold funds for 30-180 days; can be $500-$100k+ for high-volume sellers/freelancers
Account reputation Years of reviews, ratings, sales history lost; cannot be transferred to new account
Customer relationships Lose contact with buyers/clients; no way to notify of suspension or alternative contact
Inventory (Amazon) FBA inventory held; removal fees charged; perishable items may be destroyed
Future platform access Permanent ban; linked accounts suspended; blacklisted from reapplication
⚠️ Urgent Response Critical: Most platforms give 7-30 days to appeal or submit Plan of Action. Missing deadline results in permanent ban and extended fund hold. Review suspension notice immediately and gather evidence fast.
For Suspended Users - Fighting Suspension
Immediate Response Steps
🚨 First 48 Hours: Download all account data immediately (transaction history, messages, reviews, financial records). Once permanently banned, you may lose access to download records. Preserve everything while you still have limited access.
  • Read suspension notice: Identify exact reason stated (vague "TOS violation" vs. specific claim)
  • Preserve evidence: Download messages, orders, reviews, payment records, inventory reports
  • Review TOS: Understand what you allegedly violated
  • Identify funds at risk: How much is pending/held? What is stated release timeline?
  • Check linked accounts: Platforms may suspend related accounts (same owner, household, business)
  • File internal appeal ASAP: Most platforms require exhaustion of internal appeals before legal action
Platform-Specific Appeal Procedures

Upwork:

  • Respond via ticket system or email support directly
  • Provide evidence of legitimate work, client communications, deliverables
  • If "off-platform payment" allegation: explain any mentioned external tools (GitHub, video calls, etc.)
  • Escalation: Request supervisor review; cite ToS sections showing compliance

Amazon Seller Central:

  • Submit "Plan of Action" (POA) addressing: root cause, corrective actions, preventive measures
  • Be specific: admit any legitimate issues, explain what you fixed
  • Provide invoices, supplier info, product authenticity proof if counterfeit claim
  • Address all performance metrics cited (ODR, late shipment rate, etc.)
  • If denied: Revise POA and resubmit (can take 3-5 iterations)

eBay:

  • Call eBay suspension department (automated appeals often fail)
  • Provide evidence: tracking numbers, supplier invoices, authenticity certificates
  • If "linked account" suspension: prove no connection or that linked account was legitimately separate business
  • Request MC011 restriction review if applicable

Etsy:

  • Email integrity@etsy.com with appeal
  • If copyright claim: File DMCA counter-notice if you believe claim is false
  • If "reselling" allegation: Prove you made/designed items (process photos, materials receipts)
  • Etsy appeals rarely succeed; focus on fund release if reinstatement denied

Fiverr:

  • Submit ticket through support center
  • If quality complaints: Show client satisfaction, completed work, reviews
  • If TOS violation: Clarify misunderstanding, commit to compliance
  • Escalation path limited; Fiverr rarely reverses permanent bans
Building Strong Appeal
Suspension Reason Evidence to Submit
Counterfeit / Authenticity Supplier invoices, manufacturer authorization letters, authenticity certificates, photos of products with labels/serial numbers
Performance metrics (late ship, ODR) Tracking data showing on-time delivery; customer service logs; process improvements implemented
Fraud / Suspicious activity Identity verification docs (ID, utility bill, business registration); explanation of account activity; client/customer testimonials
Off-platform payments (Upwork/Fiverr) Show all payments through platform; explain any external tool mentions (Zoom, GitHub, etc. for legitimate work)
Copyright / IP infringement DMCA counter-notice if false claim; license agreements if you have rights; redesign if legitimate issue
Linked account violation Prove separate businesses (different owners, addresses, tax IDs); or explain legitimate reason for connection
When Internal Appeals Fail

If platform denies appeal or doesn't respond within reasonable time:

  • Demand letter: Formal legal demand alleging breach of contract, bad faith, conversion of funds
  • Arbitration threat: Cite arbitration clause; state intent to file if not resolved
  • Focus on funds: Even if reinstatement unlikely, demand immediate release of withheld earnings
  • Regulatory complaints: File with FTC, state AG, BBB (limited impact but creates record)
  • Alternative platforms: Don't wait for resolution; establish presence on competing platforms immediately
⚠️ Reputational Loss: Even if you win appeal, months of suspension damage rankings and customer relationships. Parallel track: build alternative revenue while fighting suspension. Don't put all income on single platform.
Fund Release Timeline
  • Upwork: Typically releases funds after 90-180 days if no fraud claims pending
  • Amazon: Withholds funds pending resolution; may hold longer if authenticity/safety issues
  • eBay: Varies; may hold funds 30-90 days depending on claim type
  • Etsy: 180-day automatic hold; releases if no outstanding cases
  • Fiverr: Holds revenue for 14-30 days; extended if disputes pending
For Platforms - Suspension Policies & Defense
Legitimate Suspension Reasons

Platforms have valid business and legal reasons to suspend accounts:

  • Fraud prevention: Protect buyers/clients from scams, counterfeit products, non-delivery
  • Marketplace integrity: Enforce quality standards, authenticity requirements
  • Legal compliance: Remove prohibited items (illegal goods, IP infringement, regulated products)
  • Risk management: Suspend accounts linked to chargebacks, disputes, customer complaints
  • Platform reputation: Low-quality sellers/freelancers harm platform brand and user trust
Suspension Best Practices
Practice Why It Matters
Provide specific reasons Generic "TOS violation" invites legal challenge; cite exact policy violated
Allow appeal with evidence Reduces false positives; demonstrates good faith; strengthens legal defense
Human review for high-value accounts Automated suspensions of accounts with significant earnings/inventory invite litigation
Reasonable fund hold periods 30-90 days defensible; 180 days invites conversion claims unless justified by ongoing disputes
Clear reinstatement path Show what user must do to regain access (if possible); permanent bans for first offense invite challenge
Defending Suspension Decisions

When user challenges suspension via demand letter or arbitration:

  • Document specific violations: Screenshots, transaction data, customer complaints, policy violations
  • Show TOS compliance: Suspension followed stated policies; user had notice of rules
  • Demonstrate review: Human reviewed evidence (not purely automated); considered user's appeal
  • Justify fund hold: Ongoing disputes, chargeback exposure, refund claims justify holding funds
  • Cite Section 230: Platform not liable for third-party content (if relevant)
  • Arbitration advantage: Force expensive arbitration; user often lacks resources to pursue
Common Platform Defenses
  • Broad TOS language: "We may terminate at any time for any reason" = near-absolute discretion
  • Independent contractor relationship: Users not employees; no wrongful termination claim
  • Legitimate business reason: Suspension based on performance metrics, customer complaints, fraud indicators
  • No property right in account: User has no vested right to continue using platform
  • Reasonable fund hold: Withholding funds pending chargeback/dispute window is standard practice
Vulnerability Areas

Platforms face higher litigation risk when:

  • Automated suspensions without review: Algorithm-driven bans of high-value accounts
  • Vague or no explanation: Refusing to specify violation makes bad faith claim easier
  • Denying appeals without review: Auto-rejecting appeals without human examination
  • Extended fund holds without justification: 180+ day holds when no disputes/chargebacks pending
  • Linked account suspensions: Banning unrelated accounts based on tenuous connections (same IP, household)
  • Destroying inventory without notice: (Amazon) Disposing of FBA inventory without giving seller option to retrieve
💼 Settlement Considerations: For high-value accounts with strong legal claims, early settlement may be cheaper than arbitration defense. Offering partial fund release or expedited review can resolve dispute for fraction of legal costs.
Sample Demand Letters
Sample 1: Upwork Suspension Demand
[Your Name] [Address] [Email] [Date] Upwork Global Inc. Legal Department 2625 Augustine Drive, Suite 601 Santa Clara, CA 95054 Via Email: legal@upwork.com Re: Wrongful Account Suspension - Account [Your Username/ID] Dear Upwork: I am writing regarding Upwork's suspension of my freelancer account ([Username]) and withholding of $[Amount] in earned funds. SUSPENSION WITHOUT CAUSE: On [Date], Upwork suspended my account citing [reason stated: "suspicious activity" / "ToS violation" / "off-platform communication"]. This suspension is unjustified: 1. NO TOS VIOLATION: I have reviewed Upwork's Terms of Service and User Agreement. I have not violated any provision. Specifically: • All payments processed through Upwork platform (no off-platform payments) • All work performed per contract terms; clients can verify quality and delivery • [If off-platform tools mentioned:] Any references to external tools (Zoom, GitHub, Google Docs) were for legitimate work collaboration, not payment circumvention • [X] completed contracts with [Y]% positive feedback rating 2. VERIFIED ACCOUNT: I have passed Upwork's identity verification, submitted tax documentation (W-9/W-8), and maintained account in good standing for [X years/months]. 3. CLIENT SATISFACTION: All my clients can confirm work quality and professionalism. I have [number] five-star reviews and [Job Success Score]%. No client has filed complaint against me. WITHHELD EARNINGS: Upwork is holding $[Amount] in earned funds from completed contracts: • [List recent contracts with amounts if possible, e.g., "Client A: $X for web development project, completed [date]"] • [Continue for major contracts] These funds were earned through legitimate work, delivered to client satisfaction. Upwork has no legal basis to withhold them. UPWORK'S BREACH: Upwork's actions constitute: • Breach of contract: Suspension without cause violates User Agreement's implied covenant of good faith • Conversion: Wrongful withholding of my earned funds • Tortious interference: Upwork's suspension prevents me from completing ongoing contracts and harms client relationships DAMAGES: I have suffered: • $[Amount] in withheld earnings • $[Amount] in lost income (ongoing contracts cancelled by suspension) • Reputational harm (years of reviews and Job Success Score lost) • Loss of client relationships built over [X] years on platform DEMAND: I demand that Upwork immediately: 1. Reinstate my account with full access 2. Release all withheld funds ($[Amount]) 3. Restore my Job Success Score and account reputation 4. Provide written explanation with specific evidence supporting suspension (not vague "ToS violation") If Upwork maintains suspension is justified, provide: • Specific contracts or messages showing violation • Exact ToS provision violated • Evidence supporting "suspicious activity" claim DEADLINE: Please respond within 10 days. If Upwork does not reinstate account or release funds, I will: • File arbitration demand under Upwork User Agreement Section [X] • Seek damages for: withheld earnings + lost income + reputational harm • File regulatory complaints with California Attorney General and FTC • Pursue public advocacy (media, social platforms) regarding Upwork's suspension practices I have invested years building my Upwork reputation and client base. This suspension has destroyed my livelihood based on unsubstantiated allegations. I request fair review and immediate resolution. Sincerely, [Your Name] [Phone] [Email] Enclosures: • Transaction history showing all payments through Upwork • Client communications/testimonials • Work samples / deliverables • Identity verification documents
Sample 2: Amazon Seller Suspension - Attorney Demand
[Law Firm Name] [Address] [Phone / Email] [Date] Amazon.com Services LLC Legal Department 410 Terry Avenue North Seattle, WA 98109 Via Email: [seller-performance@amazon.com; legal@amazon.com] Via Certified Mail Re: Account Suspension - Seller Account [Seller Name / ID] Dear Amazon: I represent [Seller Business Name] regarding Amazon's suspension of their seller account and withholding of approximately $[Amount] in funds plus $[Amount] in FBA inventory. SUSPENSION BACKGROUND: On [Date], Amazon suspended my client's account citing [reason: "high ODR" / "counterfeit complaints" / "account health"]. Client submitted multiple Plans of Action, all denied with generic responses ("does not contain sufficient information"). SUSPENSION IS UNJUSTIFIED: 1. PERFORMANCE METRICS: Client's actual metrics: ODR [X]%, Late Shipment Rate [Y]%, Cancellation Rate [Z]%. [If within thresholds:] These are within Amazon's stated thresholds of <1% ODR, <4% LSR. [If metrics elevated due to specific issue:] The spike in [metric] resulted from [specific cause: supplier delay, shipping carrier issue, etc.], which has been fully resolved through [corrective actions]. 2. AUTHENTICITY: [If counterfeit claim:] Client sources all products from authorized distributors. Attached are: • Supplier invoices showing purchase from [Authorized Distributor Name] • Manufacturer authorization letter • Product photos showing authentic labels, packaging, serial numbers The "counterfeit" complaints appear to be [explain: competitor sabotage, customer misunderstanding, etc.]. 3. CORRECTIVE ACTIONS: Client has implemented: • [List improvements: new supplier vetting process, enhanced QC, improved shipping procedures] • Additional staff training on Amazon policies • Upgraded inventory management system WITHHELD ASSETS: Amazon is withholding: • $[Amount] in account balance (sales revenue from legitimate transactions) • FBA inventory valued at $[Amount] ([X] units across [Y] ASINs) Amazon's prolonged hold of these assets causes severe financial harm. Client cannot operate business without working capital and inventory. LEGAL CLAIMS: Amazon's actions constitute: • Breach of Contract: Business Solutions Agreement requires Amazon to act in good faith; suspension based on false counterfeit claims or incorrect metrics violates agreement • Conversion: Wrongful withholding of funds and inventory beyond reasonable period • Tortious Interference: Amazon's suspension interferes with client's supplier relationships and customer orders DEMAND: Amazon must: 1. Reinstate seller account immediately 2. Release all withheld funds 3. Return all FBA inventory (or allow client to create removal order without fees) 4. Remove counterfeit complaints if based on competitor false reports 5. Restore account health metrics ALTERNATIVE: If Amazon maintains suspension: 1. Release all funds immediately (not 90-day hold) 2. Return inventory at Amazon's expense 3. Provide detailed written findings explaining exact violations with supporting evidence 4. Allow client to address specific issues and reapply DEADLINE AND NEXT STEPS: Please respond within 14 days. If Amazon does not reinstate account or release assets, client will: • File arbitration demand under Business Solutions Agreement • Seek damages: withheld funds + inventory value + lost profits + business value destruction • File regulatory complaints (FTC, state AG) • Pursue media coverage of Amazon's suspension practices Client operated successfully on Amazon for [X years], generating $[Y] in annual sales and maintaining [Z] positive feedback. Suspension based on [false counterfeit claims / metric anomaly / unclear violations] destroys legitimate business without due process. We request immediate resolution. Sincerely, [Attorney Name] [Law Firm] Enclosures: • Plans of Action (previously submitted) • Supplier invoices and authorization letters • Performance metric data • Client financials showing business impact
Sample 3: Etsy Deactivation - Fund Release Demand
[Your Name / Business Name] [Address] [Email] [Date] Etsy, Inc. 117 Adams Street Brooklyn, NY 11201 Via Email: integrity@etsy.com; legal@etsy.com Re: Account Deactivation - Release of Funds - Shop Name [Your Shop Name] Dear Etsy: I am writing regarding Etsy's permanent deactivation of my shop ([Shop Name]) and 180-day hold on $[Amount] in sales revenue. DEACTIVATION DISPUTE: Etsy deactivated my shop on [Date] citing [reason: "reselling" / "copyright infringement" / "manipulation"]. I dispute this finding: [If "reselling":] All items in my shop are handmade by me. I have maintained detailed records of my creative process including: • Process photos showing fabrication/assembly • Materials purchase receipts • Design sketches / CAD files • [Attach evidence] [If copyright:] I am the original creator of [designs]. I have not infringed anyone's copyright. [If DMCA claim: The DMCA notice was filed by [competitor / person with no legitimate claim], and I filed counter-notice on [date].] FUND WITHHOLDING: Even if Etsy maintains deactivation decision, there is no justification for 180-day hold on funds: • No open cases or disputes with buyers • All orders shipped and delivered; buyers received products • No chargebacks or refund requests pending • Funds represent completed sales for delivered products Etsy's policy of automatic 180-day hold regardless of circumstances constitutes conversion. DEMAND: I demand Etsy immediately release all withheld funds ($[Amount]). If Etsy chooses to maintain 180-day hold, I will: • File arbitration under Etsy Terms of Use • Pursue conversion claim (wrongful withholding of funds) • File unfair business practice claim (Cal. Bus. & Prof. Code §17200 - Etsy is California-based) • Seek damages: withheld funds + interest + attorney fees + business loss SETTLEMENT PROPOSAL: To resolve without litigation: • Release funds within 14 days, OR • Release 50% immediately, hold remaining 50% for [reasonable period, e.g., 60 days] pending any buyer issues I understand Etsy may not reinstate shop, but withholding legitimately earned funds for six months causes severe financial hardship and lacks legal justification. Please respond within 7 days. Sincerely, [Your Name] [Phone] [Email] Enclosures: • Order/transaction records • Product creation process documentation • Buyer communications showing satisfaction
Legal Remedies & Options
Legal Theories
Claim Elements Damages
Breach of Contract Platform violated TOS or acted in bad faith (suspended without cause, denied appeal without review) Withheld funds + lost profits from suspension period
Breach of Implied Covenant of Good Faith Platform exercised discretion arbitrarily, denied due process, automated decision without review Contract damages + consequential losses
Conversion Platform wrongfully withheld funds or inventory beyond reasonable period Value of withheld property + interest
Unfair Competition (CA §17200) Platform's suspension practices are unfair, fraudulent, or unlawful Restitution + injunctive relief (reinstatement)
Tortious Interference Platform's actions interfered with user's business relationships, contracts Lost business value + reputation harm
Arbitration Requirements

Most marketplace agreements require arbitration:

  • Upwork: AAA arbitration; filing fee $200-$2,000 depending on claim amount
  • Amazon: Arbitration required for claims over $50,000; small claims allowed for smaller amounts
  • eBay: Binding arbitration via AAA
  • Etsy: Arbitration clause in Terms of Use (as of recent updates)
  • Fiverr: Arbitration required; opt-out window within 30 days of account creation
Small Claims Court Strategy

For withheld funds under state limits:

  • California: $10,000 limit (perfect for many Upwork/Etsy fund holds)
  • New York: $5,000 limit (small claims) or $10,000 (commercial claims court)
  • Texas: $20,000 limit (justice court)
  • Strategy: Sue for conversion (wrongfully withheld funds); many platforms don't defend small claims vigorously
  • Service of process: Serve registered agent in your state or platform HQ
  • Default judgment: If platform doesn't respond, obtain default and enforce collection
⚠️ Arbitration Removal: Platform may remove small claims case to arbitration. Ensure your claim amount is below small claims limit and emphasize preference for small claims in complaint.
Class Action Potential

Marketplace suspensions may support class actions if:

  • Pattern of wrongful suspensions: Platform systematically suspends accounts without cause
  • Automated decisions without review: Algorithm-driven bans affecting thousands of users
  • Common legal theory: All class members harmed by same policy (e.g., 180-day fund holds)
  • Class action waiver challenges: Some jurisdictions find class waivers unconscionable in adhesion contracts
Settlement Leverage
  • Arbitration cost: Platform's legal defense costs $20k-$50k; early settlement cheaper
  • Publicity risk: Media coverage of wrongful suspensions harms platform reputation
  • Regulatory scrutiny: FTC investigating marketplace practices; complaints add to regulatory pressure
  • High-value accounts: Users with years of history and significant earnings have stronger claims
  • False positives: Automated suspensions create sympathetic fact patterns for juries/arbitrators
Regulatory Complaints

File complaints (in addition to legal action) with:

  • FTC: Online complaint portal; FTC tracks patterns of unfair/deceptive practices
  • State Attorney General: Consumer protection divisions investigate marketplace platforms
  • BBB: Platforms maintain ratings; complaints may trigger executive review
  • State licensing boards: (If applicable) Some platforms subject to state money transmitter laws
Litigation Success Factors

Users win when they show:

  • Strong account history (years of positive reviews, high ratings, significant earnings)
  • No actual TOS violation (false positive from automated system)
  • Platform denied appeal without meaningful review
  • Prolonged fund hold without justification (no disputes, chargebacks pending)
  • Specific evidence contradicting platform's suspension reason

Platforms win when they show:

  • Specific TOS violations (documented policy breach, customer complaints)
  • Broad discretion in agreement ("may terminate at any time")
  • Legitimate business reason (fraud indicators, quality issues, authenticity concerns)
  • User had notice and opportunity to appeal
  • Fund hold justified by ongoing disputes or chargeback exposure
Attorney Services for Marketplace Disputes
Account Suspended? Funds Withheld?

I represent freelancers, sellers, and service providers in disputes with Upwork, Amazon, eBay, Etsy, Fiverr, and other online marketplaces. I handle appeals, demand letters, arbitration, and litigation to recover withheld funds and reinstate accounts where possible.

Services for Suspended Users
  • Analyze suspension notice and TOS to identify legal claims
  • Draft and submit platform-specific appeals (Plans of Action for Amazon, etc.)
  • Send formal demand letters threatening arbitration/litigation
  • File and prosecute arbitration claims under platform agreements
  • Pursue small claims litigation for fund recovery (under state limits)
  • Negotiate settlements for partial fund release or account reinstatement
  • File regulatory complaints (FTC, state AG) to add pressure
  • Advise on alternative platforms and business continuity during dispute
Services for Platforms
  • Defend suspension and termination decisions in arbitration/litigation
  • Draft and enforce terms of service, suspension policies
  • Respond to demand letters and arbitration demands
  • Advise on compliance with consumer protection laws, Section 230
  • Develop appeals processes that reduce false positives and litigation risk
  • Defend class action claims challenging suspension practices
Why Experience Matters
Platform-Specific Knowledge: Each marketplace has unique suspension triggers, appeal processes, and legal vulnerabilities. I have handled disputes across Upwork, Amazon Seller Central, eBay, Etsy, and Fiverr, and understand what arguments work with each platform's legal teams.
Fee Structures
  • Platform appeal drafting: Flat fee ($500-$1,500 for POA, Upwork appeal, etc.)
  • Demand letter: Flat fee $575
  • Small claims representation: Flat fee ($1,000-$2,000) or contingency (33%)
  • Arbitration: Hybrid (flat fee for filing + hourly for hearing) or contingency for high-value cases (33-40%)
  • Contingency basis: Available for strong cases with $10k+ in withheld funds
Representative Matters
  • Upwork suspension ($85k withheld) - arbitration resulted in full fund release + $30k damages
  • Amazon Seller account suspension - successful POA appeal, account reinstated with $200k inventory returned
  • Etsy permanent deactivation - negotiated early release of 60% of funds (avoided 180-day hold)
  • eBay linked account suspension - proved accounts legitimately separate, both reinstated
  • Fiverr ToS violation dispute - demand letter resulted in warning removal, account reinstated
Typical Timeline
Stage Timeline
Platform appeal drafting/submission 2-5 days
Platform response to appeal 7-30 days
Demand letter preparation/sending 3-7 days after appeal denied
Platform response to demand 14-30 days
Arbitration filing Immediately if demand rejected
Arbitration hearing 4-8 months after filing
Small claims court 60-90 days from filing to hearing
Schedule a Call

Book a call to discuss your marketplace suspension. I'll review your suspension notice, evaluate your legal claims, and recommend whether to pursue arbitration, small claims, or negotiated settlement.

📝 Create Your Demand Letter

Generate a professional demand letter, CA court complaint, or arbitration demand

Contact Information

Email: owner@terms.law

Frequently Asked Questions
Platforms prohibit this and use detection systems (device fingerprinting, address matching, tax ID, linked bank accounts) to identify ban evasion. Creating new account after ban risks: (1) Immediate suspension of new account, (2) Forfeiting any funds in new account, (3) Strengthening platform's legal position if you sue (you violated TOS by evading ban). Better approach: Fight original suspension through appeals and legal channels. If unsuccessful and you must return to platform, significant time gap + different business entity + different address/bank may work, but high risk.
Depends on your goals and case strength. Economics: Demand letter costs $1,500-$2,500; may get funds released without further action. Small claims DIY costs $50-$100 (filing fee); lawyer representation adds $1,000-$2,000 flat fee or 33% contingency. Arbitration expensive ($5k-$20k+) unless lawyer works on contingency. For $5k withheld: (1) Try internal appeal yourself (free); (2) If denied, pay for demand letter ($1,500); (3) If still denied, small claims court DIY or with lawyer on contingency. Lost reputation and future earnings may justify legal spend beyond immediate withheld funds.
Amazon's standard policy: 90 days after suspension. However, actual timeline varies: (1) If account reinstated quickly, funds released immediately; (2) If suspension maintained but no A-to-Z claims or chargebacks, 90 days; (3) If authenticity/safety issues, Amazon may extend hold or require additional documentation; (4) If inventory disposal issues, funds may be held longer pending inventory return/destruction. After 90 days with no claims, Amazon typically auto-releases remaining balance. Legal pressure (demand letter, arbitration threat) can accelerate release if Amazon's suspension basis is weak.
Yes, but difficult to prove. Compensable damages may include: (1) Withheld funds (easy to prove); (2) Lost income during suspension (must show you couldn't earn elsewhere); (3) Business value destruction (years of reviews, rankings lost - requires expert valuation); (4) Emotional distress (rarely awarded in commercial disputes); (5) Punitive damages (only if bad faith/malice, jurisdiction-dependent). Strongest cases: High-value accounts (Top Rated on Upwork, high GMV on Amazon) with quantifiable income streams. Need evidence: historical earnings, comparable platform income, expert testimony on account value. Most settlements focus on withheld funds + 3-6 months lost income rather than attempting to value reputation loss.
Strong legal position against platform AND potentially against competitor. Against platform: (1) Show suspension based on false/fraudulent reports; (2) Argue platform failed to investigate before suspending; (3) Demand review of complaint source and evidence. Against competitor: (1) Tortious interference claim (competitor intentionally harmed your business); (2) Defamation if false statements (counterfeit claims, quality complaints); (3) Unfair competition (false advertising, anti-competitive conduct). Evidence needed: Pattern of complaints from same source, timeline showing competitor benefit, admission or proof of false reporting. Platforms sometimes reveal complaint source under subpoena or court order. Consider: parallel legal action against platform (suspension/fund release) and competitor (damages for interference).