Amazon.com sued for defamation over affiliate ads on Google |
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Busy legal times for Amazon. The online retail giant is negotiating a settlement to a lawsuit over cracked Kindles. Now the company has been slapped with a lawsuit from a small electronics retailer called Sellify. Sellify is suing Amazon for trademark infringement and defamation, among other things, over Google search ads that paint Sellify as a "scam artist." The lawsuit alleges that an Amazon affiliate, not Amazon itself, is buying the ads, but argues that the affiliates are acting as Amazon's "de facto agents."
The lawsuit (pdf, 15 pages), filed Dec. 17 in federal court in New York, describes Sellify as "an online retailer of mostly used cameras and other digital electronic equipment." It alleges that an Amazon affiliate, Cutting Edge Designs, purchased the URLs of Sellify's onequality.com website (and a slightly misspelled version of the website) as advertising keywords on Google. A search for those websites on Google produces a sponsored link that warns "Beware the SCAM Artists" and directs people to an Amazon.com web page on camcorders, the lawsuit states.
As Techdirt notes, there have been a slew of lawsuits over Google ads and "many courts have found that there is no trademark violation in competitive ads on trademarked keywords." The Sellify lawsuit targets Amazon, not Cutting Edge Designs, and it will be interesting to see if Sellify has any luck making Amazon accountable for the actions of an affiliate. Amazon's relationship to its affiliates, who link to Amazon products in exchange for a cut of sales, has come under closer scrutiny this year, with a variety of states seeking to make Amazon collect sales tax based on its ties to local affiliate websites.
Sellify seeks at least $18 million in punitive and compensatory damages, unspecified losses, attorneys' fees and other costs. Amazon spokesman Craig Berman had no comment, and Francis Dehn, the attorney representing Sellify in the lawsuit, couldn't immediately be reached for comment.
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