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For the sake of a competitive advantage, Amazon (NASDAQ:AMZN) has traditionally kept many details of its business secret, but a class-action lawsuit brought Friday in a U.S. District Court in Seattle sheds light on how the Internet retailer funds day-to-day operations and manages its relationships with third-party sellers.
While Amazon sells a wide range of products ranging from books to blenders to diamond rings, the company also depends on third-party sellers to expand its selection of merchandise. The suit revolves around these merchants and their allegations that the company has violated its own terms and Washington state law — where Amazon is based — by withholding payments for up to 90 days, and in some cases, even longer.
“While Amazon contends to have the contractual basis, in some instances, for holding the funds for 90 days, Amazon routinely holds funds beyond the contractual period, often well in excess of 90 days,” the suit stated, according to the Seattle Times.
The lawsuit seeks full restitution of “monies wrongfully obtained,” financial interest, and other unspecified damages, reported the publication…
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