Small business accuses Sharp of using Amazon to stifle competition and inflate prices.
Esquared Trading LLC, a New Jersey-based Amazon reseller, has filed a lawsuit against electronics giant Sharp Corporation and its US distributor, Victor Technology LLC, alleging a scheme to manipulate online marketplaces and suppress competition. The lawsuit, filed in the United States District Court for the District of New Jersey, accuses the defendants of submitting false intellectual property infringement reports to Amazon to block Esquared from selling genuine Sharp products.
The complaint, lodged by Esquared on August 8, 2024, outlines a series of allegations against Sharp and Victor, claiming the companies engaged in a “coordinated effort” to control the pricing and distribution of Sharp products on platforms like Amazon. Esquared, which resells consumer products through its Amazon storefront, asserts that the defendants filed numerous baseless complaints, leading to the suspension of its product listings and a significant loss of revenue.
According to the lawsuit, the defendants falsely accused Esquared of selling counterfeit Sharp products, even though the items in question were authentic and legally obtained. The lawsuit highlights a specific instance in May 2024, when Amazon suspended Esquared’s listing for a Sharp calculator following a complaint that falsely claimed the product was missing a power cord. Esquared maintains that the product was accurately advertised as battery-powered, with no power cord included.
Esquared’s legal team argues that Sharp and Victor exploited Amazon’s policy of acting on intellectual property complaints without thorough verification, knowing that such actions would harm competitors like Esquared. The lawsuit contends that these tactics were part of a broader strategy to eliminate fair competition and inflate prices by restricting third-party sellers’ access to the marketplace.
The lawsuit seeks a declaratory judgment affirming that Esquared did not infringe on any trademarks, an injunction to prevent Sharp and Victor from filing further false claims, and compensation for damages incurred, including loss of business and harm to Esquared’s reputation. The company also seeks a jury trial to address the alleged defamation and tortious interference with its business relationships.
