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LEGAL ESSENTIAL TIPS FOR SELLING ON AMAZON If you’re considering selling your products on Amazon Marketplace, it’s important to consider some legal matters. ABy Gladwin Legal partner Rosalyn Gladwin. mazon is one of the strongest marketplaces in the world and has continued to be a growing retail space in Australia, especially now as footfall in malls has drastically decreased. While there are certainly nuts and bolts associated with starting to sell products on Amazon, we want to focus on the hidden legal traps that often lead business owners into hot water. Make sure you have your trademark registered If you’re a private brand Amazon seller, your first priority should be registering your trademark in the country where you’re intending to sell your products. This will protect your product name and/ or logo and give your account a preferred status with Amazon. When registering your proposed trademark, it should be distinctive from other trademarks in respect of similar goods and services in your trading country. The more distinctive your name and logo are, the more likely the relevant trademark office will accept the registration. In this country, the authority is IP Australia. Its database will allow you to conduct a search to determine whether businesses are operating under the same name that you’re proposing to use. You should also conduct these investigations using other online searches, ASIC and foreign databases, depending on where you intend to trade. In some countries these searches are relatively easy and in others you’ll need to use a local agent (lawyer). Amazon has a strong anti-counterfeiting policy. If it receives a complaint regarding the authenticity of your listing, consequences can include “loss of selling privileges, funds being withheld, destruction of inventory in ... fulfilment centres, and other legal consequences”. Importantly, you should also register your mark in the country where you’re manufacturing your products – before disclosing your items. Having your brand registered gives you a legal avenue to pursue in the event that a third party attempts to copy or infringe your mark or logo. Supply agreements If you’re using an external manufacturer, it’s important to have comprehensive supply agreements in place with specific terms and conditions outlining your arrangement. The agreement may cover topics such as: • How rejected stock will be disposed. • Protocol for preventing manufacturers from duplicating your products. • Consequences if manufacturers copy your items. • Privacy and confidentiality clauses to ensure your product design is not disclosed to third-party individuals. Understand Amazon’s policies and seller requirements Amazon is a global marketplace regulated by its own agreements and policies. Therefore, it’s important that potential Amazon sellers familiarise themselves with all applicable policies and seller agreements, including when and how they’re likely to change. Amazon’s policies constantly change to meet its growth needs and changing global laws. As an Amazon seller, you’ll be required to maintain your knowledge of its policies, regardless of whether any notice of these changes is provided to you by Amazon. Brand protection Amazon has a brand registry designed to help brand owners protect their trademarks by providing access to proprietary text and image search, predictive automations, and reporting tools. There are eligibility requirements to participate in its brand registry, including having an active registered trademark in each country where you intend to enrol in the Amazon registry. The benefit of being listed on the Amazon brand registry is that Amazon will assist you to protect your brand from counterfeit and infringement issues. Tax All Australian based Amazon sellers are responsible for the collection and payment of the taxes for the products they’re selling on the platform. If your Amazon store is a business, you’ll need to include your Amazon income in your tax return under your ABN. Additionally, each country in which you trade via Amazon will have its own tax legislation and requirements. You’ll need to ensure you’re aware of the specific requirements for each of your trading countries so you don’t inadvertently breach the local laws. About Rosalyn Gladwin Rosalyn is the principal of Gladwin Legal, being an expert in all facets of retail law, including commercial and corporate law and retail leasing. She has extensive legal experience in the retail industry, having worked in a national ASX listed retailer for seven years as well as in highly regarded national and international law firms. About Gladwin Legal Gladwin Legal is the law firm for retailers. As experts in retail law, the firm understands the legal matters that challenge retailers daily. Its areas of expertise include retail and commercial leasing, supply and distribution agreements, intellectual property, ecommerce and IT agreements, sale of business and competitions and trade promotions. Get in touch at www.gladwinlegal.com.au. 60 RETAIL WORLD APR, 2020