Not upheld: account restriction and fund withholding complaint against Amazon Payments UK Limited (APUK)

Decision detail

Summary

P, a seller on Amazon, complained that APUK wrongly restricted access to its seller account funds for over a year. P claimed the initial VAT issue was resolved but funds remained withheld without clear explanation. The ombudsman found that APUK's actions were permitted under the Selling on Amazon User Agreement, which allows fund restrictions when disputes exist involving the account. An unresolved dispute between P and AEU regarding P's UK establishment status for VAT purposes justified APUK's withholding. The complaint was not upheld as APUK acted fairly within its contractual rights, though the ombudsman acknowledged P's difficult position.

The Ombudsman's reasoning

The ombudsman found that APUK, as a payment services provider, was entitled to restrict access to P's funds under section 2.7 of the Selling on Amazon User Agreement, which permits restrictions when a dispute exists involving the account or related transactions. Since an unresolved dispute existed between P and AEU regarding P's UK establishment status for VAT purposes, APUK's withholding of funds was in line with the contractual terms. The ombudsman clarified that while AEU's actions fell outside FOS jurisdiction, APUK's actions in withholding funds based on information from AEU were fair and reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website