Electronic Merchant Systems Lawsuit – Things to Know About an E-Commerce Lawsuit

The lawsuit: In a recent article I mentioned an electronic merchant systems case. This is one of the biggest problems currently faced by affiliates online. Affiliates are starting to use affiliate marketing networks to get affiliates to promote their products for them. They set up a system and affiliates sign up under their names, or as affiliates themselves.

At some point all of the affiliates to start promoting the products for the network, and the network gets hit with a lawsuit from one of their affiliates for pushing the products too hard. The affiliate sued the network because they were using their name to drive sales to the product owner, when they weren’t supposed to.

Electronic Merchant Systems Lawsuit

The lawsuit: What happened is that the affiliate marketer was using his own money to start the program. He had a contract with the product owner to get the program started and he wanted to make money in it.

After promoting the product he was getting more sales than he expected, so he bought a bunch of space on one of the affiliate programs’ websites. That’s when the whole thing unraveled. The affiliate marketer realized that he had signed a contract with the product owner, and the product wasn’t being sold according to his guidelines, so he sued the product owner.

The lawsuit: The problem here is that the affiliate marketing strategy wasn’t designed to protect the affiliates who’d sign up.

Instead, most affiliate marketing systems have very little protection for the person actually doing the marketing. The reason is that these systems are usually set up by middlemen who are trying to make a quick buck.

They aren’t designed to provide adequate service for the customer. An affiliate marketing system can be abused, if you’re not careful, by unscrupulous marketers who use it to just throw their weight around and spam people.

How this will affect starting affiliate marketing networks?

If you’re an affiliate marketer and you discover that your program has been abused, you will have to do something to change it, or you will risk being blackballed from the network.

A big name network recently decided to do a “blackballing” procedure, which means they would ban anybody who joined without being able to prove that they had done what they said they would. This kind of action could have a significant effect on small businesses that don’t have much money. Even if the network was small, it’s still a big problem.

Does this mean that the electronic merchant systems lawsuit will affect everybody who operates an e-commerce website? No, not necessarily.

It depends on the type of marketer. Affiliate marketers, especially new ones, need to be careful. If you’ve signed up for an electronic merchant systems lawsuit, you have to find a way to get out of it, otherwise you might find yourself blackballed from the network.

Even the people who are doing very well by helping others make money have run into some trouble lately.

Some affiliate marketers were sued for breach of contract when they weren’t actually providing the services that were supposed to be performed. Other merchants have faced a number of lawsuits for fraud and breach of warranty when they either did not deliver products on time.

Sometimes e-commerce lawsuit results in a settlement, but sometimes they result in a trial. Either way, you need to make sure you know all about these lawsuits before signing on the dotted line. You don’t want to get sued because you didn’t do your due diligence before signing on the dotted line with an e-commerce lawsuit hosting company.