Seattle, Washington – August 29, 2025 – Amazon.com has escalated its crackdown on marketplace fraud by filing a lawsuit against a New Mexico-based broker accused of illegally selling verified Amazon seller accounts for up to $8,500 each, complete with fraudulent verification documents to help bad actors evade the company’s rigorous screening processes. The suit, filed on August 27, 2025, in King County Superior Court for Washington, targets Seller Central—operating under the domain premiumsellers.com—and its principal, attorney Mark Tate of the Tate Law Group. Represented by Davis Wright Tremaine, Amazon alleges violations of consumer protection laws, breach of contract, and tortious interference, seeking injunctive relief, damages, and the disgorgement of ill-gotten gains. This action underscores Amazon’s ongoing battle to maintain platform integrity amid a surge in sophisticated scams that undermine trust for its 300 million active customers and 2 million sellers.
The complaint details how Seller Central markets “premium” Amazon seller accounts—pre-verified with high limits and clean histories—to unscrupulous operators looking to bypass Amazon’s identity verification and compliance checks. These accounts, allegedly bundled with fake IDs, utility bills, and bank statements, allow fraudsters to list counterfeit goods, engage in fake reviews, or perpetrate refund scams without detection. Amazon claims the broker’s activities have facilitated millions in fraudulent transactions, harming legitimate sellers and inflating costs for consumers through manipulated competition. “Defendants are actively deceiving Amazon’s customers and tarnishing Amazon’s brand for their own profit, as well as for the profit of dishonest sellers,” the lawsuit states.
Tate, who is representing himself in the case, dismissed the suit as retaliatory, claiming it stems from his recent departure from Davis Wright Tremaine, where he previously worked on unrelated matters. In a statement to Law.com, Tate called the allegations “baseless and vindictive,” asserting that his firm only provides legal consulting on Amazon policies and does not engage in account sales. However, court filings include screenshots from premiumsellers.com advertising accounts for $2,500 to $8,500, depending on features like “unlimited storage” and “verified status,” with testimonials from purported buyers praising the service for “quick setup and no bans.”
The Alleged Scheme: Brokering Accounts to Evade Amazon’s Safeguards
Amazon’s Seller Central platform requires new sellers to undergo strict verification, including government-issued IDs, proof of address, and bank details, to prevent abuse. Once approved, accounts can access tools like Fulfillment by Amazon (FBA) and advertising, enabling high-volume sales. The lawsuit accuses Seller Central of exploiting this system by sourcing or fabricating verified accounts from suspended or inactive users, then reselling them to bad actors—often overseas operators—who use them for illicit purposes.
Specific allegations include:
- Fraudulent Documentation: Providing forged documents to “verify” accounts during Amazon’s onboarding, allowing buyers to appear legitimate.
- Account Laundering: Transferring control of existing accounts via unauthorized methods, violating Amazon’s Terms of Service that prohibit account sales or transfers.
- Enabling Fraud: Sold accounts have been linked to scams like “empty box” schemes (shipping nothing but claiming fulfillment) and fake review mills, which Amazon says cost the platform over $1 billion annually in losses and enforcement.
Dharmesh Mehta, Amazon’s VP of Worldwide Customer Trust & Partner Support, emphasized in a blog post that such brokers “create an unfair playing field, deceiving shoppers and harming honest sellers.” This lawsuit builds on Amazon’s multi-year campaign against fraud, including over 90 actions in 2022 alone targeting fake review brokers and counterfeiters. The company invests $1.2 billion yearly and employs 15,000 staff to combat abuse, blocking 250 million suspected fake reviews in 2023.
Legal and Industry Context: Part of a Broader Anti-Fraud Push
This suit aligns with Amazon’s aggressive litigation strategy, which has included high-profile cases against review brokers like AppSally and Rebatest (2022), who allegedly facilitated 900,000 fake reviews for fees starting at $20, and REKK (2023), an international ring accused of bribing employees for $ millions in unauthorized refunds. In a landmark 2023 joint action with the Better Business Bureau, Amazon targeted ReviewServiceUSA.com for selling inauthentic reviews across platforms. More recently, in July 2024, Amazon and the BBB sued fake review operators, blocking services that solicited positive feedback for products and businesses.
The FTC has also scrutinized Amazon, filing an antitrust suit in 2023 alleging monopolistic practices that stifle competition and raise prices—claims Amazon denies, arguing its innovations benefit consumers. Separately, a December 2024 lawsuit from liquidator Xcess Ltd. accused Amazon of overcharging for bulk warehouse goods, including inflated prices on items like $40 solar eclipse glasses. These cases highlight the e-commerce giant’s dual role as plaintiff and defendant in a fractious legal landscape.
For the legal tech sector, this case was flagged by Law.com Radar, a real-time litigation alert tool monitoring over 2,900 courts. It comes amid rising cyber threats; the growing sophistication of attacks has boosted demand for cyber insurance, with firms like Methfessel & Werbel handling related coverage disputes.
Implications for Sellers, Consumers, and the Platform
If successful, Amazon’s lawsuit could dismantle Seller Central’s operations, forcing a reckoning for the underground market in seller accounts, estimated to be worth tens of millions annually. Legitimate sellers, who pay up to 50% of revenues in fees, stand to benefit from reduced competition from fraudsters, potentially lowering compliance costs. Consumers could see fewer counterfeit products and more reliable reviews, aligning with Amazon’s goal of ensuring “every review reflects an actual customer experience.”
However, critics argue Amazon’s verification processes are overly burdensome for honest users, contributing to seller frustration and platform exits. Tate’s counterclaim of retaliation—if pursued—could expose internal firm dynamics at Davis Wright Tremaine, adding intrigue to the proceedings. The case is assigned to Judge Olivia Roehrig, with an initial hearing set for October 2025.
As Amazon continues its fraud purge, this lawsuit serves as a stark warning to brokers: The era of profiting from platform vulnerabilities is ending, one $8,500 account at a time. For more on Amazon’s anti-fraud efforts, visit aboutamazon.com.