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Amazon Sued E-Commerce Coaches Over Alleged Seller Tactics in 2019

Amazon accused e-commerce coaches of misleading marketing and review exchanges in a 2019 lawsuit. The allegations, reported costs and case outcome are distinct questions.
From TheFinanceBase Team2 min to read
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Amazon sued Michael Gazzola, Matthew Behdjou and related companies in federal court in Seattle in 2019, alleging deceptive marketing, misuse of Amazon’s name and trademarks, and a seller-coaching scheme built around exchanges of purchases and reviews. The allegations were reported by GeekWire; the report does not establish that a court found the claims true or how the case ultimately ended.

What did Amazon accuse the coaches of doing?

GeekWire reported on October 22, 2019, that Amazon’s lawsuit accused Gazzola, Behdjou and related companies of using websites, videos, podcasts, emails and seminars to attract aspiring Amazon sellers. Amazon alleged that the defendants misused its name, intellectual property and reputation to promote coaching programs. The complaint, as quoted by GeekWire, said: “Defendants improperly exploit Amazon’s name, intellectual property, and reputation to sell their get-rich-quick scheme to unwitting entrepreneurs around the country.” That is Amazon’s characterization of its claims, not a court finding.

GeekWire said Gazzola and Behdjou had worked together on Amazon Secrets before separating and running their own coaching businesses. The programs purported to teach customers how to establish Amazon businesses, source goods from China, advertise products and obtain positive reviews.

How did the alleged review exchange work?

Amazon alleged that participants were instructed to buy one another’s products and post reviews, then receive refunds through services such as PayPal or Venmo. Amazon said this process created what it called a “perpetual cycle of rigged reviews.” The description is an allegation attributed to Amazon, not independent proof that particular reviews were fake.

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The alleged arrangement matters because it connected the coaching offer to product ratings: participants would make purchases and leave reviews in a reciprocal system, while refunds allegedly returned the money spent. GeekWire’s report does not provide an independent measure of how widespread such schemes were.

How much did the seller coaching program cost?

GeekWire reported that Amazon alleged Online Secrets charged $5,000 to $10,000 for programs lasting three months to one year. These are amounts and durations attributed to Amazon’s allegations in the 2019 report, not a current price list or confirmation of what every participant paid.

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Did Amazon win its lawsuit?

The GeekWire report dated October 22, 2019, does not establish the lawsuit’s final disposition. It supports saying that Amazon filed suit and made the allegations described above; it does not establish a judgment against the defendants or a finding that they committed fraud. The present status of the coaching businesses is likewise not established by that report.

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How is the separate $102 million settlement related?

GeekWire also cited a settlement of up to $102 million in a separate 2017 case involving Amazon and Washington State. That matter involved a different group and should not be treated as a result, penalty or settlement in Amazon’s 2019 lawsuit against the coaches.

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