Hello, there is an international company who also operates in india..it works for sending and recieving money for your online business.. Back in 2019, I started doing dropshipping..I got into that and started doing dropshipping and i made some income from that. So i was recieving all the money on this company platform..I was naive ,that time i did not read term and conditions that they dont allow dropshipping..They have a rule of holding the amount for 21 days if there is an increase in sales figure.. Then after that they ask for manufacturing details and all that..But i was doing dropshipping and in that you dont need to have physical business.. In almost 99% of the case they ban account after knowing if someone is doing dropshipping on their platform..Thats why i have not gone to their customer support due to fear of being banned and my money is still on hold since two years and i can see that by logging in.. From the legal point of view i want to know my options..Can they have the right to snatch all my money?..its my hard earned money..The amount is not quite big but big enough to change my family poor situation..I dont want to loose that money..I cant do anything in this ? Sorry for posting such a long question..Please can someone clarify what should i do..
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Send legal notice to company to release your funds placed on hold
2) if company refuses to pay due the company to recover your dues with interest
3) Dropshipping is simply a retail fulfillment method. It simply means that the retailer (in this case, the online store) doesn’t stock the products listed on its site.
4) Instead, a merchant purchases the item from a third-party supplier and has it shipped directly to the customer.it is legal
Thanks for the answer sir..so can i still challenge them ?.i mean i did not read the terms and conditions that they are against dropshipping on their paltform.. Can they be able to feeeze my money ? Do they have the right ? Do i have any legal recourse ?
your money should not be freezed .
you can take legal proceedings against the company
The company's policies and rules play a vital role in this contractual agreement.
If you have signed the agreement accepting their terms and conditions (whether you knew them or not), then you are bound by the their terms.
You very clearly say that the company will ban the account of the person who involves in dropshipping using their platform.
You should be aware that the big companies like Amazon does not offer a dropshipping service itself, instead it allows third-party sellers to use its platform to sell products, including utilizing the dropshipping model.
If this company has a clear policy don't allow the dropshipping using their platform then you are at fault for doing thing in contravention to the agreement conditions.
The international company may not risk using the products offered by the persons/company through dropshipping model owing to genuineness of the products which may tarnish their reputation in the market if there is any issue in it.
However yo may approach the company for return of the amount held by them and wait for their reply to decide about further course of legal action.
If you are confident that you have not violated the company's policies nor have breached the contract conditions, you may proceed with the legal action but before that you peruse the agreement conditions properly and then consult a lawyer before proceeding legally
Dear Client,
While you mentioned you didn't read the terms and conditions initially, it's still important to review them now to understand the company's policies regarding holding funds and their stance on drop shipping. This will give you a clearer picture of your legal standing. Despite your apprehension, it might be worth reaching out to the company's customer support to inquire about your account status and the possibility of releasing your funds. If you believe the company's actions are unjust or in violation of consumer protection laws, you may file a complaint with relevant regulatory authorities or consumer advocacy organizations. They can investigate the matter and potentially intervene on your behalf. While it may not solve the immediate issue, you could explore alternative payment methods for your online business to avoid similar situations in the future.
- There is no law in India , that prohibits the operation of dropshipping businesses.
- Further, an Indian resident can make Direct Investment without prior approval of RBI under Liberalized Remittance scheme.
- Further, the incorporation of a one-sided clause in an agreement constitutes unfair trade practice as per Section 2(r) of the Consumer Protection Act, 1986.
- Hence, only due to violation of the said clause of dropshipping , the said company cannot withhold your invested amount.
- You can send a legal notice for demanding the said freeze amount , and if no response then file a complaint before the cyber crime .
