This issue is called a TRO (Temporary Restraining Order)

From user Liberty : I am seeing a lot of sellers encountering this issue and not realizing what is happening. So I want to educate everyone here since I am currently going through the same thing and was able to get my attorney to dissolve the injunction. First, please do a search on “TRO (Temporary Restraining Order) , SAD Scheme, lawsuit" to get yourself acquianted. There are also some Youtube videos from AmazonSellersLawyer about this type of scheme and I highly recommend watching

1) If you have funds in Account Level Reserve and have not received normal disbursements, please check your emails/messages ASAP. There should have been an email titled something like "Your Amazon.com selling account" and it should read like this:

Hello from Amazon;

We are writing to inform you that we removed some of your listings and your disbursements from your seller account have been placed on hold. We took this action in accordance with a Temporary Restraining Order issued by a federal court. Items that infringe another party's copyright, patent, trademark, design right, database right, or other intellectual property or other proprietary right are prohibited.

2) This means a law firm has listed your store as one of hundreds/thousands of defendants and grouped you together in the case. Amazon is forced to obey the TRO, so opening up cases with Amazon and SS is pointless and waste of time. By freezing your account/funds, plaintiff is hoping to squeeze you into settling with them, usually for a percentage of the funds frozen. They don't care whether you are guilty or not. They just want to steal from you. It's basically extortion.

3) You need to hire an attorney immediately to file a motion on your behalf. If you do nothing, then your funds remain frozen and you are now at the mercy of the court. Most sellers don't even realize this and what ends up happening is defendants don't show up to court to challenge the merits of the case, and the argument is one-sided in plaintiff's favor. Court passes a default judgment and the plaintiff will receive whatever funds are frozen in all of the remaining defendant's accounts.

4) By fighting, you increase your chances of getting dismissed from the case, as plaintiffs usually don't want anyone challenging/jeopardizing their case.

I hope this is helpful. I will try to answer anyone who has any questions on this matter.

to recap:

a TRO (Temporary Restraining Order) it is a temporary hold on your funds due to someone or a company having a lawsuit against a particular product that you have sold in the past , or you have listed (without having any sales) in the past.

This results in Amazon Freezing all your account funds until such problem is results, meaning you have to bring a lawyer involve or contact the company that placed the TRO agains such brand and against amazon trying to get money. you must settle this , and until this is not solved your funds will be frozen.

How do you know if you have a TRO ?

simple, go to PERFORMANCE > Account health, and go below where it says at the bottom right : PRODUCT COMPLIANCE REQUESTS , and you will see it.

Hope this helps