1

3
AMERICAN ARBITRATION ASSOCIATION
4

5
AMAZON.COM, INC., a Delaware
6 corporation, No. ____________________

7 Claimant,

8 v.

9 ALEXIS PABLO MARROCCO, an

individual; HAYEK ENTERPRISES LLC, a
10 Wyoming limited liability company; FENIX
ENTERPRISES, LLC, a New York limited
11 liability company; EMILY WHEELER, an
individual; D’ANCONIA ENTERPRISES,
12 LLC, a Delaware limited liability company;
and HYDRA ENTERPRISES LLC, a
13 limited liability company,

14 Respondent.

15
AMAZON.COM, INC.’S
16 DEMAND FOR ARBITRATION
17
Amazon.com, Inc. (“Amazon”), for its demand for arbitration, states as follows:
18
I. SUMMARY
19
1. Each day, millions of consumers use Amazon’s websites to assist with their
20
purchasing decisions. In order to make those decisions more informed, Amazon provides
21
customer reviews of products and services available on Amazon. Amazon pioneered
22
customer reviews 20 years ago and is now home to hundreds of millions of unique
23
reviews. Reviews provide a forum for sharing authentic feedback about products and
24
services—positive or negative. Amazon does not remove reviews because they are
25
critical of products; Amazon believes all helpful information can inform its customers’

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 1 buying decisions. Whether positive, negative, or anywhere in between, Amazon takes the
2 credibility of its customer reviews very seriously.
3 2. One segment of Amazon reviews consists of reader reviews of books,
4 including reviews of books self-published by authors and independent publishers through
5 Amazon’s Kindle Direct Publishing (KDP) service and sold by Amazon Digital Services
6 LLC on various Amazon websites. Authors who use this service to publish their books
7 agree to Amazon’s KDP terms and conditions.
8 3. A very small minority of KDP authors attempt to gain an unfair
9 competitive advantage by creating false, misleading, and inauthentic customer reviews for
10 their self-published books sold on Amazon. While small in number, these reviews
11 threaten to undermine the trust that customers, and the vast majority of KDP authors,
12 place in Amazon, thereby tarnishing Amazon’s brand and the Kindle brand. Amazon
13 strictly prohibits any attempt to manipulate customer reviews and actively polices its
14 website to remove false, misleading, and inauthentic reviews. Despite substantial efforts
15 to stamp out the practice, a small number of bad actors continue to endeavor to use
16 inauthentic reviews to boost their sales.
17 4. Since the beginning of 2015, Amazon has filed lawsuits against over 1,000
18 defendants who offered to post fake reviews in exchange for payment. Through these
19 efforts, as well as analysis of Amazon’s own data, Amazon has identified sellers who have
20 paid for fake reviews and taken enforcement action against those sellers such as
21 suspending or blocking their accounts. Using the same techniques, Amazon has identified
22 KDP authors who are engaging in abuse of the Amazon customer review system. This
23 demand for arbitration is a continuation of that strategy and is intended to eliminate the
24 incentives for KDP authors to engage in abuse.
25

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 1 5. Respondent Hydra Enterprises LLC (“Hydra”) is the holder of a KDP user
2 account that publishes books by an author they list as The Language Academy. Hydra has
3 engaged in an extensive and concerted effort to mislead Amazon’s customers and to
4 manipulate customer reviews for Respondent Hydra’s books. Hydra has knowingly
5 violated Amazon’s rules for KDP users, and has used deception and artifice in an attempt
6 to circumvent Amazon’s investigative and enforcement efforts.
7 6. As The Language Academy, Respondent Hydra sells language learning
8 books. Amazon has determined that across The Language Academy’s books, reviews that
9 violate Amazon’s review policies were submitted for at least 12 books. For those books,
10 769 of 956 submitted reviews on Amazon.com (80%) violate Amazon’s review policies
11 and were removed.
12 7. Respondent D’Anconia Enterprises LLC (“D’Anconia”) receives all
13 Amazon payments made to Hydra. On information and belief, D’Anconia is also the
14 holder of a KDP user account in the name of “Danconia Enterprises LLC,” which has
15 published books by an author Danconia Enterprises LLC lists as “Alphy Books.”
16 Submitted reviews on Amazon.com for Alphy Books’ books violate Amazon’s review
17 policies.
18 8. Respondent Hayek Enterprises LLC (“Hayek”) is the holder of KDP
19 account in the name of “Hayek Enterprises LLC,” which also has D’Anconia as its
20 Amazon payee. Hayek also publishes language books through its account. For these
21 additional books, at least 201 of 458 submitted reviews (44%) violate Amazon’s review
22 policies.
23 9. Respondent Fenix Enterprises LLC (“Fenix”) (also known as “Emily
24 Wheeler”) is the holder of a KDP account in the name of “Emily Wheeler,” which also
25 has D’Anconia as its Amazon payee. Respondent Fenix publishes language and religion

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 1 books through its account. For these additional books, at least 569 of 1,085 submitted
2 reviews (52%) violate Amazon’s review policies.
3 10. Respondent Alexis Pablo Marrocco is a member of Respondent D’Anconia
4 Enterprises, LLC. Marrocco uses fake KDP author names to sell books associated with
5 the accounts of the other Respondents and The Language Academy.
6 11. Upon information and belief, the actions alleged herein to have been
7 undertaken by the Respondents were undertaken by each Respondent individually, were
8 actions that each Respondent caused to occur, were actions that each Respondent
9 authorized, controlled, directed, or had the ability to authorize, control or direct, and/or
10 were actions in which each Respondent assisted, participated or otherwise encouraged,
11 and are actions for which each Respondent is liable. Each Respondent aided and abetted
12 the actions of the Respondents set forth below, in that each Respondent had knowledge of
13 those actions, provided assistance and benefited from those actions, in whole or in part.
14 Each of the Respondents was the agent of each of the remaining Respondents, and in
15 doing the things hereinafter alleged, was acting within the course and scope of such
16 agency and with the permission and consent of other Respondents.
17 12. Amazon brings this arbitration demand to terminate Respondents’ activity
18 on the KDP service and to force disgorgement of Respondents’ ill-gotten gains.
19 13. In this proceeding, Amazon brings claims for violations of §43 of the
20 Lanham Act, 15 U.S.C. §1125(a) (Unfair Competition/False Advertising); violations of
21 the Washington Consumer Protection Act (RCW Ch. 19.86); and breach of contract and
22 violation of Washington common law.
23

24

25

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 1 II. THE PARTIES
2 14. Amazon is a Delaware corporation with its principal place of business in
3 Seattle, Washington. Amazon owns and operates the Amazon.com website, and
4 equivalent international websites. Amazon has more than 250 million active customers.
5 15. Respondent Hydra Enterprises, LLC is a limited liability company.
6 Respondent Hydra is the owner and operator of the KDP user account publishing books
7 by The Language Academy.
8 16. Respondent Hayek Enterprises LLC is a limited liability company
9 registered in Wyoming. Respondent Hayek has published language books by authors such
10 as Japanese Academy through its KDP account.
11 17. Respondent Fenix Enterprises LLC is a limited liability company registered
12 in New York. Respondent Fenix is the owner and operator of the KDP user account
13 “Emily Wheeler,” and has published language books by authors such as Active Christian
14 Publishing.
15 18. Respondent D’Anconia Enterprises LLC is a limited liability company
16 registered in Delaware with its principle place of business in Valley Cottage, New York.
17 Respondent D’Anconia is the payee for all funds paid to Respondents Hydra, Hayek and
18 Fenix through Amazon. Respondent D’Anconia is also the holder of a KDP account in
19 the name of “Danconia Enterprises LLC,” which has published books by an author
20 Danconia Enterprises LLC lists as “Alphy Books.”
21 19. Respondent Alexis Pablo Marrocco is an individual residing in Argentina.
22 Marrocco formed and is a member of the limited liability company D’Anconia
23 Enterprises, LLC.
24 20. Respondents create or cause to be created fake reviews for books published
25 through their KDP accounts. On one or more occasions, Respondents agreed to the

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 1 Kindle Direct Publishing Terms and Conditions (Exhibit 1), and thereby has agreed that
2 any dispute with Amazon will be resolved by binding arbitration conducted by the
3 American Arbitration Association (AAA) under AAA rules. In agreeing to the KDP
4 Terms and Conditions, Respondents affirmatively agreed to the Amazon Community
5 Guidelines (Exhibit 2), and Amazon’s Conditions of Use (Exhibit 3).
6 III. AMAZON’S PRODUCT REVIEW SYSTEM
7 21. Amazon encourages its customers to review products and services
8 available on its websites. Products available through Amazon include millions of books,
9 which also carry customer reviews. These reviews are made available on the detail pages
10 of those books. Consumers rely on this customer feedback to make informed purchasing
11 decisions. Customers trust that these reviews will be honest, helpful, and authentic.
12 22. Each book review comprises the reviewer’s textual comments and a “star
13 rating” that ranges from one star to five stars. Amazon compiles the book reviews,
14 summarizes the compiled star ratings, and publishes those results alongside the advertised
15 book for shoppers to see.
16 23. Amazon prohibits manipulating reviews, as provided in its Community
17 Guidelines, which are part of the KDP Terms and Conditions. Barred conduct includes
18 “[o]ffering compensation or requesting compensation (including free or discounted
19 products) in exchange for creating, modifying, or posting content.” Exhibit 2. The
20 Community Guidelines also state possible consequences for engaging in barred conduct:
21 Any attempt to manipulate Community content or features, including by
22 contributing false, misleading, or inauthentic content, is strictly
prohibited. If you violate our Guidelines, we may restrict your ability to
23 use Community features, remove content, delist related products, or
suspend or terminate your account. If we determine that an Amazon
24 account has been used to engage in any form of misconduct, remittances
and payments may be withheld or permanently forfeited.
25
Exhibit 2.

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 1 24. Amazon’s Conditions of Use prohibit the misleading of Amazon customers

2 through false reviews or other misleading content, stating that users “may not use a false

3 e-mail address, impersonate any person or entity, or otherwise mislead as to the origin of a
4 card or other content.” Exhibit 3.
5
25. Amazon takes the integrity of its customer reviews very seriously.
6
Amazon has developed sophisticated technologies and protocols to detect and remove
7
false, misleading, and inauthentic reviews from its website. Amazon scours its site for
8

9 fake reviews, removes them when it finds them, and takes enforcement action against

10 reviewer accounts that post fake reviews and the manufacturers, sellers, and authors

11 responsible for those fake reviews.

12
IV. RESPONDENTS’ ILLEGAL ACTS
13 26. On or around May 13, 2016, Respondent Hydra registered as the KDP
14 account Hydra Enterprises LLC. Respondent Hydra owns and is responsible for the
15 conduct of author The Language Academy.
16 27. Since joining KDP, Respondent Hydra has created or caused to be created
17 fake reviews for books by The Language Academy. For example, 956 reviews have been
18 submitted for 12 books authored by The Language Academy on Amazon.com; Amazon
19 determined at least 769 of the 956 reviews (80%) were abusive and removed them, with
20 most reviews posted by Amazon reviewer accounts whose characteristics indicate they are
21 not real customers. Amazon warned Respondent Hydra in November 2016, but the
22 review abuse has continued.
23 28. On or around April 25, 2017, Respondent Hayek registered as the KDP
24 account Hayek Enterprises LLC. Since joining KDP, Hayek has created or caused to be
25 created fake reviews for its language books. For example, at least 201 of 458 submitted

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 1 reviews for Hayek books (44%) were determined to violate Amazon’s review policies.
2 Amazon warned Respondent Hayek in May 2017, but the review abuse has continued.
3 29. On or around December 18, 2015, Respondent Fenix registered as the KDP
4 account Emily Wheeler. Since joining KDP, Fenix and/or Emily Wheeler have created or
5 caused to be created fake reviews for their language and religion books. For example, at
6 least 569 of 1,085 submitted reviews for Fenix/Emily Wheeler books (52%) were
7 determined to violate Amazon’s review policies. Amazon warned Respondent
8 Fenix/Emily Wheeler in April 2017 but the review abuse has continued.
9 30. Respondent D’Anconia—owned by Respondent Alexis Pablo Marrocco—
10 is the financial beneficiary of KDP author books sold by the other Respondents. On
11 information and belief, D’Anconia is also the holder of a KDP account in the name of
12 “Danconia Enterprises LLC,” which has published books by an author Danconia
13 Enterprises LLC lists as “Alphy Books.” Since joining KDP, Respondent D’Anconia and
14 Danconia Enterprises LLC have created or caused to be created fake reviews for books by
15 author Alphy Books.
16 31. Upon information and belief, Respondent Alexis Pablo Marrocco caused
17 each of his own actions and the actions of the other Respondents to occur. Respondent
18 Marrocco authorized, controlled, directed, or had the ability to authorize, control or direct,
19 the actions of each of the other Respondents. The actions of Respondent Marrocco and
20 the other Respondents were actions in which Respondent Marrocco assisted, participated
21 or otherwise encouraged, and are actions for which Respondent Marrocco is liable.
22 Respondent Marrocco aided and abetted the actions of the other Respondents, in that he
23 had knowledge of those actions, provided assistance and benefited from those actions, in
24 whole or in part. Respondent Marrocco was the agent of each of the other Respondents,
25

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 1 and in doing the things alleged herein, was acting within the course and scope of such
2 agency and with the permission and consent of other Respondents.
3 32. At all times, Respondents knew that Amazon’s policies prohibited their
4 activities, and knew and intended that Respondents’ actions would deceive customers.
5 The result of these intentional efforts is the deception of Amazon’s customers and unfair
6 competition with other KDP authors in the Amazon marketplace.
7 FIRST CLAIM FOR RELIEF
Federal Unfair Competition (Lanham Act, 15 U.S.C. § 1125(a))
8
33. Amazon incorporates by reference the allegations of each and every one of
9
the preceding paragraphs as though fully set forth herein.
10
34. Respondents made false and misleading statements of fact in the
11
commercial advertisement of e-books sold on the Amazon.com website.
12
35. Those statements deceived or had the capacity to deceive a substantial
13
segment of potential consumers.
14
36. The deception was material, in that it was likely to influence consumers’
15
purchasing decisions.
16
37. Respondents’ acts constitute willful false statements in connection with
17
products and/or services distributed in interstate commerce, in violation of section 43(a) of
18
the Lanham Act, 15 U.S.C. § 1125(a).
19
38. Respondents’ acts have caused irreparable injury to Amazon. The injury to
20
Amazon is and continues to be ongoing and irreparable. An award of monetary damages
21
alone cannot fully compensate Amazon for its injuries and Amazon lacks an adequate
22
remedy at law.
23
39. Amazon is entitled to an injunction against Respondents, as well as all
24
other remedies available under the Lanham Act, including, but not limited to,
25

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 1 compensatory damages, treble damages, disgorgement of profits, and costs and attorneys’
2 fees.
3 SECOND CLAIM FOR RELIEF
Consumer Protection Act (R.C.W. Ch. 19.86)
4
40. Amazon incorporates by reference the allegations of each and every one of
5
the preceding paragraphs as though fully set forth herein.
6
41. Respondents have engaged in unfair and deceptive acts and practices
7
occurring in trade or commerce in violation of the Washington Consumer Protection Act,
8
R.C.W. Ch. 19.86.
9
42. Respondents’ actions were injurious to the public interest. The acts were
10
committed in the course of Respondents’ business, and caused the public dissemination of
11
false consumer reviews designed to trick consumers. Respondents’ acts had the capacity
12
to, and did indeed, harm consumers.
13
43. Respondents’ unfair and deceptive business practices have unjustly
14
harmed Amazon and are causing Amazon to suffer damages.
15
44. Amazon is entitled to treble damages and attorneys’ fees, pursuant to
16
R.C.W. 19.86.090.
17
45. As a result of such unfair and deceptive acts and practices, Amazon has
18
also suffered irreparable injury and, unless Respondents are enjoined from such unfair
19
competition, will continue to suffer irreparable injury, whereby Amazon has no adequate
20
remedy at law.
21 THIRD CLAIM FOR RELIEF
Breach of Contract
22
46. Amazon incorporates by reference the allegations of each and every one of
23
the preceding paragraphs as though fully set forth herein.
24
47. Respondents each established one or more KDP accounts and agreed to
25
Amazon’s Community Guidelines and Conditions of Use.

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 1 48. Respondents’ actions constitute material breaches of Respondents’
2 contractual obligations to Amazon, as a result of which Amazon has been damaged in an
3 amount to be proven at trial.
4 49. Respondents’ acts have caused irreparable injury to Amazon. The injury to
5 Amazon is and continues to be ongoing and irreparable. An award of monetary damages
6 alone cannot fully compensate Amazon for its injuries and Amazon lacks an adequate
7 remedy at law. Amazon is entitled to an injunction against Respondents.
8 FOURTH CLAIM FOR RELIEF
Unjust Enrichment/Restitution
9
50. Amazon incorporates by reference the allegations of each and every one of
10
the preceding paragraphs as though fully set forth herein.
11
51. Respondents unjustly received benefits at Amazon’s expense through
12
Respondents’ wrongful conduct, including their interference with Amazon’s business
13
relationships and other unfair business practices. Respondents continue to unjustly retain
14
these benefits at Amazon’s expense. It would be unjust for Respondents to retain any
15
value Respondents obtained as a result of Respondents’ wrongful conduct.
16
52. Amazon is entitled to the establishment of a constructive trust consisting of
17
the benefit conferred upon Respondents by the revenues derived from Respondents’
18
wrongful conduct at Amazon’s expense, and all profits derived from that wrongful
19
conduct. Amazon is further entitled to full restitution of all amounts in which
20
Respondents have been unjustly enriched at Amazon’s expense.
21
REQUESTED HEARING LOCATION
22
53. Amazon respectfully requests a hearing in Seattle, Washington, or at
23
another mutually agreed location.
24
PRAYER FOR RELIEF
25
WHEREFORE, Amazon respectfully requests judgment as follows:

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 1 1. That the Arbitrator issue permanent and injunctive relief against the
2 Respondents and that Respondents, Respondents’ officers, agents,
3 employees, representatives, successors and assigns, and all others in active
4 concert or participation with Respondents be enjoined from:
5 (a) selling products on any of Amazon’s websites;
6 (b) opening any Amazon accounts;
7 (c) accessing Amazon’s services in any manner whatsoever; and
8 (d) assisting, aiding or abetting any other person or business entity in
9 engaging or performing any of the activities referred to in subparagraphs (a)
10 through (c) above.
11 2. That the Arbitrator enter an Order declaring that Respondents hold in trust,
12 as constructive trustees for the benefit of Amazon, Respondents’ illegal profits gained
13 from manipulating reviews;
14 3. That the Arbitrator enter an Order instructing Respondents to pay
15 Amazon’s general, special, actual and statutory damages, including treble damages
16 pursuant to R.C.W. Ch. 19.86, in the following amounts:
17 (a) $386,513.70 attributable to the illegal conduct of Hydra; plus
18 (b) $3,973.64 attributable to the illegal conduct of Hayek; plus
19 (c) $24,937.74 attributable to the illegal conduct of Fenix/Emily
20 Wheeler; plus
21 (d) $24,146.42 attributable to the illegal conduct of D’Anconia and
22 Danconia Enterprises LLC; and
23 4. That the Arbitrator Order Respondents to pay Amazon both the cost of this
24 action and attorneys’ fees incurred in prosecuting this action; and
25

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 1 5. That the Arbitrator grant Amazon such additional and further relief as is
2 just and proper.
3
DATED this 6th day of September, 2017.
4
K&L GATES LLP
5

6 By /s/ David A. Bateman

David A. Bateman, WSBA # 14262
7 Raina V. Wagner, WSBA # 45701
925 Fourth Ave., Suite 2900
8 Seattle, WA 98104
Tel: (206) 370-6682
9 Fax: (206) 370-6013
Email: [email protected]
10 Email: [email protected]
11 Attorneys for Claimant
Amazon.com, Inc.
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