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A few weeks ago I discussed an article about Amazon banning members for making too many returns. My stance on that was I wanted more info but I felt it would be better if Amazon had a hard line number so that members could know what lines were crossed. Well it turns out there was more to the story. A few of those members will be spending time behind bars as a result of fraud.

Erin and Leah Finan were making money by reporting their electronic devices damaged to Amazon. Amazon would send a replacement in which Erin and Leah would sell to a third party. This scam resulted in about 2.1 million in losses for Amazon.

After learning more about this fraud case I have a better understanding why Amazon have been banning members for making too many returns. My personal experiences with Amazon shows they do a good job (for the most part) with handling returns. They make the process easy and have calmed the concerns with many of us with choosing an online retailer vs a brick and mortar. With that said I still stand by my point that Amazon should post a hard line limit on the number of returns that will earn a person a ban. This will provide transparency so that people can have a visual line of what will get them banned.

What are your thoughts about the Amazon fraud case and Amazon banning members?

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