Consequences of Sellers’ Non-Compliance Actions

What actions will a seller account face?
Accumulation of non-compliance points will potentially move you to the penalty milestones and result in account restrictions. 

A seller will only receive up to 16 non-compliance points within 7 calendar days, except for Sellers who are issued with 48 non-compliance points.

A seller’s account will be deactivated once he accumulates 48 non-compliance points or more. Depending on the severity of a non-compliant action, Lazada may decide to deactivate seller accounts immediately even if the seller has not accumulated the maximum number of non-compliance points.
Please refer to Overview of Non-Compliance Points for more information

How often are the points levied?
Lazada tracks non-compliant actions daily. All non-compliance points will also be updated in a seller’s account daily.

Does Lazada reset the points?
Lazada will reset a seller’s non-compliance points every 365 days, beginning from the date the non-compliance point was issued.A seller account termination, due to an issuance of 48 or more non-compliance points, is final. A terminated seller account will not be reactivated after 365 days.

How will the seller be notified of his/her non-compliance?
An email will be sent to the seller to notify of their non-compliance action and consequences. This will also be reflected in the seller’s account under Growth Center
If you have received a notification that you had violated our policy and you would like to file appeal request, you may do so in the Growth Center.

What is the appeal validity period?

All active have 60 days to appeal on their policy violation (with the exception of IPR policy violation of 14 days).

For deactivated sellers, there will be a period of 30 days where sellers can appeal before their access to ASC is removed.

Sellers will no longer be able to appeal on a violation past the appeal validity period. Non-compliance points will remain with sellers for 365 days before it refreshes.

What if I do not agree with my policy violation?
You may raise an appeal in Growth Center within 60 calendar days* if you do not agree with the policy violation record. Please prepare supporting documents whenever necessary to help us review your request.

*Sellers have to raise an appeal for Intellectual Property Rights policy violations within 14 calendar days.

Compliance point can be seen in my record but are grey out.

It means that Non Compliance Point were attributed to you but after further evaluation these have been revoked. They would sill appear in your record but as they are grey out they will not be taken into consideration as demerit point.

What happens to my payment when I get terminated?

Lazada have zero tolerance towards fraudulent behaviour. Payments may be withheld for some terminated sellers.

	Scenario	Status of Payment
1	Sellers who accumulate 48 non-compliance points (for reasons other than fraud)	Lazada will release payments after deduction of the required amounts to refund customers.
2	Sellers who accumulate 48 non-compliance points (for counterfeit products)	Lazada will release payments after deduction of the required amounts to refund customers (for a specified period of time).
3	Sellers who accumulate 48 non-compliance points (for infringement of Prohibited and Controlled Items policy)	Lazada will release payments after deduction of the required amounts to refund customers. Exception: If we determine the violation to be of a very serious nature, such as listing of narcotics or firearms, we reserve the right to confiscate all proceeds in the Seller Account.
4	Sellers whose accounts are terminated due to fraudulent behaviour	Lazada will withhold payments from Sellers’ accounts across all countries pending completion of the investigation. If the investigation concludes that there is any type of fraud by the Sellers, the proceeds in all of the Sellers’ accounts across all countries will be confiscated. Please note that Lazada has a zero-tolerance policy towards fraud of any kind by sellers.

Updated on 7th April 2022