Fair Trading Policy

Overview of Fair Trading Policy

This Fair Trading Policy defines what are the fraudulent activities that sellers are not allowed to participate in. This is to inculcate professional and reliable seller behaviour so that we can boost the confidence and preserve the trust of shoppers for our platform.

Lazada have zero tolerance towards fraudulent behaviour. Depending on the severity of the policy violation, Lazada may take measures such as locking products, apply account restrictions and confiscate seller payments. We may also intercept or close any existing transactions to protect shoppers; Refunds and any other fees incurred will be imposed on the seller.

Fair Trading Policy - Non-Compliance Points Chart	Possible Consequences
(1) Fraudulent Dealing	Up to 48 points
(2) Off Platform Transactions	Up to 48 points
(3) Anti-Competitive Behaviour	Up to 16 points per incident
(4) Self Promotion/Seller buy own products	Up to 16 points
(5) Voucher and Subsidies Abuse	Up to 16 points per incident
(6) Fulfilment Fraud	Up to 48 points per incident
(7) Trading of Lazada Accounts	Up to 48 points
(8) Improper use of Lazada Platform Incentives (Lazada Bonus)	Removal from Lazada Bonus, Order Volume Limit restrictions and up to 48 points.

If you receive a notification for violating our policy and you would like to file appeal request, you may do so in the Growth Center.

(1) Fraudulent Dealing

Fraudulent dealing is a seller’s violation of Lazada rules and policies, by participating in fraudulent activities that allegedly infringes on the property rights or other legitimate rights and interests of others.

Listed below are is a non-exhaustive list of examples of fraud:

1. The seller obtains payment by publishing or providing goods, services or logistics information that are false or inconsistent with the description of the product listing

2. Defrauding other people's property by implementing fraudulent acts through third-party accounts

3. Sending a phishing link or Trojan virus information in order to defraud other people's property

4. Fraudulently using the name of Lazada and its affiliates or the Lazada customer service

Sellers who are found to have participated in fraudulent activities maybe issued up to 48 Non-Compliance points. This will result in an immediate termination of the seller’s account with Lazada.

If you receive a notification for violating our policy and you would like to file appeal request, you may do so in the Growth Center.

(2) Off Platform Transactions

Sellers are not allowed to induce buyers to conduct offline transactions. Offline transactions are transactions which originate from the Lazada platform, but are executed and completed outside of the Lazada platform. Orders which deviate from Lazada's assigned Logistics Partner or fulfilment process are also considered as off platform transactions.

Please refer to the Lazada’s Communication Guidelines for more information.

Sellers who are found and verified to have violated our platform rules, by inducing buyers to complete offline transactions, may be issued up to 2 Non-Compliance points, on a per product basis.

Examples:

1. A buyer adds a red T-shirt size M to cart. Seller realised that the item is out of stock. Seller initiates a conversation with buyer to inform that item is out of stock and offers the buyer the option to buy the same item from his shop (on another platform).

2. A buyer adds earphones to cart. Seller initiates a conversation with buyer and entice the buyer the option to purchase the earphones from his store (on another platform) that comes with discount or selling price that is lower than the advertised price on Lazada.

3. A seller posts his/her contact information on the PDP. Contact information is defined as mobile number, email address and/or any other modes of contact outside of Lazada platform.

4. A seller uses a different logistic Partner, shipping label and/or delivery method and not Lazada's assigned logistic partners to fulfil the order.

If you receive a notification for violating our policy and you would like to file appeal request, you may do so in the Growth Center.

(3) Anti-Competitive Behaviour

Lazada has always been committed to maintaining a fair and equitable ecommerce environment so that any seller and buyer, who chooses to transacts on Lazada, will not be disadvantaged. We will diligently and continuously monitor so as to protect the legitimate rights and interests of other users or platforms.

Anti-competitive behaviour or practices are business practices that prevent and/or reduce competition on Lazada.

Examples of anti-competitive behaviour includes, but is not limited to the following scenarios:

1. Competitor harm: The seller maliciously orders, maliciously evaluates, or maliciously complains to other sellers by itself or by using other member accounts, affecting the reputation and normal operation of other sellers.

Definitions:

Malicious order: refers to the seller's use of member accounts to place orders for other sellers, which affects the normal operation of other sellers, such as not paying for stocks.

Malicious evaluation: refers to the seller using member account to place orders for other sellers, maliciously giving bad reviews or evaluating the content does not match the facts.

Malicious Complaint: The seller complains to other sellers by himself or by using other member accounts. The complaint content lacks relevant basis, or the purpose of the complaint is improper. There is deliberate damage to the goodwill of the peer seller, the fraudulent operation of the seller or the deliberate attack on the legitimate operation of the peer seller happening.

Sellers who are found to have engaged in anti-competitive practices are deemed to be non-compliant with the Fair Trading Policy and may be issued up to 16 non-compliance points, per incident.

If you receive a notification for violating our policy and you would like to file appeal request, you may do so in the Growth Center.

(4) Self-Promotion / Seller Order own Products

Sellers are not allowed to purchase their own products with intentions to increase their performance, in one way or another, on Lazada platform. Any seller who is found to have ordered own products, or in a way or another collaborated with someone else to order own products, to intentionally increase performance on Lazada may be issued up to 2 non-compliance points, per incident.

Listed below are examples of such behaviour, but is not limited to the following scenarios:

1. A seller orders his/her own products and submit positive reviews for own products and/or to improve its rankings

2. A seller orders his/her own products to increase total order volume or increase flash sales ranking

If you receive a notification for violating our policy and you would like to file appeal request, you may do so in the Growth Center.

(5) Unlawful Profit Making Behaviour - Voucher and Subsidies Abuse

Voucher and subsidies abuse refers to the seller’s violation of Lazada rules and allegedly infringing on the property rights or other legitimate rights and interests of others. 

Examples of sellers abusing vouchers and/or subsidies includes, but is not limited to the following scenarios:

1. Using illegal means to defraud the platform voucher, subsidies etc

2. The seller violates the Lazada platform policies and illegally profits through other means

Sellers who are found to have engaged the abovementioned unlawful profit making behaviour are deemed to be non-compliant with the Fair Trading Policy and will be issued up to 16 non-compliance points, per incident.

If you receive a notification for violating our policy and you would like to file appeal request, you may do so in the Growth Center.

(6) Fulfilment Fraud

Fulfilment fraud refers to the situations where sellers deliberately create false shipments to cheat buyers. Lazada does not tolerate fraudulent seller behaviour and sellers who are found to have participated in fraudulent behaviour will be handled with the non-compliance actions laid out under the Non-Compliance Points.

If you receive a notification for violating our policy and you would like to file appeal request, you may do so in the Growth Center.

Some actions (but not limited to the following) that are considered Fulfilment Fraud

1. Tracking Misrepresentation

During the specified delivery period, the seller's shipping order number is invalid or effective but is not related to the order transaction, misleading the buyer or the Lazada platform. For example, to avoid the transaction without selling penalties, fill in the invalid freight order number or the freight order number that is obviously unrelated to the order transaction.

Examples of Tracking Misrepresentation are as listed but are not limited to the following:

a) Invalid shipping tracking reference number

b) The buyer and seller are maliciously colluded, and in the absence of real order transactions, misleading the Lazada platform through misappropriation of false shipments

c) Valid shipping tracking reference number but given tracking number has no obvious relationship with the order transaction

d) The seller induces the buyer to confirm the receipt in advance when the goods are not received

2. Sending of empty parcels and/or unrelated items to the buyer

This are situations when sellers send product(s) other than the exact product that was ordered by the buyer.

Examples of sending unrelated items to buyers (but are not limited to the following):

a. Buyer orders an iPhone 8 from seller. Upon delivery, the buyer received an empty box.

b. Buyer orders a Rayban sunglasses. Upon delivery, the buyer received OEM kids coloured sunglasses.

Consequences for sellers who are found to have committed Fulfilment Fraud

Lazada may issue non-compliance points and/or directly deactivate the account depending on severity of the seller's non-complying actions. You may refer to the Non-Compliance Points Chart below for more information:

Fulfilment Fraud – Seller Non-Compliance Points Chart	Possible Consequences
(1) Tracking Misrepresentation	Up to 2 points, per incident
(2) Sending of Empty Parcels/Unrelated Items to buyers wilfully	Up to 48 points, per incident

If you receive a notification for violating our policy and you would like to file appeal request, you may do so in the Growth Center.

(7) Trading of Lazada Seller Accounts

Lazada promotes entrepreneurship and is committed to help all businesses grow on our platform. There are online training courses and marketing tools to help promote and grow the online store amidst the stiff e-commerce competition.

Sellers who wish to become a Lazada seller will need to register their account here. Sellers are required to have their Business Registration supporting documents and valid local warehouse address before signing up. Click here for more info.

We respect the fair business growth and competition, therefore we do not advocate trading of seller accounts or any unfair, anti-competitive business practices on our platform.

Sellers are not allowed to purchase ready-made Lazada seller accounts. Sellers are also strictly not allowed to create Lazada seller accounts and sell or trade. Seller accounts verified to have been violated the above guidelines will be deactivated immediately.

If you have been deactivated and would like to file an appeal, please follow the appeal instructions in the email notification.

(8) Improper use of Lazada Platform Incentives (Lazada Bonus)

Lazada provides various forms of Lazada Platform Incentives (LPI) for sellers and buyers in the form of vouchers, discounts and cashback mechanisms to create a great shopping experience. LPI incentivizes and attracts buyers to purchase products at seller stores at competitive prices. To benefit more buyers on the platform, Lazada continuously calibrates these mechanisms and partner sellers to equitably disburse LPI more effectively.