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Update · 09:58 am AEST · 12 August 2026

Amazon suspends Australian seller's $8.5m business over algorithm decision

Amazon suspends Australian seller's $8.5m business over algorithm decision
Photograph: SMH business (AU)

The Australian Small Business Ombudsman says digital platform account shutdowns have become its fastest-growing complaint category, quadrupling to 48.3 per cent of new cases in the June quarter from 12 per cent a year earlier. Small businesses report their accounts being switched off entirely by algorithms with no warning or human oversight, cutting them off from customer details and photographs within seconds.

US inventor Jack Nekhala has lodged a complaint with the Australian Competition and Consumer Commission against Amazon after his seller account was deactivated on April 11, 2025. His Bed Scrunchie business turned over about $US6 million ($8.5 million) a year almost entirely through Amazon. Nekhala says Amazon provided no Australian investigation or notice and he is asking the ACCC to establish whether anyone in Australia assessed the decision or if it automatically followed a US block.

Amazon said the account was permanently suspended following multiple enforcement actions for policy violations, without providing further details, David Swan reports for SMH business (AU).

Shut down by algorithm: Small businesses suffer online nightmare Small businesses are being switched off by online algorithms with no apparent human oversight, the small business ombudsman’s office says. smh.com.au
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