Terms of Services :: New Shopify Owners Beware :: Lawsuit

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New Member
2 0 6

Up until recently, my business partner and I have loved using the Shopify platform. My partner and I come from a background of eCom and Fashion, launching a company together via Shopify a few months ago. But just when all is going well, sales growing and buzz trending, Shopify's "Risk" team hit our shop with a "HOLD", shutting down our website (without any notifications, emails, dashboard messages, etc) and withholding all payments from our customers. Now unless this has happened to you, it probably doesn't mean anything YET, but it will so keep reading, and seriously consider about moving to a new platform other than Shopify before they do the same.

 

So we started digging deeper into the issue and what this "hold" meant. We emailed and called Shopify's customer support "Gurus" to learn more. Apparently there is a False/Positive issue going around with Shopify where their Risk team can flag any store, falsely accusing a store as high risk, and making them having to pay more per month. Shopify told us we couldn't use their standard Shopify Payments Gateway (which comes with your membership), and instead that we must transfer to another provider, allowing Shopify to still earn the 2% per transaction, and making us, the business owners, having to pay more since we must now use another payment provider to accept credit cards for our customers during checkout.

 

Furthermore, researching on Google and Shopify's community forum, this has happened A LOT to new and growing businesses on Shopify. They flag a business, which according to their Terms of Service, are high risk. But if you actually read Shopify's TOS, these "high risk" businesses are classified as super shady shops, often selling harmful or illegal products. But that wasn't the case for us. We are a fashion brand selling clothing. My partner and i have spent time building ecom and fashion businesses, most recently Jet.com and other companies in New York City. Our company abides to all rules, legalities, state filings, business requirements, etc, which yours probably does to, but beware that Shopify may randomly send you a message telling you your shop is High Risk as well.

 

What is unfortunate is this terrible customer experience from Shopify and it’s Gurus. It is enough to make us move platforms, and unfortunate for Shopify as they lose yet another customer.

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Excursionist
18 0 3

I do not know your case here so hard to comment, but from what you writing it seems very special and not acceptable. I guess you should have some warnings and explaining from Shopify as they can not just shut down peoples hard work if that is the case here.

Anyway it would be good if Shopify come on and clear out this terms for others to know.

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New Member
1 0 1

Similar has happened on one of our shopify stores.  They are asking for authorisation from two ip holders of products we sell.  We buy through an authorised wholesaler so the ip holders won't supply us with docs (as we don't deal with them directly).  They won't accept invoices outlining the supply source along with documents that show the wholesaler is authorised.  They have had no ip complaint, there are loads of brands on this site and they have picked on two that they've heard of without justification of any sort.

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New Member
1 0 2

To ALL,

 

We are having the same issue. We switched to shopify payments due to the extra 2% they were charging for the use of authorize.net. We immediately switched and were put on hold. Shopify payments is hold with 70,000 dollars of our money for 3 weeks. We have provided every form of documentation as we are a distributors that ships from our factory. They do not understand our business model at all! We are still on hold and the "guru" cannot help in anyway. You can not complain, call, email or get anyone to respond. Several of the guru's have agreed that they can do nothing. We are speaking to our attorneys to address this issue. What is worst is that we spend over 6-8 months learning the system and put 10,000 work of labor at the new website only to find out that they are crooks. We will be suing for sure regardless of the outcome.

 

 

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New Member
1 0 3
THANK YOU FOR SPEAKING UP ON THIS UNACCEPTABLE ISSUE!!!!
This has happened to me twice and I had to eventually close down the store completely because of it. I got “scammed” on EVO Payments and refused to use another service.
This is a horrible thing that they can do and it sucks.
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Shopify Partner
1 0 2
Hey how are you doing fellas. They just did the same thing to me. I didn’t even start selling on the store yet and they send me an email telling me I won’t be able to use shopify payments anymore because my business is considered as a high risk.... .
I want to sue them. For what reason can I sue them!
Thanks
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Tourist
2 0 2
You know, I have been having troubles with Shopify too. They can freeze our service for as many days as they decide to, and don't owe us, their clients, anything! And this is written on the Terms, however it seems totally illegal to me that a Company can decide "we'll not deliver you the service for which you pay for, and we don't owe you anything back" - nor refund, nor credit, no liability. IT DOESN'T EXIST! All Countries have Constitutions and Laws to defend consumers. And for sure Shopify is not beyond them, even though its Billionaire owner.

I am ecen thinking about start writing inquiries to all stores "powered by Shopify" to discover whether they also have this kind of trouble...

Please, tell me, @Chris_Ramirez, do you really SELL (or sold) through Shopify? Was it at any moment worthy for you? Or in the end will we discover this whole Shopify thing is, after all, a huge well established web scam like so many others?
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Tourist
2 0 2
They always "clear" things out, these so-called Shopify "gurus", @terjeG, in a way that we don't have what to do or how to defend or protect ourselves. They froze my store accusing me of abusive prices on pandemic items, seeing I always use their suggested price. Then I asked them to unfreeze it so that I could show them the accusation was improved and they took so many days to answer my request that now I need to pay the next monthly bill so that I can access the store. I complained that it was paid when they froze it and asked for an extension - a credit - for the period during which they kept it frozen. Denied. Refund? "Shopify don't give refunds". Even if they are wrong. Even if you don't feel satisfied with the service. There's no Customer satisfaction policy AT ALL! They charge you and decide arbitrarily what they want to do. And we, their clients, can just shut our mouths and accept it. I even needed to pay just to enter their system and cancel a storr, seeing they told me I couldn't ask for cancellation through Support ticket, I needed to enter the system to do it. They are totally unreasonable and I am feeling angry and totally frustrated to have started anything on this damned Shopify platform in which I have only spent money and haven't any profit.
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Excursionist
14 0 6

@Chris_Ramirez This happened to me and they did not refund or pay the money from my orders, they just kept it and refused to address the issue. I have tried to contact them but I keep getting told to contact the risk team (which does not have an email or a number). Someone need to just sue them to make them understand what they are costing business owners. 

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