Non-Compliance Points Policy
Overview of Non-Compliance Points
What do Non-Compliance Points do?
What is a non-compliant action?
Seller Non-Compliance Points Chart |
Possible Consequences |
Product Locked + up to 48 points |
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Product Locked + up to 48 points |
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Product Locked + up to 2 points |
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Up to 48 points |
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Up to 48 points |
Consequences of Sellers’ Non-Compliance Actions
What actions will a seller account face?
When you have accumulated 12 non-compliance points and above, your seller account will face certain restrictions as you reach certain thresholds:
Milestone |
Penalty |
Description |
12 points |
Restricted from listing new products for 7 calendar days Restricted from using Sponsored Discovery for 7 calendar days. |
Products are not editable. You may delete the product listing and update stock level. Seller account will also be blacklisted from adopting Sponsored Discovery for 7 days. |
24 points |
Restricted from listing new products and limited traffic for 14 calendar days Restricted from using Sponsored Discovery for 14 calendar days. |
Products are not editable. You may delete the product listing and update stock level. Product are visible but not searchable. Products are visible in seller’s store. Seller account will also be blacklisted from adopting Sponsored Discovery for 14 days. |
36 points |
Restricted from listing new products and all products deactivated for 21 calendar days Restricted from using Sponsored Discovery for 21 calendar days. |
Products are not editable. You may delete the product listing and update stock level. All products are not visible in seller’s store and not searchable. Seller account will also be blacklisted from adopting Sponsored Discovery for 21 days. |
48 points |
Seller account will be deactivated |
Store will be removed from Lazada. |
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.
Points are refreshed every 365 days. Termination is final.
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.
In cases of improved performance from seller's end, as well as the absence of reoffending behavior over a period of time, Lazada may decide to revoke the non-compliance points of sellers earlier than the stated 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 Policy Compliance page.
What is the appeal validity period?
The period where sellers will be able to appeal their policy violations is 60 days.
Any deactivated sellers has up to 30 days to file an appeal on their 48 NCP violation before their access to Account Health on ASC is removed.
Sellers will no longer be able to appeal on a violation past the appeal validity period. In this case, non-compliance points will remain with the seller for 365 days before it refreshes.
What happens to my payment when I get terminated?
Scenario |
Status of Payment |
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. |
Sellers who accumulate 48 non-compliance points (for counterfeit products) |
Lazada will release payments after deduction of the required amounts to refund customers. |
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. |
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. |
