eBay Users to Lose Their Right to Join Class Action Lawsuits

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

eBay Users to Lose Their Right to Join Class Action Lawsuits

By Sarah Pierce

Hey eBay users, listen up: you have until November 9 to opt out of a mandatory binding arbitration agreement that will take away your right to join a class action lawsuit against the company. The online auction behemoth also announced that eBay and its affiliates reserve the right to contact you through any means necessary, even if you incur charges for it – effectively taking away your right to sue for violations of the Telephone Consumer Protection Act (TCPA).

The new changes to eBay’s user agreement suggest the company is taking a tougher stance with its more than 100 million buyers and sellers by protecting itself from costly class action litigation. Forcing users to pursue claims individually through arbitration saves eBay a considerable amount of money and also dissuades users from bringing claims altogether, as it’s often not worth the time and expense for an individual person to sue a large company like eBay for a small monetary claim.

eBay is the latest major company to declare war on class action lawsuits following last year’s U.S. Supreme Court decision in AT&T Mobility vs. Concepcion that now allows businesses to force customers into arbitration in their user agreements.

“Companies generally prefer arbitration because settlements are limited and because professional arbitrators, whose fees are typically paid by the company, tend not to bite the hand that feeds,” explains David Lazarus of the Los Angeles Times (10/2/12).

But take heart, eBay users, because as Lazarus points out, it’s unusual for a company to give customers the chance to opt out of an arbitration (or “no-class action”) clause. Most companies present such provisions on a “take-it-or-leave-it” basis. (We’re looking at you, Microsoft and Sony.)

So how do you opt out of eBay’s “no class action lawsuit” arbitration clause?

According to eBay’s own “Opt-Out Procedure”:

You can choose to reject this Agreement to Arbitrate (“opt-out”) by mailing us a written opt-out notice (“Opt-Out Notice”).  For new eBay users, the Opt-Out Notice must be postmarked no later than 30 days after the date you accept the User Agreement for the first time.   If you are already a current eBay user and previously accepted the User Agreement prior to the introduction of this Agreement to Arbitrate, the Opt-Out Notice must be postmarked no later than November 9, 2012. You must mail the Opt-Out Notice to eBay Inc., c/o National Registered Agents, Inc., 2778 W. Shady Bend Lane, Lehi, UT 84043.

We also found this handy form letter to use for the eBay Opt-Out Notice in the eBay forum:

(add your name)
(add your address)
(add today’s date)
 
eBay Inc.
c/o National Registered Agents, Inc.
2778 W. Shady Bend Lane
Lehi, UT 84043
 
Dear eBay Inc.:
 
This is an opt-out notice. I do not agree to eBay’s Agreement to Arbitrate. I am writing this letter in accordance with the terms stated in the eBay User Agreement, which require that I express my rejection and include my name, address, user ID(s), and e-mail address(es) associated with my eBay account in a letter signed by me and postmarked by November 9, 2012. This opt-out notice applies to:
 
Name:
Address:
User ID(s):
E-mail address(es):
 
Regards,
(sign your name)

Updated October 3rd, 2012

All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions