eBay Settles ‘Good ‘Til Cancelled’ Class Action Lawsuit for $6.4M

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According to court documents filed Thursday in California federal court, eBay Inc. has agreed to pay $6.4 million to settle a class action lawsuit alleging the company charged sellers with recurring listing fees that were not included in eBay’s disclosures.

The eBay class action lawsuit alleges the “Good ‘Til Cancelled” designation suggests an indefinite listing period and that eBay was not permitted to charge recurring listing fees under the terms of its contracts and disclosures. eBay denies any wrongdoing or liability but agreed to settle the class action lawsuit to avoid the cost and risk of continued litigation.

The parties have asked a judge to preliminarily approve the eBay class action settlement, a deal which they say “is the result of hard-fought litigation and arms-length negotiation overseen by two mediators well versed in high-stakes class action litigation.”

Approximately $4.5 million of the class action settlement fund will be distributed to eligible Class Members, an amount which the parties claim “provides fair compensation to the Class, in line with the approved settlements in other class actions involving eBay’s selling fees and features.”

Class Members of the proposed class action settlement include “all natural persons and entities who are United States residents and who (1) placed GTC Listings on eBay that commenced during the Class Period, and (2) were charged Disputed Fees.” For Stores Listings, the Class Period is March 30, 2010 to June 19, 2012. For Core Listings and Motors Listings, the Class Period is Sept. 16, 2008 to June 19, 2012.

Under the terms of the Good Til Cancelled class action settlement, eBay will provide a partial reimbursement of the disputed fees to eligible Class Members. The amount each Class Member will receive will be calculated based on eBay’s records and will be based on the percentage of disputed fees that the Class Member paid. It is estimated that each Class Member will be reimbursed for approximately 9 percent of the disputed fees they paid during the Class Period.

An estimated 1.2 million sellers will be eligible Class Members of the eBay settlement. If the Good Til Cancelled settlement is approved, Class Members will automatically receive a payment from the class action settlement. Class Members with active eBay accounts will receive an account credit (unless they request a payment by check) and Class Members without an active eBay account will receive a check.

More information about the eBay Good Til Cancelled class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated

The Class is represented by Keith R. Verges, Parker D. Young and Raymond E. Walker of Figari and Davenport LLP, Vera Brooks of Thompson & Brooks, and Shawn T. Leuthold.

The eBay Good ‘Til Cancelled Class Action Lawsuit is Noll, et al. v. eBay Inc., et al., Case No. 5:11-cv-04585, in the U.S. District Court for the Northern District of California.

UPDATE: The eBay Good Til Cancelled class action settlement was preliminarily approved on Jan. 29, 2015. To learn more about the eBay settlement, click here or visit www.eBayGoodTilCancelledClassAction.com.