How to Report Price Gouging on eBay

According to consumer complaints, some eBay sellers may be engaging in unethical price gouging practices in order to make a profit off of the coronavirus pandemic.

What is Price Gouging?

Quite the opposite of fake sales, price gouging is the practice of exploiting an emergency in order to charge consumers excessively inflated prices for necessities and other products. In the case of the coronavirus pandemic, price gouging may occur when retailers hoard products such as toilet paper, hand sanitizer, or face masks and then sell them at artificially inflated prices.

Is Price Gouging Against the Law?

Although there is no federal law prohibiting price gouging, most states have laws regarding the practice, restricting the amount that companies are allowed to inflate their prices. These laws are different depending on the state, and set different standards for the amount that retailers are allowed to increase their pricing during an emergency.

In some states, retailers may be allowed to increase prices by up to 10 percent, while in others they may be required to maintain the same prices that were set immediately before, or even a few months before the crisis. These laws may also govern which products are covered. In some states, only goods deemed as necessities are covered, while other states may apply the law more broadly. Attorney Generals of all states can pursue litigation against abusers.

Consumers wondering how to report price gouging may be able to research their individual state’s price gouging laws.

Additionally, the U.S. Attorney General has created a task force to focus on investigating potential instances of price gouging and product hoarding related to the coronavirus crisis and prosecute retailers who engage in the unethical practice. Retailers in several states have already received warnings, fines, or cease-and-desist letters regarding price gouging.

How to Report Price Gouging on eBay

EBay is an online marketplace where individuals and companies may sell products through auctions. According to at least one lawsuit against the company, retailers may be using the site to engage in price gouging. If you believe that you have been a victim of price gouging on eBay, you may be able to report the seller engaging in the practice.

According to eBay’s policies, inflated pricing is prohibited and may be reported through the site’s online portal. When reporting price gouging, victims may be required to fill out an online form describing the incident.

How Can You Avoid Price Gouging?

In order to avoid being taken advantage of by companies engaging in price gouging, consumers may want to compare prices from several retailers before deciding where to ultimately purchase their products. Additionally, shopping from trusted retailers rather than individual sellers may also help consumers get the best product for their money. Even though there may be incentive for consumers to hoard products such as masks, gloves, or toilet paper, this may also lead to an increase in future price inflation.

What Are Some Examples of Price Gouging on eBay?

According to a lawsuit filed against the online retail site by an Uber and Lyft driver who needed to purchase a face mask due to the risks associated with her job, she was charged an inflated price of almost 300 percent. Plaintiff Jeanette M. claims that an eBay retailer charged her $23.98 for a 2-pack of n95 masks, when these masks are usually sold for less than $9 at other retailers.

She claims in addition to the unethical actions of the seller, eBay may be encouraging this type of behavior. According to her, eBay takes a cut of each sale, meaning that the company may be incentivized to allow sellers to inflate their prices.

In addition to the alleged mask price inflation, Jeanette claims that retailers on the site are also inflating the prices of toilet paper, as well as cleaning products and disinfectants.

Other examples of price gouging from online retailers have included inflated pricing on gloves, hand sanitizer, and milk. Some items have been banned on eBay because of price gouging practices.

How to Join a Price Gouging Class Action Lawsuit

If you are a victim of price gouging from eBay sellers or other retailers, you may be able to pursue compensation for these excessive charges. In addition to potentially giving you information on how to report price gouging, an attorney may also be able to speak to you about other legal options.

Speaking to an experienced attorney about your case may be the first step towards joining or filing a class action price gouging lawsuit.

Jeanette’s EBay Price Gouging Lawsuit is Case No: 5:20-cv-03053, filed in the Northern District of California for the Division of San Jose.

Join in a Free eBay Coronavirus Price-Gouging Class Action Lawsuit Investigation

If you were charged exorbitant prices for products online, we invite you to join in our Coronavirus price-gouging class action lawsuit investigation. 

Get a Free Case Evaluation

This article is not legal advice. It is presented
for informational purposes only.