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Late last week, the parties in the class action lawsuit accusing eBay Inc. of unfairly taking advantage of the “Buy It Now” option proposed a settlement to end the action.
Under the terms of the proposed class action settlement, eBay will pay up to $1.2 million and claimants will receive between $5 and $15 each.
Lead plaintiff Luis Rosado alleged in his class action lawsuit that when he listed a car to sell on eBay, the company pocketed the fee associated with the “Buy It Now” option on the online seller’s marketplace. According to the class action lawsuit, which was filed in July of 2012, the eBay “Buy It Now” policy automatically and permanently removes items from the online listing, even if the buyer does not go through with the purchase. The plaintiff alleged in his class action that eBay unfairly took the fee from these incomplete sales and removed the items before they were actually sold.
EBay attempted to dismiss the class action lawsuit three times, arguing that its no-refund and listing policies are listed in the terms of service the eBay sellers agree to. U.S. District Judge Edward J. Davila refused to dismiss the class action lawsuit as recently as July 2014, rejecting eBay’s argument that it clearly explained the “Buy It Now” policies in its user agreements.
Those who will receive a pay out include those who sold or attempted to sell on eBay who lost their listing fees when a buyer clicked on “Buy It Now,” but never completed the sale and who also were not reimbursed by eBay. According to the plaintiff, the sellers’ lost listing fees will likely be covered or exceeded by the $5 to $15 checks under the terms of the proposed eBay class action settlement. Alternatively, if the number of claimants is not enough to exhaust at least 25 percent of the settlement funds, the plaintiff proposed that a larger amount be awarded to Class Members to reach that minimum. Additionally, funds that are not claimed will be awarded to Class Members as eBay credits for $50.
In documents filed with the court last week, the proposed Class admitted that it would have faced a number of issues remained if the case had gone through litigation, specifically that eBay sellers have the option to require immediate payment under the “Buy It Now” policy and when that option is selected the listing does not disappear until payment has been processed.
Rosado is represented by Jordan L. Lurie, Tarek H. Zohdy and Cody R. Padgett of Capstone Law APC and D.J. Morgado of Feldman Fox & Morgado PA.
The eBay Buy It Now Class Action Lawsuit is Luis Rosado v. eBay Inc., Case No. 5:12-cv-04005, in the U.S. District Court for the Northern District of California.
UPDATE: Claim filing instructions for the eBay Buy It Now class action settlement are now available! Click here or visit www.eBayBuyItNowClassAction.com for details.
UPDATE 2: On Jan. 8, 2016, the plaintiffs filed a motion seeking final approval of the eBay Buy It Now class action settlement.
UPDATE 3: On Sept. 23, 2016, Top Class Actions readers started receiving checks in the mail worth as much as $15 from the eBay “Buy It Now” class action settlement. Congratulations to all our viewers who filed a Claim Form and got PAID!
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26 thoughts onSettlement Reached in eBay Buy It Now Class Action Lawsuit
UPDATE 2: On Jan. 8, 2016, the plaintiffs filed a motion seeking final approval of the eBay Buy It Now class action settlement.
UPDATE: Claim filing instructions for the eBay Buy It Now class action settlement are now available! Click here or visit http://www.eBayBuyItNowClassAction.com for details.
This has actually happened to me several times. Pay Pal also issued a full refund to a buyer without them sending a laptop back. Guess what? They got it free and I was out the shipping as well. The buyer always wins. E-Bay is going the way of the dinosaur for the little guys. Your listings will not even be seen unless you pay the extra 2-5% for premium listings now. This is 9% for Ebay plus the premium fees, call them 3% at the bottom of the scale, so 12% plus 3% for Pay Pal = 15%!!! Sure you can build this into your selling price, but with Pay Pal fees on shipping as well, it is not long before you are priced out of the market. I closed my store, changed bank accounts, and unsubscribed from everything EBay because they wanted to charge me another years worth of store fees if I closed it. I have been a member in good standing since 2005 and they let two people leave negative feedback because of damage during shipping which was not my fault. They refused to retract it. My sales went straight to 0 dollars. I really don’t mean to bash EBay, but they are not treating their sellers very well. It seems like the only ones making money are those who work for EBay.
Been screwed by ebay many many times, form please, and YES I can prove my part!
I bet if you pull up my ebay account you will see that my total sales for 6 years is in excess of 80,000 and yep Im white and middle class…If you dont think that Ebay has screwed me out of my fees, youre crazy. Sterotype me all you want, Im sure your race has one too, I do check the site. Bought an Acura cl coupe once that I put 5 transmissions in and Honda knew there was an issue but never did a thing about it…It was a problem with their hodge podge of oil pumps not being strong enough to properly deliver oil to the transmission..still waiting for that one to pop up…so yeah, instead of sitting back and taking it like you do, I search and of the many times these mega corporations who screwed me over finally get caught doing this back handed crap and I have the opportunity to join and get some of my hard earned money back..the kind that comes from work and not from a government check….I join. If you have such a comfort zone with being screwed by big business and it doesnt bother you, then sit back and enjoy. Even if these people look for the ones with no proof, big deal…I say if they have used the products and the product wronged the buyers market and monies is recovered for that market, then so be it…let them have it. Its already been set aside and if the true owners dont come forward, it still has to be distributed. Its more about making these companies be accountable for the crap they put out or the treatment to the market they are exhibiting, than if a few people are getting a couple of dollars they technically are not owed…WHAT about the big business that are getting MILLIONS from the consumers and doing it unjustly while providing an inferior product or service…use your head and look at the big picture.
where do you get the claim form
Yea I agree. Please be quiet if you dont know what youre talking about. I was selling things on ebay, and quite a few times the people would hit the buy button, and not complete the purchase. This is exactly why. You get charged a final value fee, and it has to go into a dispute for weeks. Then they make a judgement, and by then youre seller rating drops This is a legitimate complaint. Im glad they got sued. Oh yea, wheres the forms???
Id like to see that proof too. Millions of people USE these products….thats why they are class action suits….Sounds like YOU have nothing better to do than sit at a computer and stereotype people. Idiot.
Can you prove that all these people are WHITE and middle class? If so, I would like to see your documentation.
Where are the claim forms?