EBay Agrees to Settle Class Action for $4.75 Million
Earlier this month, EBay Inc. agreed to pay $4.75 million to settle an electronics manufacturer’s class action lawsuit accusing the retail giant of breaching its contract with manufacturers selling in its online store. The lawsuit alleged that eBay’s Feature Plus service, which promised to place listing in a prominent “Featured Items” section of its page for a fee, did not deliver on its promise to give priority treatment to those willing to pay for it.
Specifically, the plaintiff, Custom LED LLC, explained that even after paying $39.95 for the service, its products did not appear on the first page of 50 items. Additionally, the lawsuit alleged that the service only worked when customers searched using the “Best Match” filter, but not when sorting by price, time, or location. Lastly, the complaint alleged that the service only worked for items listed in eBay Motors categories.
Although eBay has denied the allegations, it has agreed to settle the case with all U.S. eBay customers who listed items using Feature Plus from January 23, 2008 to the present.