Judge Issues Ruling on eBay and PayPal Antitrust... - Other News


Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Judge Issues Ruling on eBay and PayPal Antitrust Complaint

Judge Issues Ruling on eBay and PayPal Antitrust Complaint

Judge Issues Ruling on eBay and PayPal Antitrust Complaint

Several eBay sellers gathered together last year to file a class-action lawsuit against the online auction and shopping giant. Participants in the suit now have until January 27 to file an amended complaint. In a ruling addressing eBay´s motions to dismiss the case, the judge partially granted their request while simultaneously partially denying it. The lawsuit alleges the following, “While eBay lists purported alternative payment methods, eBay has through its intentional action made it so PayPal is the only viable option for sellers.” In addition, the plaintiffs complained took issue with eBay´s policy of collecting commissions fees on the seller´s shipping costs.

Charlotte Smith is the eBay seller who filed the original lawsuit against eBay back in 2010. Smith´s filing was inspired by eBay´s policy that coerces sellers into using its affiliated online payment service PayPal.

As per Smith´s complaint, eBay sellers are alleged to “effectively have and will continue to have no choice but to accept payment using only eBay owned PayPal, and as a result sellers are and will continue to be required to pay eBay through PayPal an additional fee up to 3% and .30USD per transaction. Defendant´s actions constitute an unlawful tying arrangement resulting in an impermissible restraint of trade, in violation of federal law.”

The federal law Smith is referring to is the antitrust law, which is in place in order to promote or maintain fair market competition by regulating all anti-competitive conduct demonstrated by companies.

Smith´s lawsuit made reference to several developments throughout eBay´s history that functioned to increasingly limit a seller´s ability to accept forms of payment other than PayPal. These include eBay´s ban on payments made via cash, money order and Google Checkout.

With the lawsuit, plaintiffs also sought relief from eBay charging “improper collection of shipping fees as part of final value fee.” Said policy is a major sore point with sellers. However, according to the judge, the plaintiffs had not alleged to not having consented to pay a final value fee to eBay. “Although leave to amend should be freely granted, in light of the facts of this case, the Court concludes that Plaintiffs would not be able to state a claim for conversion,” ruled the judge, as reported by the online news source eCommerce Bytes.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

MasterCard and Fred Segal Open Shop on the Strip

Posted: April 20, 2018

MasterCard and Fred Segal have opened Rock ‘n Roll Holy Land on Sunset Strip, an immersive exhibit giving people an insider’s view of the history of the Sunset Strip. The shop also puts a unique digital spin on window shopping using ... Continue reading
New Amex Centurion Lounge Opening in Denver

Posted: April 19, 2018

Are you a regular at Denver International Airport (DEN)? If so, you may want to check out the new Centurion Lounge when it opens next year. It’s stated to be the eleventh lounge in the Centurion line up. Offering airfield views and taking ... Continue reading
Crate and Barrel and Synchrony Bank to Offer New Credit Cards

Posted: April 18, 2018

Do you shop for furniture and household wares at Crate and Barrel? If so, you might be interested to know that the home furnishings retailer has inked a deal with Synchrony to offer customers not only new credit cards and financing ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!