Legal Question in Technology Law in California

Problem with Ebay

I recently had a problem with Ebay. First off, i am a webmaster and maintain multiple Ebay accounts, one of which is in good standing and powerseller status. The second account followed a similar web model and was setup Aug. 8, 2006. It was abruptly shutdown Aug. 31, 2006 stating that it violated policy. We were not warned about our account violation nor given an opportunity to fix the problem before it was shutdown. I contacted ebay several times attempting to find out the reason for the account suspension and was told that they could not help me several times. They said I would have to write in to find out the reason for suspension. Meanwhile, the account that I setup on ebay is down and losing money. Between 8-8-06 and 8-31-06 we sold 11 items and were on pace to sell more. We simply wanted to fix the problem and get up and running again, but we are receiving no help or support from Ebay. I believe this is wrong and that Ebay should not be able to shutdown accounts without warning. This is people's business and livelyhood they are interfering with. There are several other with the same problem http://www.43things.com/things/people/193389

Do we have a case? This is not fair to us, the consumer.


Asked on 9/01/06, 10:55 am

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Problem with Ebay

eBay has a new policy of no warning and zero tolerance for certain technical violations of its rules. As I understand it, these shut-downs are often only one-week suspensions.

I can't tell you what rule you violated, but I do know that one rule they're enforcing is the prohibition against using a related account to bolster the bidding on the main account.

Your starting point would be to read their rules carefully, paying particular attention to those covering multiple accounts and/or bidding on your own lots.

Yes, they can do it - there's been some criticizm in the trade press, and this new policy is "under review," but they can shut you down and de-list your items without notice, and owe no damages.

If eBay were shown to have shut down an account with absolutely no violation of any of its rules, my answer might be different, especially if eBay acted from malice and without any justification; but I doubt that's the case.

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Answered on 9/01/06, 12:22 pm
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Problem with Ebay

When you signed up for eBay you agreed to certain terms and thereby entered into a contract with the company. Generally speaking, if the company's actions comply with those terms and violate no laws there is little you can do. Actions that are consistent with the agreement between you and eBay are allowed, even if you consider them unfair.

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Answered on 9/01/06, 2:56 pm


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