SAN JOSE (CN) – A federal judge granted final approval to a $1.2 million class action settlement accusing eBay of failing to refund listing fees after it delists unsold items.
Sellers are charged $25 to list items for sale under eBay’s “Buy It Now” feature.
Luis Rosado says he listed his car on eBay and that a prospective buyer clicked the “Buy It Now” button, but did not complete the transaction. The car was immediately delisted though it didn’t sell, costing him another fee to relist the next day.
Rosado says he requested a refund of the original listing fee, but eBay provided him a credit of just $4.25.
Rosado sued in July 2012, alleging violations of California’s False Advertising Law and the Consumer Legal Remedies Act.
EBay sought dismissal in December 2013, claiming that its user agreement states that “insertion fees and optional fees are charged at the time of the listing and are nonrefundable.”
U.S. District Judge Edward Davila ruled in June 2014 that Rosado could argue that eBay’s user agreement – regarding a user who “commits” to buying an item – is misleading and vague.
The parties negotiated a settlement in June 2015 and Davila granting preliminary approval in September.
The settlement provides for a $1.2 million “non-reversionary gross settlement fund,” for settlement payments in cash or eBay credit, an incentive award for the class representative, expenses of $13,050.04 and attorneys’ fees of $300,000.
Davila granted the plaintiff’s motion for final approval on June 21.
- Irvine Attorney Pleads|Guilty to Wire Fraud
- Leg-Hold Traps Illegal, Humane Society Says