eBay Asks for More Time in Class Action Suit

Grievance alleges PayPal requirement violates antitrust laws.

by Auctiva.com staff writer
- Jun 24, 2010

eBay has asked a Detroit court for more time to respond to a class-action suit that alleges the company's payments policy is monopolistic.

The suit was filed April 12 on behalf of six eBay sellers, who say eBay's requirement that sellers use PayPal, an eBay-owned company, as their payment method violates antitrust laws. The sellers are seeking to change eBay's policy. They're also seeking damages for an undisclosed amount.

Last week, the court filed in favor of the sellers after representatives from eBay failed to respond to the grievance.

The court issued a binding default judgment in favor of the plaintiffs, noting that eBay did not respond within the 30-day period allowed. "It was 62 days, and they still hadn't responded," reports Peter Macuga, the lawyer representing the sellers.

However, eBay is now asking the court to overturn its decision and grant it a 14-day extension to respond to the suit, saying it did not ignore the complaint.

"eBay and PayPal did not willfully default," eBay notes in its court filing. "Rather, the parties were engaged in a dialogue and negotiations, and at no time had plaintiffs ever indicated their intention to seek entries of default."

About the Author

Auctiva staff writers constantly monitor trends and best practices of those selling on eBay and elsewhere online. They attend relevant training seminars and trade shows and regularly discuss the market with PowerSellers and other market experts.

Other Entries by this Author

Follow Us