Seller Sues eBay Over Unpaid-Items Relisting Policy
Luis Rosado says he tried to sell a car on eBay Motors. He also paid listing upgrade fees. A deadbeat buyer ended his “unprotected listing” costing him more fees.
This story has been circulating around the net for a few days. It is about eBay Motors where a seller tried to sell his car several times and encountered deadbeat buyers each time.
“Luis Rosado says he tried to sell a car on eBay Motors: “Mr. Rosado first listed his vehicle for sale on February 8, 2011; he was charged a listing fee of $36 for 21 days and a picture fee of $0.25. “Because Mr. Rosado’s vehicle failed to sell, he re-listed it on March 1, 2011, again paying a $36 listing fee for 21 days. “On March 8, 2011, the seventh day with fourteen (14) days remaining, a buyer indicated acceptance of plaintiff’s sale of the vehicle by clicking on the ‘Buy it Now’ button.
As a result, eBay automatically delisted the vehicle, thus preventing any other person from buying it. “However, instead of purchasing the vehicle by depositing funds into plaintiff’s PayPal account, the buyer requested that plaintiff cash a certified check for more than the purchase price of the vehicle and send the difference back to the buyer.
“Shortly thereafter, eBay sent an email to plaintiff informing him that the buyer was proposing a fraudulent transaction. eBay’s email ordered Mr. Rosado not to complete the transaction, stating, ‘Please don’t complete the transaction and don’t ship the item. You may have received an email saying the buyer has paid. However, that’s probably a fake message.’ … Consequently, Mr. Rosado paid another $36 to list his car for a third time.
“When Mr. Rosado requested a refund on March 22, 2011, eBay agreed to provide a credit of $4.25, a small fraction of the fees he had paid.”
It really boils down to eBay Motors House of Cards – and the old saying is – the House Always Wins!
eBay Motors Listing Upgrade Fees ~ Click To Expand
If you are a private individual and want to list your car on eBay Motors for sale the base listing is FREE. And if you have what eBay calls a “Successful Sale” eBay charges a $125 Transaction Service Fee. Basically the eBay lingo for Successful Sale is when someone clicks the BIN Button or your auction ends with bids over an set reserve a seller has specified when listing. This does not count listing upgrades such as picture services fees, reserve fees, extended duration fees, etc.
Whether the seller gets paid is not eBay’s concern. But they sure grabs those fees! A seller can file an unpaid item strike against a buyer and get a TSF refund in about 10 days. That is if thee seller knows how to do it.
I’m not really sure where the $36 figure comes from but it must have been last years extended duration fee. eBay Motors fee schedule for vehicles has changed since Mr. Rosado tried to sell his car on eBay Motors. The 1st 4 listings in a calendar year were always free (private seller) with a TSF if the car sold.
The reason i often refer to eBay Motors as a house of cards is, a private seller can not request an immediate deposit on an eBay Motors BUY-IT-NOW listing. I know this for a fact, but the policy could have changed since then. But i remember listing an old Chrysler i own on eBay Motors a year ago and was unable to select an immediate deposit on my listing.
I had managed an associates eBay Motors Dealer Account and all we did was list with the fixed price format. We also collected an immediate deposit of $300 with PayPal to keep the sport bidders and deadbeats from clicking our listings. It made perfect sense to request an immediate deposit. Not only did it keep the deadbeats away, but when someone bought a car they had $$ invested in the transaction. We made it very clear that there were NO Refunds on deposits if the buyer changed his mind and didn’t complete the transaction.
I also have read stories on eBay’s Motors Forums where other private sellers had complained they couldn’t request an immediate deposit, but the car dealers do. It just seems to me that that word FREE does not compute in eBay Land. It’s that TSF that they are after. I’m sure eBay has a good idea what’s going on behind the scenes. Click = $125. Relist again for FREE and Click = $125. And around and around we go, whether you have a successful sale nobody knows. But it’s successful to eBay..
BTW: The Transaction Service Fee (TSF) is the legal term for eBay cores Final Value Fee (FVF) where most state motor vehicle laws requires a seller to be licensed if they charge a commission from the sale.
Ina Steiner of eCommerceBytes.com reports eBay is considering giving buyers time to back out of a transaction. Read about it here.
Update 10/14/2015: This lawsuit against eBay Inc has been settled.
NOTICE OF CLASS ACTION SETTLEMENT
LUIS ROSADO V. EBAY INC.
IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA
CASE NO. 5:12-CV-04005 EJD. Click Here for the settlement claims page.