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eBay Proxy Bidding Suit is Dismissed

Complaint reflects a 'fundamental misunderstanding' of how eBay works.

A class action suit that claimed eBay’s automatic bidding system cheats sellers out of potential income was thrown out by a federal court.

The suit, filed in January by eBay seller Marshall Block, claimed eBay “inject[s] itself into the transaction by intercepting the bid amount before it is received by the seller.”

eBay said the suit reflected Block’s “fundamental misunderstanding” of its user agreement and automatic bidding system, according to news reports.

The court agreed, and dismissed Block’s breach of contract claim with prejudice, which means if Block chooses to amend his complaint, he can’t include this particular claim. The court also rejected claims of unfair business practices and unjust enrichment.

About the author

Crista Souza
Crista Souza is founding editor of A journalism graduate of San Jose State University, she spent 13 years as a business and technology reporter in Silicon Valley. Crista has been writing about B2C and C2C ecommerce since 2008. Opinions expressed here may not be shared by The Online Seller and/or its principals.

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