How to Sue eBay in Small Claims Court [Full Guide] (2024)

eBay is one of the largest e-commerce platforms in the world and has attracted nearly 200 million users worldwide. Despite the popularity of this online shopping and selling platform, disputes can often arise, where users may find themselves having to take legal action against eBay. Over the years, eBay has crafted their policies to protect buyers, often leaving sellers with the shorter end of the stick. However, even if a seller believes they have been treated unfairly by eBay, it can be difficult to know what to do next.

This is where DoNotPay can help. If you want to file a claim against eBay for the company’s unfair policies, DoNotPay can help you navigate the legal process and take legal action against the company in Small Claims Court. Through an easy 4-step system, our Robot Lawyer will teach you how you can represent yourself in court against a corporation like eBay, with a high chance for success. But before filing a complaint, it’s important to know when to sue, how to sue, and what to expect from the process.

When Can You Sue eBay?

There are two main cases for which a user would typically sue eBay in small claims court. These are:

  • The unlawful suspension of a user’s account. eBay has listed reasons for which an account can be suspended, including owing eBay fees, having a pending reimbursem*nt to make for a refund, unverified account or outdated payment method. However, some accounts can be suspended without the users ever having violated the existing policy. Because eBay is a significant source of income to some users, this unfair suspension will result in a huge loss of income – like the case of a user who lost over $7,000 in weekly income. This loss of income just cause to sue the company.
  • Being a victim of their unfair ‘buyer always wins’ policy. When it comes to disputes, it is apparent that eBay tends to favor the buyers, even without proper examination. This leaves sellers victim to fraudulent or bad faith claims by buyers. A good example of this is Vishal Vora who sued eBay for siding with a buyer who fraudulently claimed the box of the iPhone he bought from Vora was empty. Although the Post Office confirmed that the phone must have been in the box by the weight, eBay sided with the buyer and took $17 from Vora’s PayPal account to refund the buyer. After having both his PayPal and eBay accounts blocked, Vora decided to sue.

Tips To Follow When Suing eBay

Although the two cases above present solid grounds for suing eBay, the process remains tricky. The following tips can help make it easier.

TipExplanation
Maintain a professional profileMake it clear that you run a legitimate business and that the items are clearly described. Be explicit about pricing, shipping, and return policies. Try to ensure that you have all records and tracking numbers documented.
Respond to buyer inquiries and complaints in a timely fashionNever dismiss buyer concerns, and quickly clarify any policy misunderstanding or questions. This helps defend you from accusations in the event of a dispute or claim.
Keep track of positive reviews and communication lapsesIf the buyer leaves a positive review before making a dispute about the item sold, this review could prove that their dispute is fraudulent. Additionally, if they received the item and only decided to complain about it much later, this can invalidate their claim.
Act in good faithYou should be able to show eBay that the product description, packaging and shipping were all processed according to the standard requirements. Any act of bad faith, including improper packaging could hurt your case.
Defend yourselfWhatever the context, stay calm and logical and clearly state to eBay that the actions taken against you are unfair and you have done nothing wrong to merit them.

The Process of Suing eBay in a Small Claims Court

After having taken the above precautions and noticing that you have been treated unfairly by eBay, you’re well within your rights to sue them in small claims court. These are the steps the process would typically take:

  1. File a dispute with eBay’s customer support. Using their resolution center, the first step is to make eBay aware of your grievance. This will give the company’s customer service a chance to provide a resolution for the problem.
  2. Collect evidence. If you don’t get a response after filing the dispute, you should begin preparing to file your claim by collecting evidence. For instance, if your account is suspended because you are allegedly selling prohibited items, you can prepare a report of all items you sell to counter their claim in court. Also calculate the monetary value of the claim you’re making, ensuring that it’s eligible for the Small Claims Court in your State.
  3. File your claim with the Small Claims Court. After having put together all evidence supporting your case, file your claim with your local Small Claims Court by filling out the required forms and submitting them to the Small Claims Court Clerk.
  4. After filing your claim, procure the demand letter and submit a copy to eBay. This will give them a chance to settle the claim before it goes to trial.
  5. If eBay does not offer to settle, it’s time to file a lawsuit. File your lawsuit and serve eBay.
  6. Prepare for trial and show up to court to defend your claim against the company.

What to Expect if You Win a Case against eBay

Suing eBay in small claims court, though lengthy and complex, offers significant restitution for you, the plaintiff. There are three main ways in which winning a lawsuit against eBay would benefit you:

BenefitDescription
ResolutionThis might be the best chance you have of resolving the issue. For instance, if an account has been suspended and eBay is unwilling to unsuspend the account, an injunction from the judge might be the only way to resolve it.
Reimbursem*ntIf a seller has had money taken out of their PayPal account to refund a fraudulent buyer, a lawsuit gives you a fighting chance to get your money reimbursed.
DamagesLike most unlawful actions, the victim usually suffers damages. In this case, the damages may include emotional distress, loss of income or even a blow to their business’ reputation. A small claim would possibly offer restitution for these damages. For example, two sellers filed a class action lawsuit against eBay for not making it clear that they had recurring fees for certain goods. They ended up with $15,000 awarded to each of them as compensation.

Sue ebay in Small Claims Court with DoNotPay

If you’re looking for an easy way to take legal action against eBay, DoNotPay can help. With DoNotPay, the entire process takes 4 simple steps:

  1. Sign up or login to DoNotPay and choose the Sue Now Product
  2. Enter the dollar amount you are owed
  3. Choose what service you want; a demand form or a court filing form
  4. Describe the reason for the lawsuit and submit any applicable details, including all evidence

And there you have it! DoNotPay generates the demand letter or court filing forms for you. We even simplify the process for you by mailing a copy of the demand letter to eBay.

Other Services DoNotPay can Offer

Apart from helping you sue eBay – and other major companies like Verizon, and Uber – in a Small Claims, court, DoNotPay offers services like:

  • Appealing parking tickets
  • Suing an airline
  • Suing insurance companies
  • Fighting workplace discrimination

Want your issue solved now?

How to Sue eBay in Small Claims Court [Full Guide] (2024)

FAQs

How can a seller win a dispute on eBay? ›

Basically the only way to "Win" is to accept a return and provide a return label. There is NO way to prove the item "is as described", you can only prove you were/are willing to accept a return for a refund. And why they just don't tell us this, I will probably never know.

How do I handle a dispute on eBay? ›

How to challenge the dispute and request a return
  1. Select Respond to case from the dispute notification.
  2. Select Challenge dispute and provide proof and select Continue.
  3. Select Try to get my item returned.
  4. Verify or edit your return address.
  5. Verify or edit the information, or upload new evidence.
  6. Select Submit.

What is the minimum amount you can sue for in small claims court UK? ›

While there is technically no minimum amount for a money claim, the lowest issue fee (the fee you pay to start the process) is £35.00. Therefore if the amount you are looking to recover is very small, you should consider if issuing a claim will be cost effective for you.

Can I take eBay seller to small claims court? ›

Sue the eBay Seller in Small Claims Court

In certain very specific instances, you may be able to sue an eBay seller in small claims court. Many small claims cases can be handled without a lawyer.

How do I file a formal complaint against eBay? ›

How To File eBay Seller Complaints
  1. Customer Support: 1-866-961-9253.
  2. Technical Support: 1-866-961-9253.

Can I sue an eBay seller? ›

Yes, you may be able to sue an online retailer on an eCommerce platform like eBay. A sale between an eBay seller and an eBay buyer is a contract.

Does eBay appeal work? ›

If you don't agree with our decision after we've stepped in to help resolve an issue between you and your buyer, you can appeal by providing new information within 30 days of the case being closed. To improve your help experience, please sign in to your account.

How long does an eBay case take? ›

eBay will review the details and get back to you and the buyer with a resolution within 48 hours: If eBay closes the case in your favor, the case will be closed immediately and you won't need to do anything else.

What happens if you lose at small claims court? ›

Ultimately, if you lose a claim or your defence of a claim, you will be liable for the sum sought originally plus legal costs (see below) plus, potentially, interest accruing on the sums claimed.

Who pays fees in small claims court? ›

Fees are payable at two key stages. The first is the issue fee the court charges to start the claim. The second is the trial fee. If a defendant wishes to pursue a counterclaim, a fee will need to be paid by the defendant.

Can you recover costs in small claims court? ›

Costs are at the discretion of the Judge but the risk of having to pay costs can be a significant one. However, recoverable small claims court costs are usually restricted to court fees paid and expenses.

Is there a class action suit against eBay? ›

eBay Settles Class Action Lawsuit for $1.2 Million

eBay will pay $1.2 million to settle a lawsuit filed in 2012 over practices related to its Buy It Now feature. Luis Rosado sued eBay after becoming fed up with a non-paying bidder for an eBay Motors […]

Can eBay legally hold my money? ›

So now eBay can hold funds hostage as long as it wants, and deduct charges whenever they want from your bank account.

Who is eBay's lawyer? ›

Dan Dougherty, Senior Director and Associate General Counsel of eBay Inc. has been named one of the 25 Most Influential People in IP (Intellectual Property) Law by The American Lawyer magazine. As eBay's top IP attorney, Dougherty oversees the company's legal work related to trademarks.

Who is eBay's biggest competitor? ›

In addition to eBay's biggest direct competitor, Amazon.com Marketplace (which doesn't offer an auction format), a number of alternatives to eBay exist for sellers looking to branch out into other independent online selling platforms. Here are some of the most popular eBay competitors, in alphabetical order.

Is it worth filing a complaint with the BBB? ›

One good option is to file a complaint with the Better Business Bureau (BBB). The BBB helps consumers settle disputes related to sales, contracts, customer service, warranties, billings, and refunds every year. It accepts complaints even if the company that's harmed you doesn't belong to the Better Business Bureau.

Does eBay have a complaint department? ›

If you have a problem with eBay you can contact the corporate office by writing a letter to eBay Headquarters at 2065 Hamilton Avenue, San Jose, California 95125, USA. For complaints, call the customer service phone number at (408) 376-7400.

Can police get involved with eBay? ›

Reports about transactions outside of eBay or PayPal may not be investigated by law enforcement, although your report will help the police to build intelligence and monitor fraud activity. eBay will always assist in a criminal investigation received from Law Enforcement.

How do I contact eBay legal team? ›

Email us at lawenforcement@ebay.com for questions on how to accurately request records. This service is dedicated to law enforcement officers only and inquiries from customers won't be processed. *

Can resellers get sued? ›

Many resellers are unaware that it's illegal to use a company's logo or trademark to market their product. If a reseller does so, they increase their risk of getting sued for trademark infringement, especially if they make a substantial amount of money.

Why would eBay permanently suspended? ›

A full suspension is usually the outcome of a serious violation of eBay's rules and policies. This can also happen if you consistently under-perform. Most often, eBay takes this step after issuing a few warnings. However, sometimes, one case of horrendous customer service is enough to warrant suspension.

Can a seller escalate a case on eBay? ›

Whatever the case may be, if the buyer and seller are unable to resolve the issue, the buyer or seller can escalate the Return request into a Return case. The eBay customer support team will review all INR and Return cases.

How do I get around eBay ban? ›

Step 1: Open your eBay account suspension email. Step 2: Call the support representatives at 1-866-540-3229. Step 3: Discuss the reason why they have suspended your eBay account. Step 4: Request to talk to their supervisor about the issue if the support representatives can't solve it.

How long after an eBay sale can a case be opened? ›

Through eBay - 30 days after the estimated delivery for a not received claim, 30 days after receipt for a return. Buyers can request a return after 30 days, but you can decline. If the buyer paid through paypal, they have 180 days after payment.

How long does eBay keep a case open? ›

Note that all cases close automatically after 21 business days (generally 36 calendar days) of inactivity. If a seller doesn't treat you fairly or doesn't reply in 3 business days, you can report the issue to eBay.

How do you win an item not received case? ›

How to respond and win an Item Not Received PayPal Dispute
  1. Login to the PayPal Resolution Center.
  2. Click “View” under "Action," which is next to your case.
  3. Respond to the buyer by entering all the documents mentioned above (order tracking information, delivery confirmation, etc.) and click Send.
Oct 17, 2020

Can I take legal action against eBay? ›

Yes, you may be able to sue an online retailer on an eCommerce platform like eBay. A sale between an eBay seller and an eBay buyer is a contract.

How do I contact eBay legal team? ›

Email us at lawenforcement@ebay.com for questions on how to accurately request records. This service is dedicated to law enforcement officers only and inquiries from customers won't be processed. *

How long can eBay legally hold your money? ›

According to Ebay policies, 21 day hold is: 21 days after the buyer pays, if you don't provide tracking information, mark the item as shipped, or the estimated delivery date can't be calculated.

Who is eBay's lawyer? ›

Dan Dougherty, Senior Director and Associate General Counsel of eBay Inc. has been named one of the 25 Most Influential People in IP (Intellectual Property) Law by The American Lawyer magazine. As eBay's top IP attorney, Dougherty oversees the company's legal work related to trademarks.

How long does it take eBay to review a case? ›

eBay will review the details and get back to you and the buyer with a resolution within 48 hours: If eBay closes the case in your favor, the case will be closed immediately and you won't need to do anything else.

How long do eBay disputes last? ›

The payment dispute could take up to 90 days or more to be resolved, depending on the payment method or card provider. eBay may hold the funds from payout up to 30 days from when the dispute arises. Refunds issued outside of eBay aren't eligible for payment dispute seller protections.

Can the police get involved with eBay? ›

We are committed to keeping eBay a safe place to shop and will always assist in a criminal investigation and, in accordance with our privacy policies, will appropriately provide evidence to law enforcement and give evidence in court where necessary.

Can I contact eBay by phone? ›

Need to speak to someone? If you can't find the answer in any of our help sections, visit Contact Us and choose a top issue or ask a question. Click 'call' and we'll give you a direct phone number and a PIN number.

Can I email eBay? ›

But if you can't find the help you need, click "Email us." You'll then need to sign in to your eBay account, even if you're already signed in. Finally, you'll be able to write your email in a simple form. Click "Send" when you're done writing the email.

Can eBay keep your money? ›

Additionally, eBay may place a transaction hold on funds depending on your seller status or the category you're selling in: New or infrequent sellers will experience transaction holds while eBay confirms that their items have been successfully delivered.

Can eBay just take money from my bank account? ›

Just because we give them permission to deposit funds from sales in our bank accounts does not give them permission to take funds from them whenever they choose. Don't sweat the petty things and don't pet the sweaty things.

Does eBay always hold funds? ›

To help ensure eBay remains a safe place to buy and sell, and to meet our legal and compliance obligations - opens in new window or tab, we sometimes place a hold on funds, for example, if there's an open case or dispute on a transaction, if your buyer reports a problem with the order, if your account is restricted or ...

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