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eBay sued for online slander
news24 ^ | 1/24/03 | Gina Keating

Posted on 01/25/2003 11:13:30 AM PST by freepatriot32

Los Angeles - A Los Angeles man who says he was libelled in eBay's "feedback" section of its website has sued the online auction house for refusing to remove statements he says damaged his reputation.

Analysts say the case, sparked by an online sale of vintage Hollywood magazines, cuts to the heart of what makes eBay work: the power of buyers and sellers to keep an eye on each other.

Robert Grace, publisher of a Los Angeles legal newspaper, sued eBay and Hollywood memorabilia dealer Tim Neeley this week in a California Superior Court after the website refused to remove negative comments Neeley made after selling Grace six vintage entertainment magazines.

According to the lawsuit, Neeley said Grace "should be banned from eBay", and was "dishonest all the way" for alleging in the online forum that the magazines he bought had arrived late and in a worse condition than advertised.

In his lawsuit, Grace demands $2.5 million in punitive damages from eBay and $100 000 from Neeley.

A spokesperson for eBay said the company would not comment on pending litigation. Neeley said Grace started the battle of words by complaining in eBay's signature feedback section about the condition of the "Radio TV Digest" magazines he bought. The magazines dated from the 1940s and 1950s, he said.

Grace said when he asked Neeley for a retraction, the memorabilia dealer replied: "Get a life, dude."

eBay warns its users they could be held responsible for fallout from libellous comments they make in "feedback", where buyers and sellers can rate each transaction.

"You are responsible for your own words," a warning on the site states, in part. "You should be careful about making comments that could be libellous or slanderous. You will not be able to retract or edit feedback you left."

Suit asks for filters

Grace, an attorney, said he would not have filed suit over the postings "except for the fact that eBay's policy needs to be revised".

"Once they are advised that something isn't true and they just shrug their shoulders, that is arrogant," Grace said. "They can control content and for them to fail to do so is unconscionable."

The suit asks a judge to force the cyber-auctioneer to filter words like "fraud, liar, cheater, scam artist, con man" from the site, or to warn users of the prospect of potentially libellous retaliation if they complain about a seller.

One analyst doubted whether the suit would have much impact on the wide-open cybermarket.

"One of the cleverest things they did was saying, 'We are not responsible, we are only a platform,"' said analyst Safa Rashtchy for US Bancorp Piper Jaffrey. "eBay is like Teflon cookware: nothing sticks to it."

Although eBay has successfully fended off similar suits, an erosion of the feedback system's credibility could be devastating, said Rashtchy.

"If this or other lawsuits over feedback were to succeed ... it would be hugely negative for eBay. eBay's success is largely because of this feedback system," he said.

The lawsuit also demands that buyers and sellers, who use aliases in eBay transactions, register their screen names with the state of California as fictitious business names, and that eBay be forced to collect state sales tax.


TOPICS: Business/Economy; Constitution/Conservatism; Crime/Corruption; Culture/Society; Front Page News; US: California
KEYWORDS: bad; ebay; feedback; forums; online; slander; sued
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1 posted on 01/25/2003 11:13:31 AM PST by freepatriot32
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To: freepatriot32
If it keeps up they are going to regulate and adjudicate commerce out of existence both on the net and walk in.
2 posted on 01/25/2003 11:24:01 AM PST by Arkinsaw
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To: freepatriot32
What a lame-o lawsuit. If a guy receives something of poorer quality than advertised, he has a right to say so on the forum. And, since it is a forum, doesn't the guy have the right to give an online rebuttal. Oops, that would require thought and would not net him a bunch of shakedown money.
3 posted on 01/25/2003 11:26:09 AM PST by Excuse_My_Bellicosity (Europe is full of Marxist weenies.)
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To: freepatriot32
IMO, He's going to fail. At most, ebay may end up with a few more disclaimers on the feedback section. And California fictitious name registration would have to be enforced individually by California, a difficult proposition at best.
4 posted on 01/25/2003 11:31:54 AM PST by templar
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To: freepatriot32
Frivolous. It is a "feedback" system. The guy could have posted a rebuttal and let others judge for themselves who was telling the truth or not.
5 posted on 01/25/2003 11:33:05 AM PST by Burkeman1
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To: templar
Yep, I think you're right.
6 posted on 01/25/2003 11:33:11 AM PST by Excuse_My_Bellicosity (Europe is full of Marxist weenies.)
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Comment #7 Removed by Moderator

To: Excuse_My_Bellicosity
I trust the replies that are submitted by both buyers and sellers on Ebay. When I see too many negatives on a sellers name, I just move on to another auction. This guys seems to have gotten his feelings hurt when he didn't deliver what he promised. Another opportunist.
8 posted on 01/25/2003 11:35:15 AM PST by shadeaud
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To: shadeaud
Yep. It seems to me that if somebody should be sued here, it would be the guy making the supposed vicious comments. But he probably doesn't have the millions of dollars that e-Bay does, so we know why he's going after e-Bay and not the commentor.
9 posted on 01/25/2003 11:50:44 AM PST by Excuse_My_Bellicosity (Europe is full of Marxist weenies.)
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To: Excuse_My_Bellicosity
If you pay by credit card, and don't receive what you bought, you can claim fraud to the credit card company and they will credit your account.

They will then get their mony from the seller.

This works, as I have done it. I shipped the stuff back after I received credit. All I was out is the return shipping.

10 posted on 01/25/2003 12:00:28 PM PST by Dan(9698)
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To: freepatriot32
"Grace, an attorney, said he would not have filed suit over the postings "except for the fact that eBay's policy needs to be revised".

"In his lawsuit, Grace demands $2.5 million in punitive damages from eBay and $100 000 from Neeley."

Lawyer. Frig'n scum.

11 posted on 01/25/2003 12:02:26 PM PST by Leisler ((How come we export all the clusterbombs? Darn. Drat.))
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To: Excuse_My_Bellicosity
Grace demands $2.5 million in punitive damages from eBay and $100 000 from Neeley

What scum. Another good reason to loath lawyers. If lawyer-scum didn't want in on the legal lottery these cases wouldn't be coming up. Also, partially the fault of brain dead juries, of course...

12 posted on 01/25/2003 12:05:52 PM PST by 69ConvertibleFirebird
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To: Leisler
He's here to help us.
13 posted on 01/25/2003 12:06:28 PM PST by Howlin
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To: freepatriot32
The key to leaving negative feedback for someone on ebay, is to avoid calling them names, or making charges. If you stick strictly with the facts and tell what happened to you, you remain on the high ground. Creative wording of the facts can have the highest impact.
14 posted on 01/25/2003 12:26:21 PM PST by babylonian
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To: freepatriot32
I've never watched eBay. My wife won't let me.......oh....yeah...that's Baywatch...

FMCDH

15 posted on 01/25/2003 12:43:48 PM PST by nothingnew
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To: freepatriot32
eBay was once a fine place to buy and sale, however they have gotten so big, they care more about profits than anything else. I moved to Yahoo Auctions as they were much more reasonable (5 cents listing instead of 25 cents plus at eBay) and less restrictive about things. I still use them a little for my none firearm related sales.

Nowadays, I use Auction Arms as they have a 2nd Amendment friendly look at arms and there is not any listing fee at all. Plus their commission for sales are very reasonable.

If you are looking for firearms and/or related products, I highly recommend them. They follow the Law and any firearms must go through a FFL dealer. They have a large listing of FFLs who will handle such transactions.

16 posted on 01/25/2003 1:46:24 PM PST by sonofatpatcher2 (If God Hadn't Wanted Fully Automatic Weapons, He Wouldn't Have Made All Those Armadillos!)
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To: freepatriot32
E-BAY hurts other business and actually winds up costing a buyer more than if he had just simply purchased something at an advertized price.A lot of times a bidder is the buddy of who is selling something and places false bids to drive up the price.NO E-BAY FOR ME!
17 posted on 01/25/2003 2:13:25 PM PST by INSENSITIVE GUY
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To: INSENSITIVE GUY
e-Bay does bring buyer and product in contact. Many eclectic items used to be next-to-impossible for matching buyers to find.

Free Enterprise. It's a good thing.
18 posted on 01/25/2003 2:27:55 PM PST by bannie
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To: babylonian
Feedback is a powerful thing on eBay. There is really no way to leave negative feedback "in a nice way." You could say "This seller is a great eBayer but my stuff arrived late and not in the best condition" and as long as you post it as negative feedback, it's a slap in the face to the receiver.

I once bought something from a guy who sent my item really late and then refused to send my feedback, even though I had sent him payment with PayPal immediately after the auction. When I emailed him, his response was very testy. I could tell that the whole thing could turn into the wrong kind of feedback, so I sent him a somewhat conciliatory message along with some shipping tricks I had picked up in my own business. He eventually sent me positive feedback, although I think he sold my email address, because I started getting tons of spam after that.

Moral: Never use fighting words when communicating with strangers. And never use an email address you want to keep.

19 posted on 01/25/2003 3:40:24 PM PST by giotto
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To: freepatriot32
The lawsuit also demands that buyers and sellers, who use aliases in eBay transactions, register their screen names with the state of California as fictitious business names, and that eBay be forced to collect state sales tax.

On the face of it, this seems like a totally frivolous lawsuit, but who knows what a coked-out, brain-dead California jury will do? And, what on earth does collecting sales tax on eBay transactions have to do with a supposed slander?

Does this ambulance chaser have any kind of ties to Gov. Doofus? Because I really have to wonder if the "slander" isn't a smokescreen, and the REAL issue is to tap yet another source of revenue to feed California's out-of-control government.

20 posted on 01/25/2003 6:10:34 PM PST by CFC__VRWC
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