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New eBay EULA Prohibits Class Action Lawsuits

First time accepted submitter dangthill writes "On August 21, eBay updated its end-user agreement by adding a binding arbritration clause. By accepting the new agreement, users forfeit their right to join class action lawsuits and instead must submit to arbitration. However, users may opt-out by mailing eBay a signed notice. eBay joins Microsoft, Sony, Electronic Arts, Valve and other companies attempting to prevent class actions after the Supreme Court of the United States ruled such tactics valid."

234 comments

  1. Ah, the good old days... by fuzzyfuzzyfungus · · Score: 5, Insightful

    Does anybody else remember when kangaroo courts were something we associated with the commies?

    1. Re:Ah, the good old days... by Impy+the+Impiuos+Imp · · Score: 1, Informative

      1. Congress, and the US, have an interest in not clogging courts. If you have an issue with the law, talk to your Congresscritter.

      2. eBay does something it doesn't have to -- lets you opt out.

      3. It is also a legitimate concern that businesses may create a business model around lots of low-value but improper charges. Even if every one goes against them in arbitration, their business model may account for that in making it worth it. for the remaining masses of uncontested charges. Again, talk to your congresscritter.

      --
      (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
    2. Re:Ah, the good old days... by overmoderated · · Score: 0

      Opt out. Sounds good.

    3. Re:Ah, the good old days... by cpu6502 · · Score: 5, Informative

      That sounds simple enough (opt out) until you realize that Ebay owns Paypal which was prosecuted by the U.S. DOJ for stealing customer funds.

      Under "arbitration" Paypal/ebay had decided that the customers don't deserve to get their money back. Why? Because Paypal was losing money through buyer fraud (credit card chargebacks mostly) and they had a right to take, not just the money lost but ALL the buyers' money, and never return it. They also took money from sellers. (You can read the thousands of stories at paypalsucks.com)

      Under the old rules Paypal/ebay was sued under a class-action lawsuit and forced to refund all the money to their customers. Under the new rules of forced arbitration & no lawsuits..... I guess you're out of luck. Paypal/ebay gets to take your money and keep it.

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    4. Re:Ah, the good old days... by cpu6502 · · Score: 5, Interesting

      >>>forced to refund all the money to their customers.

      P.S. Most people including me sued as "Class 3" and got back $80. Class 2 victims received $500. The smallest was Class 1 which were refunded thousands of dollars (equal to the exact-dollar amount paypal had taken from them, plus their legal fees). I'm sorry you think Paypal/ebay is so fucking wonderful that they never deserve to be sued, but their past history shows otherwise. I fully expect them to go right back to their old ways of "suspending" account and keeping all the buyer's (or seller's) money.

      --
      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
    5. Re:Ah, the good old days... by Hatta · · Score: 5, Insightful

      1. Congress, and the US, have an interest in not clogging courts.

      The whole point of not clogging courts is so that people can have access to them. If you deny them access outright, what's the point of having a court system?

      If you have an issue with the law, talk to your Congresscritter.

      When money speaks louder than words, what good is that going to do? Why would my congressman piss off his numerous corporate donors and represent me instead?

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    6. Re:Ah, the good old days... by timeOday · · Score: 1

      This is useful information. When I sell things I usually leave the money in there since I will eventually spend it down anyways, but perhaps it is better to transfer it out after each sale and not carry a balance.

    7. Re:Ah, the good old days... by MickyTheIdiot · · Score: 1

      I love how we've gotten to the point where the assumption is that doing something "for the good of the business" is always the right thing.

      What is wrong is wrong, whether you're doing it behind the shield of "it's only business!" or not.

    8. Re:Ah, the good old days... by Anonymous Coward · · Score: 0

      No need to opt out, in certain states it's impossible for you to sign away your rights. So look into your current state's laws. In those states even if you sign a EULA that says you won't take any legal action against the corporation, the EULA is void.

    9. Re:Ah, the good old days... by MetalliQaZ · · Score: 4, Informative

      Never leave money in Paypal's hands. Never. They WILL take it eventually. I always use CC transactions for buying and dump out any seller cash immediately.

      --
      "Here Lies Philip J. Fry, named for his uncle, to carry on his spirit"
    10. Re:Ah, the good old days... by cpu6502 · · Score: 3, Insightful

      Absolutely. As a seller you should get your money out of paypal immediately by transferging it to your bank. ALSO when you are a buyer, always use a credit card because sometimes a seller will rip you off, and Paypal gives you a worthless answer like, "We decided to refund your money, but were unable to recover funds." At that point you would normally be screwed, but if you paid with a credit card you can file a chargeback.

      To date I have only lost money once (back in 2001) but now that I use a credit card for everything they protect me from dishonest sellers where Paypal does not. (Unfortunately I've lost hundreds due to dishonest buyers. These scam artists have all kinds of methods to pay.... and then reverse payment, to ripoff ebay sellers. THAT'S why I think buyers deserve negative feedback.)

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      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
    11. Re:Ah, the good old days... by synapse7 · · Score: 1

      If ebay/paypal were to begin stealing money again no contract would validate illegal activity. Does agreeing to a EULA that you will not sue imply ebay/paypal can conduct illegal activities, I'm not a lawyer but I doubt it.

    12. Re:Ah, the good old days... by Anonymous Coward · · Score: 1

      That won't necessarily save you. They can still take money right out of your bank account or right out of your CC because you 'preauthorized' them to do so when you signed up. Barring that, they might just set your Paypal account to the negatives and send you to collections.

    13. Re:Ah, the good old days... by sapgau · · Score: 1

      Either way if contested will not survive in court.
      Contracts are void if found to be illegal.

    14. Re:Ah, the good old days... by sapgau · · Score: 0

      Mod Up
      +1

    15. Re:Ah, the good old days... by Rockoon · · Score: 1

      Define illegal.

      --
      "His name was James Damore."
    16. Re:Ah, the good old days... by number11 · · Score: 1

      If ebay/paypal were to begin stealing money again no contract would validate illegal activity. Does agreeing to a EULA that you will not sue imply ebay/paypal can conduct illegal activities, I'm not a lawyer but I doubt it.

      Nah, but if you can't sue, what could you do about it? Convince your local DA to file criminal charges against eBay? Good luck with that.

    17. Re:Ah, the good old days... by shentino · · Score: 1

      They have an interest in reserving the courts for the benefit of the elite.

      If they really wanted to unclog them, they'd put a stop to bullshit lawsuits in the first place, instead of allowing the playing field to simply tilt in favor of big business.

      And by bullshit lawsuit, I especially include any legal threat backed by nothing more than the plaintiff's superior legal budget. Yes, MAFIAA, that means you. Ditto for patent trolls.

    18. Re:Ah, the good old days... by compro01 · · Score: 1

      in certain states it's impossible for you to sign away your rights. So look into your current state's laws. In those states even if you sign a EULA that says you won't take any legal action against the corporation, the EULA is void.

      Not anymore. The supreme court decision said that the federal law allowing forced arbitration (Federal Arbitration Act of 1925) overrides state laws prohibiting it.

      --
      upon the advice of my lawyer, i have no sig at this time
    19. Re:Ah, the good old days... by QuantumLeaper · · Score: 1

      The last class action suit I was involved in, I got a whole $5 check out of it, I can't even buy a pizza with that amount.

    20. Re:Ah, the good old days... by Anonymous Coward · · Score: 0

      Get a decent cc. I can create account numbers at will, and with a specific limit and expiration. I have one at $50 so they can never take more than that, it will be declined if they try.

    21. Re:Ah, the good old days... by fuzzyfuzzyfungus · · Score: 2

      Word to the wise is never link a bank account to a paypal account. They can attempt a charge against a CC; but you can chargeback and let Visa/Mastercard's coldblooded lawbeasts fight it out with paypal. Bank account? Yoink! It's theirs now, you have the pleasure of fighting to get it back...

    22. Re:Ah, the good old days... by digitalaudiorock · · Score: 1

      Amen to that...and will someone tell me again how these agreements don't violate the 7th Amendment???

    23. Re:Ah, the good old days... by Anonymous Coward · · Score: 0

      Technically, the states have the right to overrule most Federal laws within their borders. That is why you can buy certain guns in Arizona that would normally be illegal at the Federal level. The caveat is that the guns have to be manufactured in Arizona, sold to a Arizona citizen, and never leave Arizona.

    24. Re:Ah, the good old days... by Calydor · · Score: 1

      2. eBay does something it doesn't have to -- lets you opt out.

      Yeah, you just have to go down to the basement, the one where all the lights are out, and fill out a form found in the bottom of a locked filing cabinet stuck in a disused lavatory with a sign on the door saying 'Beware of the Leopard'.

      --
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    25. Re:Ah, the good old days... by timeOday · · Score: 1

      I don't think there's much of a choice. After I reached a lifetime total of $10,000, paypal wouldn't draw from a credit card any more to send payments until I linked to the bank account.

    26. Re:Ah, the good old days... by Nadaka · · Score: 1

      Never link a bank account to paypal, ever. Linking a credit card for payment gives you some small legal recourse in disputing the charges. Your bank is not required to do so. On second thought. Just never use paypal. They are a wretched hive of scum and villainy that blatantly flaunt the law and abuse their customers.

    27. Re:Ah, the good old days... by timeOday · · Score: 1

      This is unfortunate (although my luck has been better, so far). I always figured the substantial fees charged by ebay and paypal were justified mainly by buyer/seller protections.

    28. Re:Ah, the good old days... by fuzzyfuzzyfungus · · Score: 1

      Technically, the states have the right to overrule most Federal laws within their borders. That is why you can buy certain guns in Arizona that would normally be illegal at the Federal level. The caveat is that the guns have to be manufactured in Arizona, sold to a Arizona citizen, and never leave Arizona.

      Thankfully, this no longer applies in order to protect us from the pothead menace...

    29. Re:Ah, the good old days... by fuzzyfuzzyfungus · · Score: 2

      I suspect that your next mandatory binding arbitration session will make that outcome look generous...

    30. Re:Ah, the good old days... by fuzzyfuzzyfungus · · Score: 1

      In theory, I can't imagine how they wouldn't.

      In practice? "While the amount mentioned in the amendment ($20) has not been indexed or adjusted for inflation, Congress has never extended federal diversity jurisdiction to amounts that small, and the amendment is one of the few portions of the Bill of Rights never to have been incorporated by the Supreme Court of the United States. Under the current Federal Rules of Civil Procedure (28 U.S.C. 1332), the amount in dispute in diversity cases must exceed $75,000 USD in order for the case to be heard in federal court."

    31. Re:Ah, the good old days... by scot4875 · · Score: 1

      eBay does something it doesn't have to -- lets you opt out.

      Yeah, so if you do that you can form a class with the other 25 people who opted out. Should be a piece of cake to get a high powered legal team capable of fighting a multi-year battle with eBay's lawyers to take that case.

      --Jeremy

      --
      Jesus was a liberal
    32. Re:Ah, the good old days... by burpnrun · · Score: 1

      The only way to disagree with the arbitration clause is to write and post a letter to E-Bay, thus making it extremely onerous to opt-out. An easier way is to just cancel your account, as I have just done. Maybe if enough folks do this, it will stop these automatic "opt-in" insults and onerous opt-out methods, from being foisted on subscribers to any service on the net. BTW, this E-Bay tactic is illegal in Canada, and would not survive a court challenge.

    33. Re:Ah, the good old days... by Anonymous Coward · · Score: 0

      So true. We the people really need to stand up together and get something done about it. But people just don't care and really just want that UHDTV to watch Jersey Shore. Basically. We the people, are fucked.

    34. Re:Ah, the good old days... by Simply+Curious · · Score: 1

      Except that this clause has already made it to the Supreme Court and has been upheld as valid. http://www.washingtonpost.com/business/supreme-court-backs-binding-arbitration-agreements/2012/01/16/gIQAg4LuGQ_story.html

    35. Re:Ah, the good old days... by Anonymous Coward · · Score: 0

      And I'm sure they have a truckload of lawyers and 6 or 7 digits worth of backing them up that say it IS legal. What have you got on your side of the coin? Being right? That's cute.

    36. Re:Ah, the good old days... by Rob+the+Bold · · Score: 1

      The thing about talking to your Congresscritter is that eBay can also talk to your Congresscritter. And eBay has a lot more money to "talk" with. I've tried the talking thing, and always get a letter back saying "Thanks for your input, but because of American Exceptionalism/National Security/My no tax pledge/the need for balance/whatever I'm not gonna see it your way. Please feel free to contact me again in the future."

      --
      I am not a crackpot.
    37. Re:Ah, the good old days... by iamgnat · · Score: 2

      Either way if contested will not survive in court. Contracts are void if found to be illegal.

      Dude. They even linked to it in the summary. This crap has been upheld by SCOTUS. The argument is over. Even worse than allowing companies to force you into arbitration, they also allow the company to choose the arbiter as well. Under those rulings they can now get away with all kinds of illegal crap so long as they aren't flagrant enough about it to draw the ire of the DoJ or one of the states. Even then, because you can't be part of the complaint (unless you are the "lucky" one that they feel has enough merit for them to win) you will get exactly bupkis of any damages that are awarded.

      Your only hope is that if you have a problem with them that goes to arbitration, the result is in your favor and they ignore that result. Then you *might* be able to sue them, but since they (I haven't read eBay's new EULA, but I know it's true for AT&T) get to pick the arbiter just how likely do you think the result will be in your favor?

    38. Re:Ah, the good old days... by Anonymous Coward · · Score: 0

      Though ultimately, it doesn't mean that another challenge will end the same way - very likely especially with this precedence, but you never know.

    39. Re:Ah, the good old days... by Anonymous Coward · · Score: 0

      I'm sorry you think Paypal/ebay is so fucking wonderful that they never deserve to be sued

      Strawman arguments are lies.

    40. Re:Ah, the good old days... by Anonymous Coward · · Score: 0

      1 - Open checking account
      2 - Link checking account to Paypal
      3 - Let Paypal validate checking account
      4 - Close checking account

    41. Re:Ah, the good old days... by Anonymous Coward · · Score: 0

      Maybe in your country the courts exist to make law, but not in the US. There purpose is to give thumbs up or down to legislation based upon the words in the Constitution and the laws passed by legislatures.

    42. Re:Ah, the good old days... by gstoddart · · Score: 1

      I don't think there's much of a choice. After I reached a lifetime total of $10,000, paypal wouldn't draw from a credit card any more to send payments until I linked to the bank account.

      Oh, there's a choice, but it involves not using PayPal.

      A surprising amount of people have opted for that.

      --
      Lost at C:>. Found at C.
    43. Re:Ah, the good old days... by rk · · Score: 1

      In that era, IIRC, $20 was one ounce of gold. Heck, if they indexed it to the price of an ounce of gold, that would be an improvement from 75k. As I am not a lawyer (merely learned enough law in sheer self-defense), can you explain what "...one of the few portions of the Bill of Rights never to have been incorporated by the Supreme Court..." means? Does it mean that the Supreme Court has never referred to the 7th amendment in any case ever?

    44. Re:Ah, the good old days... by Mister+Whirly · · Score: 1

      Does anybody else remember when kangaroo courts were something we associated with the commies?

      I bet Pussy Riot does.

      --
      "But this one goes to 11!"
    45. Re:Ah, the good old days... by cffrost · · Score: 1

      Never link a bank account to paypal, ever. Linking a credit card for payment gives you some small legal recourse in disputing the charges. Your bank is not required to do so. On second thought. Just never use paypal. They are a wretched hive of scum and villainy that blatantly flaunt the law and abuse their customers.

      Absolutely correct on all counts. I've only used them to make donations to non-profits, until I started hearing horror stories about them cleaning out both entrepreneurs and consumers without so much as a reach-around. Though, I'd be willing to bet that any corporation placed into an equally unique position of power would be just as abusive.

      I just want to add: For additional financial protection and happiness, ditch your bank altogether and switch to a credit union. They're .orgs, not .coms; they don't have a profit motive (i.e., a motive to fuck you out of your money), and if you don't like how things are going, you can vote out the officers in charge when your election ballot comes in the mail.

      --
      Thank you, Edward Snowden.

      "Arguments from authority are worthless." —Carl Sagan
    46. Re:Ah, the good old days... by Anonymous Coward · · Score: 0

      No, the bill of rights does not by default apply to the actions of states, except for those amendments that have been explicit incorporated by the court. That is, it used to be that the restrictions on the federal government from the first amendment (for instance) did not apply to state laws. Only amendments that have been explicitly incorporated apply to state governments. This is the case for almost all of them, but not quite all.

    47. Re:Ah, the good old days... by Nyder · · Score: 1

      That won't necessarily save you. They can still take money right out of your bank account or right out of your CC because you 'preauthorized' them to do so when you signed up. Barring that, they might just set your Paypal account to the negatives and send you to collections.

      Get a 2nt account, make that your paypal account. When any money in put in the paypal account, move it immediately to your main account. They then can lock your account, but if you don't keep money in it, then it's not going to affect you much.

      --
      Be seeing you...
    48. Re:Ah, the good old days... by MetalliQaZ · · Score: 0

      Under what conditions could they make unauthorized charges to your checking account? That seems like serious fraud to me.

      --
      "Here Lies Philip J. Fry, named for his uncle, to carry on his spirit"
    49. Re:Ah, the good old days... by Anonymous Coward · · Score: 0

      Totally agree. If I still used eBay I would stop using it.

    50. Re:Ah, the good old days... by shutdown+-p+now · · Score: 1

      Wasn't there some PayPal rule that, if you apply a chargeback on a credit card when paying through them, instead of going through their own process, they basically kill your account?

    51. Re:Ah, the good old days... by timeOday · · Score: 1

      Is there any good options for receiving payment on ebay other than paypal? (I'm thinking not, since I've used the site enough that I would have noticed.)

    52. Re:Ah, the good old days... by gstoddart · · Score: 1

      I have no idea, to be honest. But I stopped using eBay years ago, and the push towards PayPal was part of it.

      They act like a bank, do bank-like things, but keep saying they're not a bank and therefore not covered by the same laws.

      I'm pretty sure eBay basically said everybody needs to use PayPal (they own it after all) ... but people have been talking about how wretched PayPal is to deal with for better part of a decade now. I have zero trust in them, and I would only use them if they had to draw from a credit card, and if they weren't willing to do that ... well, I'd find another place to deal with.

      I don't ever give anybody direct access to my accounts. I sure as hell wouldn't do it with PayPal. Even the mainstream media has covered this numerous times.

      --
      Lost at C:>. Found at C.
    53. Re:Ah, the good old days... by Archangel+Michael · · Score: 1

      Buyers are protected on Ebay, but Sellers are not. I buy on Ebay, Sell on Craigs list. Life is simple once you realize who is out to screw you.

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    54. Re:Ah, the good old days... by Anonymous Coward · · Score: 0

      Because you vote in the election, not his donors. Do you know why laws like this don't change? It's because the voting populace doesn't care. We can go around blaming money all we want, but an apathetic and willfuly stupid public are the root cause of *every* problem in this country.

    55. Re:Ah, the good old days... by Anonymous Coward · · Score: 0

      It's pretty sad when even sacrificing any sort of windfall for yourself, that you STILL can NOT get any justice in the USA.

    56. Re:Ah, the good old days... by Anonymous Coward · · Score: 0

      Unfortunately I've lost hundreds due to dishonest buyers.

      Karma's a bitch, eh?

    57. Re:Ah, the good old days... by cpu6502 · · Score: 1

      There's a Rumor that paypal will do that, but I've not heard verified stories. Nevertheless it's still better to dispute the damage good in order: (1) Ask seller for refund. (2) Contact paypal if seller refuses. (3) Contact credit card if paypal cannot recover money from seller's empty account.

      --
      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
    58. Re:Ah, the good old days... by hairyfeet · · Score: 1

      The problem is you look at any major class action and the ONLY ones getting shit is the lawyers, the actual victims if they are lucky get a fucking coupon.

      You know what works better for the person that actually got screwed? Small claims court. Most states its between $5k and $10K, costs around $35 to file, don't need a lawyer, and from talking to relatives that have done it the judges there? Don't take any shit from corps. They are also quick to award punitive damages because they figure the corp should have just settled the damned thing instead of wasting the courts time.

      Personally I think that is a HELL of a better deal since the person who actually got screwed gets the money instead of some ambulance chaser. Haven't you noticed how big a business class actions have become? Hell they advertise all day long on TV now, right beside the slip and fall ambulance chasers. If the fact that they are advertising right beside the ambulance chasers doesn't give you a clue the whole thing has become a get rich quick scheme for lawyers I don't know what does, because they sure as hell ain't taking those ads out to help the victims, that's for damned sure.

      --
      ACs don't waste your time replying, your posts are never seen by me.
    59. Re:Ah, the good old days... by Jessified · · Score: 1

      Doesn't apply to most of Canada. Binding arbitration clauses are unenforceable here.

    60. Re:Ah, the good old days... by TheGavster · · Score: 1

      and let Visa/Mastercard's coldblooded lawbeasts fight it out with paypal

      Wait ... two wrongs CAN make a right!

      --
      "Because Science" is one step from "Because old book". Try "Because of my experiment testing my falsifiable assertion".
    61. Re:Ah, the good old days... by hairyfeet · · Score: 1

      Moral of the story....don't use eBay. Lets face it ever since eBay bought PayPal its been scammers heaven, chargebacks and stolen cards and fake sellers and eBay frankly doesn't give a shit as long as they make money in the end, even if they just have to take your bank account to do so.

      I'm sure there are smaller startups out there doing the same thing and if not there is always Craigslist, but if you deal with eBay eventually you WILL get burned. I know enough guys doing the whole eBay thing to know they have to move a serious amount of merch to make up for the fraud and bullshit. So unless you are gonna be moving thousands through the thing I'd say avoid like the clap.

      --
      ACs don't waste your time replying, your posts are never seen by me.
    62. Re:Ah, the good old days... by hairyfeet · · Score: 1

      Ya know as much as I fricking hate AT&T I think they are getting a bum rap on this one, as at least AT&T says you have the choice of arbitration or going to small claims.

      --
      ACs don't waste your time replying, your posts are never seen by me.
    63. Re:Ah, the good old days... by Anonymous Coward · · Score: 0

      Because you can waive the constitutional right to a jury trial if such waiver is knowing and voluntary. While you might quibble over whether an arbitration agreement is "knowing" when contained in a EULA, courts (including SCOTUS) regularly say they are.

    64. Re:Ah, the good old days... by Anonymous Coward · · Score: 0

      I have a an account at a local bank that offers "totally free checking" for paypal and paypal only. My CC that I registered with paypal is a Visa branded check card that is tied directly to that same back account. I get money in and out of that account via the ATM or bank transfers I do online between that account and my main institution. If paypal ever tries to fuck me over, they are not locking or taking much at all. Just as an FYI, I was going to just open a second account at my main bank for palpal but the bank advised that the second account and my main account were still attached and any overages or locks on my second account could be taken from my main account to make up any differences. That's why I went with a totally separate bank for paypal.

    65. Re:Ah, the good old days... by ogdenk · · Score: 1

      I just declined to link my Bank Account and use a prepaid Visa debit card from Walmart. Costs $3 to put money on it but that's better than letting some greed-driven corporation have unfettered access to my livelihood. I typically put just as much as I need for the purchases+shipping on there. I would just not use PayPal but that leaves very few realistic options for person-to-person online payments without making everyone you deal with get a new account somewhere.

    66. Re:Ah, the good old days... by strack · · Score: 1

      the supreme court really screwed up with this one.

    67. Re:Ah, the good old days... by nobaloney · · Score: 1

      Under what conditions could they make unauthorized charges to your checking account? That seems like serious fraud to me.

      Unfortunately, they are authorized. They, and merchant banks, once you give them permission to put money in your account, can also take money out. For me it happened with a merchant bank; put my second business bank account into the red, and took three months for themnn to put the money back in, They never did pay back the service charges they caused when they overdrew my account, and that's when I belatedly found out from my bank that it's what the UCC allows.

    68. Re:Ah, the good old days... by sapgau · · Score: 1

      That's a great link, thanks.

      Clearly it's a hot issue and we should keep putting pressure on changing/updating the law. From the article:

      "A 2007 Public Citizen report claimed that arbitrators working for the National Arbitration Forum, at the time one of the largest U.S. administrators of consumer arbitrations, had ruled against consumers 94 percent of the time."

    69. Re:Ah, the good old days... by sapgau · · Score: 1

      True, the Supreme Court's hands were tied by the law ( Federal Arbitration Act or FAA), so it's a matter of changing it. Although decision was not unanimous.

      The linked decision article also mentions...
      "Future possibility: The Consumer Financial Protection Bureau (CFPB) arguably has the authority to overturn this Supreme Court opinion and adopt a regulation prohibiting mandatory arbitration clauses that prohibit access to class-action arbitration."

  2. U$A legal system... by Anonymous Coward · · Score: 1

    is a freaking fat joke.

    1. Re:U$A legal system... by CanHasDIY · · Score: 3, Insightful

      is a freaking fat joke.

      Not quite - jokes are funny.

      This sort of shit is anything but.

      --
      An enigma, wrapped in a riddle, shrouded in bacon and cheese
  3. so? by firex726 · · Score: 4, Informative

    Doesn't like every other EULA out there do this as well?

    1. Re:so? by mark-t · · Score: 4, Informative

      Possibly.... but depending on your jurisdiction, EULA's don't have any legally binding power anyways (in particular, an EULA cannot take away any of your rights because you have not signed it such that a copy of the contract and your signature could be reviewed by a third party in the event of a dispute).

    2. Re:so? by firex726 · · Score: 1

      Yea, but still not sure how this is news...
      Every other EULA out there, has these same terms.

      It'd be like having service suspended for not paying your bill.

    3. Re:so? by Anonymous Coward · · Score: 0

      Nope. It's quite unusual and controversial, which is why so many up in arms with Valve new EULA as well. You may be thinking of a disclaimer - quite a different animal.

    4. Re:so? by Anonymous Coward · · Score: 0

      You may want to read up on the Federal Arbitration Act in the US and it's clauses which allow for the preempting of state law. It's disturbing to say the least...

    5. Re:so? by waspleg · · Score: 2

      They do now. It's stylish now. Even Valve did this less than a month ago. There is an NPR Diane Rehm show about this topic where one of the legal experts she's interviewing from George Washington University says that 93% of employer/employee contracts now have this in it too with the argument being "if you don't like it don't work there" ...

    6. Re:so? by waspleg · · Score: 5, Interesting

      Oh, and I forgot to mention that Al Franken has been trying to get the Fairness in Arbitration Act enacted by Congress for years now. It was filibustered the last time it went up for vote iirc.

    7. Re:so? by firex726 · · Score: 1

      I think you're missing the point.

      Even if it's unenforceable, eBay is still doing the same thing everyone else is.

    8. Re:so? by firex726 · · Score: 1

      Please RTFA, it specifically notes several other giants who do the same damn thing.

    9. Re:so? by firex726 · · Score: 1

      Did you RTFA, it notes several other giants who do this same thing.

      it's actually pretty common anytime you sign something.
      Go look at the TOS with your bank, loans, electric company.

      If there is a dispute you agree to resolve it with arbitration. Granted it may unenforceable but that does not mean it's news when eBay follows an industry standard.

    10. Re:so? by Anonymous Coward · · Score: 0

      So? The articles present the trend as new, radical and concerning. They also make no mention of "every other EULA out there" forbidding class actions.

    11. Re:so? by iamgnat · · Score: 1

      It'd be like having service suspended for not paying your bill.

      Except with eBay/PayPal, it's more along the lines of having your service suspended and the funds forcibly removed from your bank account (as well as taking anything that was still sitting in your PayPal account) without direct consent all because someone said you were a bad person and they didn't bother to get your side of the story. Sadly that isn't make believe and has actually happened. Many times.

      So it may not be news that a big company does this, but it is news that eBay is paving the way to abuse more of their customers with even less repercussions when they already have a history of doing bad things.

    12. Re:so? by hobarrera · · Score: 1

      No, only a few. And in a great deal of countries, those sort of clauses have no value; the right to a class action suit (or any lawsuit) is something you cannot forfeit, so that clause's existance makes no difference.

    13. Re:so? by houghi · · Score: 1

      Contracts can't also not take away certain rights, even if you signed them.
      e.g. if I would sign a contract that says that my hardware is only supported for one year instead of the legal two (or is it now three) years standard in Europe, I would still be able to require support after 15 months.

      Even if both parties agree on the terms, of a contract, there might be laws that could rule against it. e.g. signing a contract to work for less then minimal wage.

      Sometimes it is unpossible to sign away your rights.

      --
      Don't fight for your country, if your country does not fight for you.
    14. Re:so? by genkernel · · Score: 1

      crap, posting to undo mod.

      --
      Any sufficiently advanced incompetence is indistinguishable from malice.
    15. Re:so? by mark-t · · Score: 1

      How are they alleged to be able to "forcibly remove" funds from a person's bank account, exactly? I presume we're talking about taking funds that they had not received any authorization to take.

    16. Re:so? by iamgnat · · Score: 1

      How are they alleged to be able to "forcibly remove" funds from a person's bank account, exactly? I presume we're talking about taking funds that they had not received any authorization to take.

      I (and I gather you as well) believe that they should require my direct involvement to withdraw funds from my account (e.g. making a purchase, using their transfer services, etc..), but they believe that because you provided them your billing info that they can take the funds whenever they please. For example you sell something to a fraudulent buyer that goes to them and claims that they returned the merchandise but you haven't refunded the money. Then even though this is the first you're hearing about it they suspend your account for investigation, ultimately side with the lying "buyer", and withdraw the funds from your billing account if there aren't enough sitting in your PP account already to cover it.

      I call removing funds from my account without my permission (over at best a "he said she said" argument, at worst outright ignore contrary evidence) with no legal proceeding and little recourse "forcible".

    17. Re:so? by ad0gg · · Score: 1

      I wonder if you wrote a browser extension that redlined the whole EULA, took a screen shot when you clicked agree, if that would hold up in court. It works for regular contracts.

      --

      Have you ever been to a turkish prison?

    18. Re:so? by mark-t · · Score: 1

      ... but they believe that because you provided them your billing info that they can take the funds whenever they please.

      They are mistaken in that belief, and I am nothing less than incredulous that an organization that works with electronic payments would not realize this. My bank account is linked to my Paypal account as well, but I know that they cannot withdraw any funds that are not a attributable either to a purchase or else a service charge that is attached to a purchase. Even on the off chance that they were able to accomplish it, I might lose my Paypal account, but I know for certain (or rather, at least as certain as anyone can know that money in any bank is secure, which it generally is, barring a national economic catastrophe that might possibly affect such things) that I'd get all of my money back... probably within hours, if not minutes of my notifying the bank that money has disappeared from my account

    19. Re:so? by Anonymous Coward · · Score: 0

      Couldn't a seller require that any returns for exchange or refund, if any are even being offered, be accompanied by a tracking number as prerequisite for the exchange/refund?

      Also, in many jurisdictions, refunds or returns are strictly at the discretion of the seller, and any such policy must be stated, explicitly. In such a jurisdiction, and if no such policy was present, then a buyer would have no legitimate reason to expect a refund simply because he returned the item any more than if he simply decided he did not want it and threw it in the trash.

    20. Re:so? by Anonymous Coward · · Score: 0

      Wow, 5 informative, and totally false. EULAs have been found to be enforceable in many jurisdictions and the modern trend is to enforce them. However, certain provisions are considered "unconscionable" and will not be enforced. It varies by jurisdiction.

      EFF has a detailed rundown.

  4. Real question is will they drop you? by gurps_npc · · Score: 1
    That is, if you 'agree', then send a signed notice, will they drop you?

    More importantly, can you 'agree', participate in an auction, then drop out and then join a class action suit for the one auction you participated in before you dropped out?

    --
    excitingthingstodo.blogspot.com
    1. Re:Real question is will they drop you? by Mashiki · · Score: 1

      Meh I live in Canada, no notice required. It's simply not binding, not binding in the EU either. We just go on our way over this stupid nonsense.

      --
      Om, nomnomnom...
  5. New law by Anonymous Coward · · Score: 0

    All you need is a new law where such agreements are declared null and void and that the right to sue, including class action, can never be waived and/or otherwise infringed upon. Good thing there's an election coming up, let's ask them!

    1. Re:New law by v1 · · Score: 2

      that would certainly be nice. The rights granted by any "consumer protection laws" in general should not be waivable. Not just class action suit. Because companies are known to be coercive about trying to force their customers to waive those rights.

      --
      I work for the Department of Redundancy Department.
    2. Re:New law by MickyTheIdiot · · Score: 1

      Sure. Do you want to pay the $50 mil to the congresscritter or shall I?

    3. Re:New law by CanHasDIY · · Score: 1

      I'd happily chip in on that one.

      --
      An enigma, wrapped in a riddle, shrouded in bacon and cheese
    4. Re:New law by Anonymous Coward · · Score: 0

      Actually while lobbiest earn a ton of money, the bribery numbers are rather small. If you can earn $1 million to fund a museum on kickstarter, a nationally funded consumer rights group akin to the NRA is not inconcievable, but really most that exist seem rather...tame....? Nice?

      Honestly I am forced to wonder if they are really just shills and/or fronts for corporations..at least the ones of any size. Maybe they only have non visionary or incompotent leadership?

      Why has no one of national prominence tried to organize a bribery group at the grass roots level? Indeed, even the EFF which does amazing work, relies on the courts and not bribery.

    5. Re:New law by cffrost · · Score: 1

      Sure. Do you want to pay the $50 mil to the congresscritter or shall I?

      Maybe we should have a non-profit consumer protection lobby that accepts charitable donations with which to bribe- I mean, "lobby" to protect us from bloodsucking corporations?

      --
      Thank you, Edward Snowden.

      "Arguments from authority are worthless." —Carl Sagan
  6. Is ebay only going to work in the USA now? by mark-t · · Score: 0

    Because last time I checked, SCOTUS doesn't have jurisdiction elsewhere.

    1. Re:Is ebay only going to work in the USA now? by Anonymous Coward · · Score: 2, Insightful

      No, but they risk nothing adding it everywhere. At best its an effective protection for company, at worst its just unenforceable and ignored. Only negative aspect is bad press in the internet, but since many other major players already did it, it will be pretty minor (and quickly forgotten).

    2. Re:Is ebay only going to work in the USA now? by overmoderated · · Score: 0

      It's SCROTUS really.

    3. Re:Is ebay only going to work in the USA now? by cpu6502 · · Score: 1

      Technically the SCOTUS doesn't have jurisdiction in the U.S. either. They rule on *individual* cases not all cases in perpetuity. Just because they made a ruling that "user contracts can block class-action suits" does not mean any of the lower-level judges have to abide by it.

      For example I might sue Ebay in the state of Maryland, win a class-wide lawsuit for all state residents, and on appeal by Ebay the Supreme Court of Maryland upholds the lower court's decision..... in direct opposition to the U.S. Supreme Court prior ruling.

      --
      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
    4. Re:Is ebay only going to work in the USA now? by Endovior · · Score: 1

      Do note that this ruling only applies to the law as it stands. Do note that the CPFB has the authority to overturn this ruling (according to the article, at least), and this practice, by adopting a regulation prohibiting mandatory arbitration clauses. In other words, if you are an American, and concerned about this practice, go to consumerfinance.gov and send them your concerns.

    5. Re:Is ebay only going to work in the USA now? by X0563511 · · Score: 1

      Can folks from other countries join in a US class action? If not, the point is moot.

      --
      For large sets, this will be our guide even unto death, for the LORD will work for each type of data it is applied to...
    6. Re:Is ebay only going to work in the USA now? by Anonymous Coward · · Score: 0

      Just because they made a ruling that "user contracts can block class-action suits" does not mean any of the lower-level judges have to abide by it.

      Correct, they do not have to. But here in the real world, it would be in your best interests to assume that they will, so that you can mount an appropriate defense, instead of relying on just the single defense that has already been shot down by SCOTUS.

      It's good to see that you admit that, despite what the rule of law says, government officials will just do whatever. So why do you still cling to the idea that because a lower court does not have to follow a SCOTUS ruling, it won't?

  7. Plague by Microlith · · Score: 4, Insightful

    I imagine it's already appearing on many more transitory agreements. Corporations now have an out, thanks to Scalia and his buddies, that protects them from the possibility that they'll ever get hit with a lawsuit big enough to actually threaten them. It puts each and every person that they fuck over out on their own and arbitration biases everything in their favor.

    I await the inclusion of anti-class action language in virtually all individual-facing contracts. It's virtually guaranteed to happen as there's no downside whatsoever for the corporations.

    1. Re:Plague by The+Moof · · Score: 4, Interesting

      I await the inclusion of anti-class action language in virtually all individual-facing contracts. It's virtually guaranteed to happen as there's no downside whatsoever for the corporations.

      The last time I checked, just about every contract or agreement I enter into has this clause already. This includes companies where I have no alternative due to a government-granted monopoly (my gas company and my electric company have both done this). So much for saying "no thanks" and finding an alternative...

      The really sad part is since corporations got away with this, I've actually started seeing companies slipping in waiving your right to any legal action, class action or individual lawsuit. I would say I'm waiting for the day that gets struck down in court, but knowing the current state of things, I'm not optimistic about it going our way (by 'our,' I mean us consumers and citizens).

    2. Re:Plague by Baloroth · · Score: 3, Insightful

      Do you have any evidence that arbitration actually biases it in their favor? The Federal Arbitration Act specifically states that for the arbitration to prevent entering court, it must be fair: at least as fair as going to court would be. In other words, if it actually is biased for the companies, they could be sued over that for violating the law. In other words, you can only have an arbitration clause in the first place if it is actually fair (IANAL, of course).

      --
      "None can love freedom heartily, but good men; the rest love not freedom, but license." --John Milton
    3. Re:Plague by Microlith · · Score: 1

      The last time I checked, just about every contract or agreement I enter into has this clause already.

      And thanks to the Supreme Court, it actually has teeth. That's why every company out there is adding it to their consumer-facing agreements.

    4. Re:Plague by Anonymous Coward · · Score: 2, Interesting

      The point made was: They get to pick the arbiter, and said arbiters prefer to rule in favor of those who will lead to continued work (ie the company being arbitrated against.)

      Hence it's basically the equivalent of a judge on the payroll. Sure they MIGHT rule against the big guy, but if so the damages will be so small that it's considered worthwhile in the company's case to provide proof that they're not being biased against the little guy (when it's obvious they are.)

    5. Re:Plague by Microlith · · Score: 3, Informative

      Do you have any evidence that arbitration actually biases it in their favor?

      Virtually all of these agreements explicitly specify the company that will handle the arbitration and from the ones that I've seen have the company being challenged paying for it. Thus, it's in the arbitrator's interests to find for the defendant so that they keep coming back. They'll be dropped in a heartbeat if they find for the plaintiff.

      if it actually is biased for the companies, they could be sued over that for violating the law.

      And you'd have to prove that well enough to get the Federal Government to pursue the case.

    6. Re:Plague by Desler · · Score: 1

      Sure. I look forward to your telling me how this is invalid evidence, though.

    7. Re:Plague by Anonymous Coward · · Score: 1

      I await the inclusion of anti-class action language in virtually all individual-facing contracts. It's virtually guaranteed to happen as there's no downside whatsoever for the corporations.

      The last time I checked, just about every contract or agreement I enter into has this clause already. This includes companies where I have no alternative due to a government-granted monopoly (my gas company and my electric company have both done this). So much for saying "no thanks" and finding an alternative...

      The really sad part is since corporations got away with this, I've actually started seeing companies slipping in waiving your right to any legal action, class action or individual lawsuit. I would say I'm waiting for the day that gets struck down in court, but knowing the current state of things, I'm not optimistic about it going our way (by 'our,' I mean us consumers and citizens).

      So the only gas company you can deal with has a contract that states some thing like "...furthermore the undersigned agrees not to sue Acme Gas in the event Acme equipment malfunctions and blows up the undersigned's house or damages his property in any other way..." Man... if that is true the USA is really screwed up.

    8. Re:Plague by fuzzyfuzzyfungus · · Score: 3, Informative

      This look at credit-card related MBA doesn't look good. It also isn't a good sign that even the Wall Street Journal, not exactly known for its The Daily Worker editorial slant, has observed the problem.

      So, yeah, the available statistics don't look good, and the structure under which company/consumer arbitration is operated(Company requires many arbitrations/year, gets to select arbiters, results of past arbitrations are obviously available to the company; but typically not available to the consumer, arbiters know that future business can depend on past 'results') it'd be a fucking miracle if any impartiality existed...

    9. Re:Plague by NeutronCowboy · · Score: 1

      It is biased towards the corporation by definition. Number 1, the corporation has people on payroll who handle lawsuits and arbitration requests. As a result, an arbitration request is a wash for the corporation, but it still is a huge inconvenience for the individual. Number 2, arbitration is on average much, much cheaper for a corporation than a lawsuit. So cheap that it amounts to change found in the couch. However, arbitration is still a significant cost for all but the top 20% of the population.

      So who will take advantage of arbitration? Almost nobody. And the corporation can be safe in its knowledge that it can fuck its customers over $100 at a time, and it will barely cost it a dime.

      --
      Those who can, do. Those who can't, sue.
    10. Re:Plague by Anonymous Coward · · Score: 0

      Do you have any evidence that arbitration actually biases it in their favor? The Federal Arbitration Act specifically states that for the arbitration to prevent entering court, it must be fair: at least as fair as going to court would be. In other words, if it actually is biased for the companies, they could be sued over that for violating the law. In other words, you can only have an arbitration clause in the first place if it is actually fair (IANAL, of course).

      I am not a lawyer either but according to a documentary I watched recently that took a close look at mandatory arbitration, US corporations have started inserting these arbitration clauses into their employment contracts. The arbitrator is chosen by the corporation, and by signing the contract the employee waives all right to sue the corporation over accidents, corporate malpractice, negligence or incompetence of any kind and even things like rape and other forms of physical violence and criminal activity. It is absolutely incredible that until recently women could be raped on corporate premises and the whole matter would be handled by corporate security, the victim was not entitled to a trial, only mandatory arbitration by a corporate appointed third party. These corporate appointed arbitrators are heavily motivated to favour the corporation because it is the corporation that chooses the arbitrator, it is the corporation that pays them and the corporation is not no going to keep choosing an arbitrator that finds in favour of employees and awarding them damages and lowering corporate profit margins now is it? Given the choice I'd rather take my chances with the court system, however rotten and flawed it may be. In the courts at least I would stand some chance of getting a semblance of justice.

    11. Re:Plague by Baloroth · · Score: 1

      The terms specify that eBay will pay the costs of the arbitration (so long as the judgment is under $10,000 dollars) unless it is deemed as frivolous by the arbitrator, so it won't cost the individual a dime in legitimate cases. Also they allow arbitration by telephone for under a certain amount (don't recall the exact figure), so it isn't even a terrible inconvenience.

      There is also the fact that if eBay really does start fucking over customers (more than they do already), people will find out and stop using eBay. The Internet is quite good at that.

      --
      "None can love freedom heartily, but good men; the rest love not freedom, but license." --John Milton
    12. Re:Plague by mark-t · · Score: 1

      I'n pretty sure that if the issue at hand for a possible lawsuit is on account of a threat to public health or safety, then any anti class action lawsuits clauses are not applicable.

    13. Re:Plague by Baloroth · · Score: 1

      I look forward to your telling me how this is invalid evidence, though.

      Well first of all, the site proudly proclaims it is run by lawyers. As others have noted, lawyers make millions of dollars off of class action lawsuits while the injured parties are lucky to make a few dollars, which makes me inclined to be highly suspicious of anything they claim right off the bat (I'm actually suspicious of anything lawyers claim period: many of them make a living by saying things that are not technically false, but which any reasonable person would call a lie). Oh and

      Americans overwhelmingly disapprove of froced arbitration (81 percent) when presented with all the facts.

      (emphasis mine, but otherwise sic.) so, you just might want to find a better source. Because honestly, if they can't be bothered to notice such an obvious typo, I'm simply not going to believe them. And language like "all of the facts" is usually code for "the facts as we present them and what we care to present", which is of course usually neither very factual nor very "all".

      --
      "None can love freedom heartily, but good men; the rest love not freedom, but license." --John Milton
    14. Re:Plague by cpu6502 · · Score: 1

      >>>government-granted monopoly (my gas company and my electric company have both done this). So much for saying "no thanks" and finding an alternative...

      (1) Tear down your house and build a PassivHaus. It requires no heating and only moderate A/C so you can screw the gas/electric company of thousands of dollars each year. (2) Move to a state that has gas/electric choice. You can switch to a company that doesn't block lawsuits.

      --
      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
    15. Re:Plague by gatfirls · · Score: 1

      You're wrong. They will usually "find for the plaintiff" to one degree or another. The purpose of arbitration is to avoid punitive(etc) damages in court and to deal with broad abuse on a case by case basis as a kind of firewall against a broad "assault" against widespread abuse. Arbitrators are good for businesses to deal with each other because they generally are "fair" to all parties involved, it's not good for business to consumer because what's "fair" is for you to get your money back and the business to continue fucking people over.

    16. Re:Plague by scot4875 · · Score: 1

      There is also the fact that if eBay really does start fucking over customers (more than they do already), people will find out and stop using eBay. The Internet is quite good at that.

      Heh, your idealism and belief in the ability of your fellow man to keep informed of things like this is cute.

      --Jeremy

      --
      Jesus was a liberal
    17. Re:Plague by NeutronCowboy · · Score: 1

      By cost, I meant that people going into arbitration have to take PTO, they have to travel to the place of arbitration and actually study up on what is going on. And arbitration by telephone? That works only if it is something braindead that doesn't require any discussion of evidence. And it's funny that the arbitration costs only come into play for very small sums, which would indicate that the arbitration will be short and sweet. For anything more significant, you're on the hook for everything yourself.

      There is also the fact that if eBay really does start fucking over customers (more than they do already), people will find out and stop using eBay. The Internet is quite good at that.

      Ah, the free market magic at work. What alternative would they use? What other online auction site has the same network effect? Yeah, that's what I thought. Not to mention that arbitration specifically targets small issues spread over a lot users - just enough to not piss off people enough to leave, but just enough to add comfortably to the bottom line. Looks like you're actually aware that that's already happening. Why bother with this line of argument if you already know it's wrong?

      --
      Those who can, do. Those who can't, sue.
    18. Re:Plague by Anonymous Coward · · Score: 0

      Move to a state that has gas/electric choice. You can switch to a company that doesn't block lawsuits.

      Even in such states, you will find that the set of companies is finite, and all of them will have this clause in their "contracts". What then?

    19. Re:Plague by raydobbs · · Score: 1

      Nice...but no. You can't be forced to arbitrate in cases of criminal complaints - although you file the complaint, you are not the plaintiff in such cases. The government with its resources are - as they will NOT waive jurisprudence for arbitration when criminal law has been broken; it would be a case for instant appeal if they even tried it. It's the reason it's always the State of vs. Mr or Mrs Scumbag - and not Joe Blow vs. Mr or Mrs Scumbag. Companies can make you sign it - but the police aren't going to flinch if you immediately take your complaint from corporate security to them - they will still investigate and prosecute as the law dictates.

    20. Re:Plague by shutdown+-p+now · · Score: 1

      If it's just as fair as the court, then why wouldn't they be content with the court in the first place?

    21. Re:Plague by makomk · · Score: 1

      Doesn't look good is a understatement. The WSJ actually found a deposition by an actual arbitrator for the NAF claiming that credit card companies refused to let her serve as arbitrator for any of the cases brought against them by consumers after she ruled in favour of the consumer in one of them. That's pretty damn convincing evidence that binding arbitration is biased against the consumer.

    22. Re:Plague by vux984 · · Score: 1

      The purpose of arbitration is to avoid punitive(etc) damages in court

      That presupposes going to court is even an option, which it is when normal arbitration fails. We can all agree that arbitration tends to be a reasonable step to try and settle before going to court.

      "Binding Arbitration" is a whole other animal. There is no risk of the company being taken to court, because the aribtration is BINDING. That is the entire problem here. You can't take the case to court if binding arbitration is unsatisfactory.

    23. Re:Plague by Darinbob · · Score: 1

      The problem is that we have so many idiots, even professional lawyers, who believe that arbitration is fair and unbiased. Combine that with the commonly held perception that the legal system is unfair, and these abitration clauses pass through with minimal objection. They don't realize that they're trading one partially broken legal system for a different legal system that is absolutely broken.

    24. Re:Plague by Darinbob · · Score: 1

      Most contracts allow the corporation to pick the arbitor. Many contracts will allow for redoing the arbitration if either party dislikes the outcome, with the price paid equally between the two parties. Sounds fair if this were between two companies with deep pockets, but it's unfair between a rich company and a poor customer or employee.

    25. Re:Plague by Anonymous Coward · · Score: 0

      More to the point, even if arbitration is biased in favor of the plantiff, it still only deals with one particular case while allowing the corporation to continue their wrong-doing against all their other clients. A class-action is a judgement and penalty against the company for their activities in toto. Arbitration is a cost of doing business; a class-action lawsuit is the government telling them they need to change the way they do that business.

      So while ebay might pay out some money to customers who go to the bother of arbitration, they can still continue to fleece the thousands of other customers without issue.

    26. Re:Plague by Anonymous Coward · · Score: 0

      You are missing the point.

      Since the company picks the arbitration company, if the arbiter doesn't find in favor of the company the majority of the time, said company finds another arbitration company.

      It's pretty basic it's called "conflict of interest" and ethical judges dismiss themselves over it.

    27. Re:Plague by xycadium · · Score: 1

      The last time I checked, just about every contract or agreement I enter into has this clause already.

      This even included my rental agreement with the apartments I recently moved into!!

  8. What did you expect in the us of a ? by Anonymous Coward · · Score: 0

    You can't pull this stunt in Europe.
    Oh my, how the mighty have fallen. What a joke living in a consumer society that offers no consumer protection.
    Go team usa, go go go!

    1. Re:What did you expect in the us of a ? by Anonymous Coward · · Score: 0

      You can't pull this stunt in Europe.
      Oh my, how the mighty have fallen. What a joke living in a consumer society that offers no consumer protection.
      Go team usa, go go go!

      I agree, private arbitration where the corp. you are dealing with gets to pick the arbitrator is a steaming pile of bull***t. However, it seems all is not lost, if you read the judgement analysis linked to in the summary it says:

      Future possibility: The Consumer Financial Protection Bureau (CFPB) arguably has the authority to overturn this Supreme Court opinion and adopt a regulation prohibiting mandatory arbitration clauses that prohibit access to class-action arbitration.

      Seems to me it is time for Americans to start inundating (their respective congressmen?) and the Consumer Financial Protection Bureau with angry emails.

    2. Re:What did you expect in the us of a ? by Anonymous Coward · · Score: 0

      Nor in Ontario.

    3. Re:What did you expect in the us of a ? by ElitistWhiner · · Score: 1

      What little is left of American mythology is reflected in the good intentions of those who participate but do not have the same agency, full force of legal standing nor full constitutional rights on the field of play. Arbitration is the legal free-waiving of your constitutional rights granted all American citizens to enter into another domain of statutory law in exchange for the privilege of performing a transaction in a business domain with agreed-in-advance inconsequential outcomes.

      The one arbitration I've successfully participated until conclusion was fraught with series of cascading hoops through which evidence had to be gathered, lifted and passed through to make it into the final judgement and subsequent award. Evidence was treated as property regardless of condition and sought only to separate vested ownership interest. Award of compensation, renumeration and damages followed the property and there did not exist any claim to ' make the parties whole' or ' judge wrongdoing' in a penalty phase. The lasting experience was an arbitration which simply unwound transactions on a case by case basis with monies in dispute limited to transaction values and penalties for behaviors which in a US court might rise to civil or criminal were simply beyond the jurisprudence of the process.

  9. Class Action Everyone looses except for the lawyer by jellomizer · · Score: 2, Informative

    Class actions are less about justice but revenge.
    If you win a big case you usually get like 100 bucks out of the deal (A lunch for two at a 2 star restaurant). The company need to pay the $100 * 1,000,000 plus legal fee. So they loose a lot of money, the victims let little if any (because they will appeal it over and over or just refuse to pay).
    You you loose, the company looses. The only one getting big money are the lawyers, unless you happen to get a movie deal out of it.

    --
    If something is so important that you feel the need to post it on the internet... It probably isn't that important.
  10. Great. by Anonymous Coward · · Score: 0

    The arbitrator will decide the substance of all claims in accordance with the laws of the State of Utah, including recognized principles of equity, and will honor all claims of privilege recognized by law. The arbitrator shall not be bound by rulings in prior arbitrations involving different eBay users, but is bound by rulings in prior arbitrations involving the same eBay user to the extent required by applicable law. The arbitrator's award shall be final and binding and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.

    For one, isn't it interesting that the applicable laws are from Utah and not form California where eBay is based?

    Also, don't you hate it that these companies can just put up some web page with their terms and conditions but if you want out, you are the one that has to mail a letter?

    As far as I'm concerned, I don't see how an eBay user can get a fair shake out of this. All that shit about

    Arbitration uses a neutral arbitrator instead of a judge or jury, and court review of an arbitration award is very limited.

    just means that eBay will come out ahead no matter what.

    Why don't we just cut to the chase and rename the US of A to US of CA - United States of Corporate American.

    Yeah, yeah, yeah, for every ridiculous lawsuit against some poor poor mega corporation where they have to pay millions for some bullshit, they're raking in billions fucking over everyone else.

  11. Re:Class Action Everyone looses except for the law by AF_Cheddar_Head · · Score: 5, Insightful

    You might be right about only the lawyers winning but the consumer has already lost if it gets to class action. In a system with forced arbitration the Corporation never loses and never has an incentive to fix a problem, at least with a class-action suit the corporation stands some small chance of losing and may attempt to fix the problem.

  12. As it should be by poet · · Score: 1

    People complain about this all the time.

    Just don't use the site.

    --
    Get your PostgreSQL here: http://www.commandprompt.com/
  13. Ok, so don't use them by Anonymous Coward · · Score: 0

    It's the only answer guys. Also, if you truly contemplate this idea, you'll better understand the real problem. The real problem is that Americans are not capable of giving up their luxuries, otherwise they'll figure out that it's all they have. America fell asleep in the bath and are now so shriveled up, that to get out of the water hurts. Now they can't sue the waterworks people for their fuck-ups?

    On the other hand, their judicial system is so corrupt that to even attempt to explain the horrors that are allowed to go on makes one sound like a paranoid jerk.

  14. Re:Class Action Everyone looses except for the law by Antipater · · Score: 3, Insightful

    Yes, because punishing a company for business practices that provoked 1,000,000 people to require legal recourse is something we never want to do. Also, I don't know which is worse, your spelling or the fact that you pay $50/person for lunch.

    --
    Everything is better with chainsaws.
  15. Re:Class Action Everyone looses except for the law by Anonymous Coward · · Score: 0

    The point is the company shouldn't have so many pissed off customers. A class action levels the playing field, because the govts already rate an anonymous corporation well above living people.

  16. Re:Class Action Everyone looses except for the law by fuzzyfuzzyfungus · · Score: 2

    Class actions are less about justice but revenge.

    I would agree that legal fees, as a percentage of settlement, do tend to be excessively high in class action cases; but some perspective is in order:

    Because, as you note, the payoff for individual class members is fairly poor, consider why the class would participate: Because the alternative is nothing.

    If all litigation is on an individual basis, simply ensuring that you commit only malfeasance too petty to be worth court costs is de-facto legal; because who would go after you?

    Should a greater cut of the class action go to the class members? Sure. Is 'revenge' against malefactors a bad thing? Hell no. We usually call it 'punishment'. That's part of the point. Even if the wronged party gets nothing, raising the expected costs of committing a wrong reduces the odds that a value-rational company will try to pull one. This isn't a difficult concept.

  17. Re:Class Action Everyone looses except for the law by Eldragon · · Score: 1

    "Class actions are less about justice but revenge."

    Justice, punishment and revenge are nearly impossible to tell apart.. especially in the US judicial system.

  18. Re:Class Action Everyone looses except for the law by Anonymous Coward · · Score: 0

    I guess I shouldn't be surprised that someone who posts "You you loose, the company looses" doesn't understand the point of class actions

    Appropriate captcha: ignorant

  19. Cut to the chase by Anonymous Coward · · Score: 0

    SCOTUS should have just ruled class actions invalid and saved everyone the trouble. If you're going do the bidding of your corporate masters, just do it and get it over with -- like ripping off a band-aid, do it quickly and all at once. Corporations are people, money decides elections, peasants have no legal recourse, etc... Just say it; quit dancing around the fact that this country was bought and paid for years ago.

  20. Re:Class Action Everyone looses except for the law by i+kan+reed · · Score: 4, Insightful

    Yes, but part of the point is the scummy company loses. Sometimes tort law isn't about recouping losses, but preventing unethical behavior in the first place. Frequently the classes of wronged people don't suffer much, but LOTS of people suffer. To me, it seems like a valid course for redress of grievances, and you shouldn't be legally allowed to sign away your rights.

  21. Inalienable Rights? by beaverdownunder · · Score: 1

    What ever happened to those? Or were they traded away at some point?

    Companies can put whatever they like in a EULA. Whether it will actually stand up to scrutiny is another matter.

    There's a reason why eBay is allowing people to 'opt-out' -- TBH, if there _was_ a problem, and you sent them a letter threatening to attempt a class-action anyway (and could prove the means to fight it), you'd probably get a personal settlement offer straight away. Nobody's going to want to risk an adverse ruling on a challenge, since it well 'discourages' anyone from 'wasting' money launching a class-action and thus does it's job...

    1. Re:Inalienable Rights? by Desler · · Score: 2

      Class action lawsuits are not an inalienable right. They exist due to rules created by the states and the Federal government.

    2. Re:Inalienable Rights? by godrik · · Score: 1

      There was a good deal on wall street, so we had sold it. Strangely, we can not buy it anymore. Where is the factory that produce those?

    3. Re:Inalienable Rights? by Anonymous Coward · · Score: 0

      The EULA is a contract. You can accept it and do business with them or not, your choice. There are two parties in the contract and neither side can dictate the terms to the other.

    4. Re:Inalienable Rights? by MickyTheIdiot · · Score: 1

      What world are you living in? Seriously. Corporations have much more power than the individual and they dictate terms all the time, especially in granted monopolies and in natural monopolies like ebay. And, yes, ebay is a natural monopoly to the extent that it wouldn't even occur to many non-geeks that they have competition.

    5. Re:Inalienable Rights? by Anonymous Coward · · Score: 0

      Class action lawsuits are not an inalienable right. They exist due to rules created by the states and the Federal government.

      So is Copyright and many other rights. So your point is what exactly ?
      That society works only using inalienable rights ?

  22. Commies??? by Anonymous Coward · · Score: 1

    Does anybody else remember when kangaroo courts were something we associated with the commies?

    You are a white American aren't you? Talk to a Black, Hispanic, Asian, or Native American, or a Jew, they can tell you loads of stories about how non whites and non Christians have gotten shafted in the US in kangaroo trials since before the Revolutionary War. Hell, even catholic whites used to be treated like a lower form of life.

    1. Re:Commies??? by fuzzyfuzzyfungus · · Score: 2

      Oh, the US has always operated a multi-tier justice system; but we've typically also operated substantial self-congratulatory hypocrisy about it. My intended point is that we seem to be getting to the point where we can't even be bothered to pretend to hold the moral high ground...

    2. Re:Commies??? by qbast · · Score: 1

      This point was passed when they created "military commissions".

    3. Re:Commies??? by QQBoss · · Score: 1

      Soooooooo, 1847 (Mexican-American War)? Or would you include the Board of Inquiry that G. Washington initiated in 1790 to deal with a British major who was believed to have conspired with Benedict Arnold (he was convicted and hanged). Military commissions go back way before the Romans.

  23. Re:Class Action Everyone looses except for the law by Anonymous Coward · · Score: 0

    Class actions are less about justice but revenge.
    If you win a big case you usually get like 100 bucks out of the deal (A lunch for two at a 2 star restaurant). The company need to pay the $100 * 1,000,000 plus legal fee. So they loose a lot of money, the victims let little if any (because they will appeal it over and over or just refuse to pay).
    You you loose, the company looses. The only one getting big money are the lawyers, unless you happen to get a movie deal out of it.

    Yeah yeah, so when the EU commission fines Microsoft for hundreds of milions of $ is it justice or revenge ?
    Class actions are a fundamental right in a consumer society. It is one of those checks and balances necessary for keeping corporations "honest". Doing away with class actions is akin to saying to corporations do what the fuck you want. Consumers have no way to fight against you. What an ideal situation.

  24. Re:Class Action Everyone looses except for the law by Anonymous Coward · · Score: 0

    Yep. I've gotten numerous notices of being qualified in or part of a class action lawsuit over the years, and I don't bother responding any more because I know I'll never see anything other than a useless coupon or some other crap, meanwhile the lawyers get rich and the customers -- often including myself -- have to pay more to make up for the lawyers' pay day. Generally speaking, the lawyers behind such lawsuits are the same species of scum as the ones behind the TV ads looking for people who've been injured or had side effects.

  25. Re:Class Action Everyone looses except for the law by wbr1 · · Score: 1

    It is not just about the money. Class action can also be used as a cudgel to change corporate behavior. It is one more weapon against heinous, negligent, and usurous actions.
    Sorry we cheated, used, and/or sickened thousands, but nya_nyaa you can't touch us.
    If you're not bent over yet, get ready for the rape. Don't worry, thete is plenty of TMZ and Fox News to distract you from the pain.

    --
    Silence is a state of mime.
  26. Re:Class Action Everyone looses except for the law by gallondr00nk · · Score: 1

    You you loose, the company looses. The only one getting big money are the lawyers, unless you happen to get a movie deal out of it.

    I can understand your point about lawyers, but part of the whole idea of class action suits are to bring an offending company to task.

    Without class action, how else can that be done? Individual lawsuits? That has the burden of being able to afford to do such a thing in the first place, and the awards will never be large enough to act as a deterrent. Companies would just pay out and carry on. Prosecution by the state? That doesn't sound entirely appealing either, especially considering how cozy the government gets with large corporations.

    It seems to me that removing class action suits just further insulates companies from their actions.

  27. What about the law? by WromthraX · · Score: 2

    AFAIK no EULA or contract is above the law.

    1. Re:What about the law? by Anonymous Coward · · Score: 0

      It is when the Supreme Court says "Fuck You, It Is".

  28. Re:eBay? by Anonymous Coward · · Score: 0, Funny

    Oh look someone who hasnt used ebay in a few years with a snarky remark!

    This is going to come as a shock to you. Yes people still use those services. Just like people still use slashdot (which has gone borderline tabloid).

  29. Re:Class Action Everyone looses except for the law by dkleinsc · · Score: 1

    So without class action, what exactly is the reason a company won't try this:
    1. Overcharge all customers by $30.
    2. Refuse to refund the money.
    3. If anybody goes to the time and expense of suing them in small claims court, concede and refund the money and the 1 hours' worth of the attorney's time ($300 or so).

    This strategy is profitable so long as less than 10% of the customers affected don't go after them. And because it's not in fact worth my time to haggle over a $30 overcharge, chances are I won't. With a class action, somebody else can take the initiative, file the suit on my behalf, and I can get my $30 and the lawyers can get an extra $10 per person on top of that as punative damages. The only real loser in that scenario is the scammer.

    --
    I am officially gone from /. Long live http://www.soylentnews.com/
  30. i'm glad to live in Québec (Canada) by A+little+Frenchie · · Score: 1

    this kind of clause are void here! we are "protected" from abusive clause. sadly, we are also excluded from many thing because of it :-p

  31. Class action suits =! regular lawsuit by bleh-of-the-huns · · Score: 1

    While they can force you into arbitration rather then a class action suit, you still have the right to sue them as an individual, that right has not been taken away.

    Of course, the costs involved are high, going up against a corporation with an entire team of lawyers is going to be very expensive, and they would most likely bankrupt an individual before anything ever makes it to trial. I also do not see to many lawyers taking this case on contingency as the potential to win is very very low.

    --
    I came, I conquered, I coredumped
    1. Re:Class action suits =! regular lawsuit by tomhath · · Score: 1

      I suppose you could file an individual suit, but the point seems to be having most disputes settled by arbitration rather than lawsuits.

  32. German Situation by Anonymous Coward · · Score: 4, Informative

    Here is the situation for Germans:

    As long as you are a CONSUMER, i.e. a private buyer or seller, that clause is invalid, since law requires such an arbritration clause to be settled in an entirely separate contract, and to be signed in person OR digitally as defined in BGB and SigG (there is almost no way to satisfy those requirements for a company like ebay or Valve at the moment).
    If you are a COMMERCIAL seller (indication: you must accept returns), then the clause is indeed binding.

    There is NO customer protection AT ALL in EU regulations in that regard.
    The situation WILL differ depending on your country.

  33. Pharmaceutical's by what2123 · · Score: 1

    I'm surprised Big-Pharma hasn't taken a chance to jump on this.

  34. difference between theory and practice by RobertLTux · · Score: 4, Informative

    the big problem is since the arbitration company is paid for by the company they will automatically be biased in favor of KEEPING THE CONTRACT.

    so yes you could in theory sue over the arbitration not being fair but you agreed that the arbitration was BINDING.

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    1. Re:difference between theory and practice by Baloroth · · Score: 1

      And again, the arbitration is legally binding under federal law if and only if it is fair. So an unfair result allows you to sue.

      --
      "None can love freedom heartily, but good men; the rest love not freedom, but license." --John Milton
    2. Re:difference between theory and practice by Anonymous Coward · · Score: 1

      Except for in most cases, fairness is measured such that the arbitration is ok as long as it isn't "arbitrary and capricious." Which basically looks at whether the arbitration decision is based on any evidence (even if it is not the same evidence the arbitrator used) and has some logical reasoning from the evidence to the conclusion.

  35. Re:Class Action Everyone looses except for the law by Anonymous Coward · · Score: 0

    A $100? I've never got more than $4. I just got a check in the mail for 44 cents from a google settlement. Class action lawsuits are a joke.

  36. Sour Kangaroo by tepples · · Score: 1

    I always associated kangaroo courts with Australians or perhaps Dr. Seuss

  37. Re:Class Action Everyone looses except for the law by Kjella · · Score: 3, Insightful

    If you get $100 bucks you're lucky, my impression is that most are much lower. But as far as I understand, that's sort of the point of class action. Each person hasn't been harmed much and doesn't deserve a huge award, but if the company scams 1000000 people for $100 each they make a cool $100 million so the point is to punish the corporation. The problems are twofold:

    1) The class action lawyers don't act in their clients' best interest. They want to rack up as huge a legal bill as they possibly can, knowing each client is again too small to complain about it since s/he's 1/1000000th of their case. Either by spending time in court or more commonly by settling in a way that's favorable to the lawyers and unfavorable to everyone else. Class actions should be done on commission, if you want to get paid more you have to settle for more. That'd put the incentive back in the right place trying to extract as much money as possible for your clients.
    2) Extremely often the settlement doesn't actually involve cash, in involves a voucher or a discount for your next purchase even if you don't ever want to do business with them again. Not to mention people often never get around to spending them because they can't find anything they want to buy - even with the discount and it is forgotten or lost. Particularly for software the value is simply the sales value, it costs them nothing to churn out more copies. This could also be solved by requiring the payout be in cold hard cash.

    --
    Live today, because you never know what tomorrow brings
  38. Re:Class Action Everyone looses except for the law by godrik · · Score: 1

    which gives incentives to the company not to do shit that will get them involved.

  39. Re:Class Action Everyone looses except for the law by Hatta · · Score: 1

    Class actions are less about justice but revenge.

    Punishment is not revenge. The point of class actions is to deter future bad behavior. I don't care if a class action suit makes the lawyer a hundred million dollars and I get nothing. If it stops the behavior in the future it's done its job.

    --
    Give me Classic Slashdot or give me death!
  40. Not really true by SmallFurryCreature · · Score: 1

    If a contract has an invalid clause, it can be ruled to be null and void in in its entirety, this is done PRECISELY to avoid what you said, try crap in your contract to see if you can get away with it and the judge will just award the case to the other side. It rarely goes this far because by that time a lawyer will advise the offending party to settle or risk getting their ass chewed out and usually companies listen.
     

    --

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    You may solo them, I prefer them in a group.

    1. Re:Not really true by number11 · · Score: 1

      If a contract has an invalid clause, it can be ruled to be null and void in in its entirety, this is done PRECISELY to avoid what you said, try crap in your contract to see if you can get away with it and the judge will just award the case to the other side. It rarely goes this far because by that time a lawyer will advise the offending party to settle or risk getting their ass chewed out and usually companies listen.;

      Most contracts have a "severability clause" that says that if any clause in the contract is invalid, the rest of the contract stands without it. And guess what, eBay does too. That might not be valid everywhere, but it's standard in the USA.

      Severability

      With the exception of any of the provisions in Section 1 of this Agreement to Arbitrate ("Prohibition of Class and Representative Actions and Non-Individualized Relief"), if a court decides that any part of this Agreement to Arbitrate is invalid or unenforceable, the other parts of this Agreement to Arbitrate shall still apply. If a court decides that any of the provisions in Section 1 of this Agreement to Arbitrate ("Prohibition of Class and Representative Actions and Non-Individualized Relief") is invalid or unenforceable, then the entirety of this Agreement to Arbitrate shall be null and void. The remainder of the User Agreement and its Legal Disputes Section will continue to apply.

    2. Re:Not really true by SydShamino · · Score: 1

      That doesn't invalidate the parent's point. Once you are in court and a judge has the ability to decide in favor of either party, if he thinks the contract is bogus he can decide at any time for the other side, ignoring anything else in the contract regardless of such a clause. Judges are supposed to be fair and impartial, but screw with one in his/her court and he/she is supposed to bring down the hammer.

      --
      It doesn't hurt to be nice.
    3. Re:Not really true by Anonymous Coward · · Score: 0

      The thing is, the "severability clause" is also part of the contract which the judge could rule invalid, so you know... not actually a barrier to a judge ruling the entire contract invalid because they tried to go too far.

  41. PayPal has done this before and lost by djl4570 · · Score: 4, Informative
    From Wikipedia:

    In August 2002, Craig Comb and two others filed a class action against PayPal in, Craig Comb, et al. v. PayPal, Inc.. They sued, alleging illegal misappropriation of customer accounts and detailed ghastly customer service experiences. Allegations included freezing deposited funds for up to 180 days until disputes were resolved by PayPal, and forcing customers to arbitrate their disputes under the American Arbitration Association's guidelines (a costly procedure). The court ruled against PayPal, stating that "the User Agreement and arbitration clause are substantively unconscionable under California law," noting their unjustifiable one-sidedness and explicit prohibition of class actions produces results that "shock the conscience" and indicate PayPal was "attempting to insulate itself contractually from any meaningful challenge to its alleged practices"

  42. does anyone still use ebay and paypal? by Dan667 · · Score: 0, Troll

    everyone I know stopped using them years ago.

    1. Re:does anyone still use ebay and paypal? by Westwood0720 · · Score: 0

      everyone I know stopped using them years ago.

      I've used them twice. Each time I had issues with them. The only safe way to do any transaction today is cash or get the fuck out.

    2. Re:does anyone still use ebay and paypal? by Anonymous Coward · · Score: 0

      Why is this comment worthy of +4 informative? It doesn't inform anyone of anything other than that a tiny subset of people (on the order of 10 or 20 at most) no longer use a couple services. It's not even on topic.

    3. Re:does anyone still use ebay and paypal? by Overzeetop · · Score: 0

      Nobody uses them anymore - they're way too busy with transactions to do anything useful about customer service. (wish there were a :rolleyes: smilie, just this once)

      --
      Is it just my observation, or are there way too many stupid people in the world?
    4. Re:does anyone still use ebay and paypal? by Anonymous Coward · · Score: 0

      Well, what do they use instead for e-commerce?

    5. Re:does anyone still use ebay and paypal? by Darinbob · · Score: 2

      I never used paypal. I used ebay once then canceled my account (after arguing with the rep that I didn't care if this messed up my once-only buyer reputation). I will never use ebay if I must also use paypal or some other faux bank or internet payment service. Also there's not much reason to use them anymore, they have ceased to become merely a go-between for non-commercial sellers to find customers but have become a marketplace primarily for commercial sellers. I'd rather head to Amazon or something like that if I'm going to buy from a business.

    6. Re:does anyone still use ebay and paypal? by Darinbob · · Score: 1

      What e-commerce? Many people ignore that altogether. Those that don't will often go to direct sellers. And paypal is almost always a bad idea to use, very unsafe, very unsavory. Ebay requires paypal or similar payment services for many services (if they buyer decides not to accept credit card transactions). So it's more convenient if you're a smart person who avoids paypal to also avoid ebay.

  43. AFAIK by Anonymous Coward · · Score: 0

    Since the supreme court ruled class action lawsuits are valid, I do not think even a EULA can override that. It may depend on state laws, but in essence no EULA is valid, especially when there is no ownership or product. Its one thing to buy software and have a license agreement, but you do not purchase anything from Ebay, so their EULA is even less valid.

    Eventually this will be tested in court.

  44. Bitmit by Anonymous Coward · · Score: 0

    Screw ebay. I list things for sale on bitmit now. I've sold quite a few things there too.

  45. Re:Class Action Everyone looses except for the law by Anonymous Coward · · Score: 0

    From OP:

    If you win a big case you usually get like 100 bucks out of the deal (A lunch for two at a 2 star restaurant).

    Nice restaurant?

    If you're paying $50 per person at a 'two star' restaurant, you're getting raped harder than Akin is raping the election.

  46. Valve? by Anonymous Coward · · Score: 0

    Valve? I thought they were one of the good guys?

  47. Re:Class Action Everyone looses except for the law by Anonymous Coward · · Score: 1

    Correct me if I'm wrong, but doesn't arbitration mean that the proceedings and decisions don't enter into the public record either? Monetary damages are one thing, but chances are, bad publicity is far worse.

  48. Issues are more nuanced by Anonymous Coward · · Score: 3, Informative

    This is a subject on which I have experience. I am an arbitrator. I occasionally am asked to decide consumer cases, but that is not my primary area. I have nothing to do with ebay arbitrations. I know a good bit about the American Arbitration Association.

    The issues here are not simple, and there are rational arguments both ways. I'll leave PayPal out of this discussion, since they may be a different case. But, I think there are good things about arbitration from the consumer's end of things.

    First, arbitration as structured under the ebay user agreement is straight up, no funny business. The arbitration process is administered by the American Arbitration Association, which is pretty widely respected as being thoughtful and above-board in their management of the arbitration process. AAA does a good job of training arbitrators. AAA does not direct or control the outcome. Think of them as the clerks office at the courthouse. They manage the process, keep records, recruit and train arbitrators, but do not get involved in deciding the case.

    Keep in mind that an ebay transactions are likely to be small. A few dollars to a few hundred dollars. I'd guess that larger transactions are less common. How likely are you to hire a lawyer to file suit against eBay over their mishandling of a few hundred dollars? Would you really want to travel across the country for a day long trial over a $500 claim? Over a $100 claim?

    By providing for disputes to be resolved by arbitration the following happens:
    - The parties have a direct say in choosing the arbitrator. You can ding anyone on the list that you don't like the looks of.
    - The proceedings are informal and expedited. This reduces the cost of getting to trial, a trade-off which seems appropriate to me for a case of modest size.
    - The final hearing (i.e. the trial) takes place by telephone or is decided by written submissions. Again, would it be worth it to fly across the country to a trial over $500?

    AAA does not decide the case. The arbitrator decides the case. This distinction is important. Most arbitrators are experienced, and widely respected, lawyers who have a practice focused on the area of the law in which they hear cases. Many arbitrators are practicing lawyers, who do a small number of arbitrations. Some arbitrators are full time neutrals. An arbitrator obtains future work as an arbitrator only being acceptable to BOTH sides of a case. In my experience lawyers talk to each other. An arbitrator who gets a reputation for making bone-headed decisions on a case will quickly find him/herself out of work. An arbitrator who gets a reputation for being the pawn of one side or the other is done, end of career as an arbitrator. Similarly, an arbitrator who simply "splits the baby" and not really making the hard call of who wins/who loses under the law is also likely to find that he/she has not future assignments as an arbitrator. It is not unusual for me to be selected to serve as an arbitrator by a lawfirm where I have previously ruled against one of their clients in an earlier case.

    Yes arbitration does not provide the exact same trial process as a jury trial at the courthouse. But very few cases filed at the courthouse go to trial. Say, 5% or so. My experience in arbitration cases is that the vast majority of consumer arbitration cases do get to trial. There is genuine concern that we have created a litigation process so expensive that almost no one can afford it. Consumer arbitration under the AAA rules provides a way to get a small claim heard quickly, and at modest cost. I think this has real value.

    Some will say that the restriction of class actions means that big companies are free to lie, cheat and steal. I've seen a big company facing scores of consumer arbitration cases under rules very similar to those set by ebay. The company's cost of trying those cases is much higher than it would be under a class action. Plus, under a class action one trial and you are done with every one. In this process, the company has to try or set

  49. Re:eBay? by j00r0m4nc3r · · Score: 0

    Yeah but last I checked Slashdot isn't owned by PayPal

  50. FUNNY by Anonymous Coward · · Score: 0

    All the EULAs in the world can't dictate that. In the end, it is the court that decides what is allowed.

  51. So? by chill · · Score: 0

    Honestly, what Class Action suit hasn't resulted in a windfall for the lawyers involved and a token payment for any plaintiffs?

    Fuck the lawyers.

    --
    Learning HOW to think is more important than learning WHAT to think.
  52. Re:eBay? by Widowwolf · · Score: 0

    Yes but neither does Ebay...Ebay owns Paypal..not the other way around

    --
    ~~"Of course, that's just my opinion. I could be wrong." ~~Dennis Miller
  53. make a throwaway account, your bank will help by Anonymous Coward · · Score: 3, Informative

    I had this problem too after many years of buying junk on ebay, unfortunately many otherwise good sellers will only take paypal :(

    Solved by:
    -Call bank, create new checking account
    -(optional) create short name/nickname for account for use on website/apps/etc. (suggestions: "I hate paypal" or "paypal sucks" or "***** paypal")
    -Ensure this account is not linked to any other account in any other way at all. No overdraft, no protection, no nuttin'. Triple verify this with your bank, many will "helpfully" set these up by default.
    -transfer $25 or whatever minimum is to account
    -continue to use credit card on every purchase (paypal will use 5000 different website tricks to make sure this is not your default method, so you have to select it every time, annoying as hell but whatever)
    -$profit$ by not risking more than $25 to their crappy crooked methods

    The bank employee that did this for me over the phone was not surprised at all, they had done similar for people several times before.

    1. Re:make a throwaway account, your bank will help by shutdown+-p+now · · Score: 1

      You don't need a PayPal account to pay through PayPal, though. Just say that you don't once you get redirected there, then you can input CC info etc.

      Of course, it's also a good habit to avoid PayPal altogether, inasmuch as this is possible for things you need to buy.

    2. Re:make a throwaway account, your bank will help by no-body · · Score: 1

      Easier:

      - open bank account
      - link bank account to PayPal
      - close bank account
      - do all transactions with CC
      - leave no cash on PayPal

  54. Mother fuckers by Anonymous Coward · · Score: 0

    The right to a jury trial shall not be infringed. You can't just sign away your rights!

  55. Re:Class Action Everyone looses except for the law by qbast · · Score: 1

    Class actions are supposed to be deterrent. If company has to pay $100 * 1000000 + legal fee, then they will think twice before pulling the same shit again.

  56. If it hasn't been mentioned already by baresi · · Score: 1

    If some body or a group of people are really serious about an issue that arises from this they can take eBay to court for the EULA itself. If I bury a line in my product EULA that I have the right kill all users and (even) 1% miss it and accept the EULA it doesn't mean it can stand in a court of law.

    --
    RGdot.com
  57. p r i v a c y by Penurious+Penguin · · Score: 1

    I recently started selling on Ebay. Having previously used the account mostly for purchases, I never really worried much about feedback. When I began paying more attention to it, I realized that all my purchases were visible to others. This immediately pissed me off. My purchases were nothing unusual, but anyone could peruse them at will, potentially connecting them to my actual identity.

    I called Ebay Support and complained. They informed me that I could make my purchases semi-private, but it would disable my ability to sell. So, I could not make my purchases private while keeping my sales transparent. They recommended I start a new account used only for purchases, with a user-ID non-descriptive of my actual identity. I continued to complain and argue (yes, futilely) and said I was nearly inspired to start a blog on this disturbing policy and also that a class-action lawsuit seemed a real prospect.

    Most Ebay users never consider when registering that their purchases will be totally open for anyone to see. Because of this, the names they create are often related to their real identity. I began researching a bit and quickly found instances where items like sex-toys were openly displayed in user's public purchasing history. In another instance a user had complained that their kids were able to anticipate Christmas gifts because they had known their parents Ebay ID.

    The complaints are many and not limited to privacy, but that is primarily what has concerned me. Ebay/Paypal is a shitty company. They are directly misleading with listing-fees too. When I complained about this, they said it was all in the user-agreement. My response was to ask what operating system the rep was using, which was Microsoft. I then asked if she had read the entire Windows user-agreement, to which she predictably answered "No". I reminded her that she was using it despite this admitted fact. I am not always intelligent, but I think I am adequately enough to see a listing-fee before agreeing to it. But I've definitely had a few surprises and unexpected fees along the way.

    Anyway, I am not surprised about this news. I wish their were viable alternatives, but it looks like shitty service is the future. It would take more than a tremendous effort to get such companies to reconsider their abusive policies. Seems all we can do now is give them a class-action FUCK YOU!

    --
    Forward! -- Emperor Norton, 2012
  58. Re:Class Action Everyone looses except for the law by hobarrera · · Score: 1

    The idea behind "the company loosing" is to de-motivate it and other companies to do the same.
    For example, if paypal takes everybody's money away to a total of 50M, and looses 100M in a class action lawsuit, they'll certainly think twice about doing it again. And so will other similar companies.

    In many cases, justice is about setting an example and de-motivating others from doing the same (bad) thing.

  59. Re:Class Action Everyone looses except for the law by mcgrew · · Score: 1

    Since English isn't your first language, I hope I'm helpful in pointing out that "loose" means "set free". E.g., "he looses his dog every morning. Cry havok, and loose the dogs of war". The word you're looking for is "lose."

    I blame Suse, (and they also speak in a different native tongue). When I gave it a try ten years ago, a warning said "you may loose data". I wonder if that typo is still there?

  60. eBay's opt-out address is a house in Utah. by Animats · · Score: 2

    Ebay insists you opt-out by paper mail:

    You must mail the Opt-Out Notice to eBay Inc., c/o National Registered Agents, Inc., 2778 W. Shady Bend Lane, Lehi, UT 84043.

    This appears to be somebody's house.

    1. Re:eBay's opt-out address is a house in Utah. by Anonymous Coward · · Score: 0

      I bet they have lots of extra coverage in the event of a fire.

    2. Re:eBay's opt-out address is a house in Utah. by Disfnord · · Score: 1

      Must be the corporate pool round back.

  61. Re:Class Action Everyone looses except for the law by Anonymous Coward · · Score: 0

    Sadly we do not see penalties that exceed the profits made by wrong doers. A million dollar fine sounds good to the public but when a company has a take of fifty million and only has to pay one million in fines the laws actually become an open encouragement to commit crimes. If a company takes in fifty million the fine should be one hundred million if the case is quickly resolved. If resolution will takes years due to litigation and appeals then the fines should be much higher. After all the stolen money is being used to earn interest for the offending company which in itself may be sufficient to pay the fines and the company in the end still profits from the wrong doing.

  62. nullify everything by neghvar1 · · Score: 1

    At this point, why don't they just modify their EULA to nullify every consumer protection law and civil right ever written since it appears that EULAs can override any law or right

  63. Re:Class Action Everyone looses except for the law by SecurityGuy · · Score: 1

    How is that better than them paying something that approximates the actual damage they caused? I've never gotten a class action settlement notice that was worth doing anything about it. Woo! A check for 23 cents! Into the shredder.

    As I understand it, a few people actually bring the lawsuit, and get actual money. Say $20,000 each. Then a million or so people get 23 cents each, and the lawyers get $500,000. This is a boneheaded system that works for the lawyers and really no one else. Instead, give each of the million people the same $20,000 the filers get. I know. OMG, that'll put companies out of business! Yes. Yes, it will. Perhaps screwing over a million people should put companies out of business. Perhaps then they'll stop doing it.

    Until then, class action lawsuits are merely a way to make lawyers rich.

  64. Re:Class Action Everyone looses except for the law by Anonymous Coward · · Score: 0

    It's spelled looose. Everyone loooses. They looose. You looose. The company loooses.
    You're welcome.

  65. Re:Class Action Everyone looses except for the law by Darinbob · · Score: 1

    You may not win big if you are in on a class action, but what is more important is that the bad corporation loses. Class action suits are not about getting your $100 in the mail, but to prevent the corporation from selling automobiles that blow up or from claiming that cigarettes are healthy or dumping waste into the rivers. Companies used to treat these individual cases as just a minor cost of doing business and only the big class action suits made them change their ways. With binding arbitration the companies can go back to ignoring the health and safety of its customers and employees again, with the few arbitration cases that it loses being only a minor cost of business.

    It's better for some lawyers to get a lot of money than to let these corporations ignore the law with impunity.

  66. Re:Class Action Everyone looses except for the law by Darinbob · · Score: 1

    Most civil laws in the US and around the world rely on lawsuits. Someone has to bring a case against someone else and show that the law was broken. Regulators very often do not have the power to act as the police and bring their own lawsuits, and when they do have that power they may not have the resources. The regulators also depend upon their being an aggrieved party to use as a witness. Class action lawsuits assist in enforcing the laws here because it means that even in the case of small petty theft by a corporation (false advertising) there will be enough plaintants to bring a case. Individuals can not afford to bring lawsuits on their own against a large company or government entity. Binding arbitration undermines the laws because it eliminates the lawsuits, and will also eliminate the witnesses who will be prevented from testifying if they signed an agreement or settlement.

  67. Re:Class Action Everyone looses except for the law by Darinbob · · Score: 1

    With vouchers and the like I think this happens because the cases are settled out of court for a far less amount than if there had been an actual judgement of wrongdoing. But even then most of these settlements will require the defendant to change their behavior (stop lying in their advertisements, stop overcharging, pay for toxic cleanup, etc).

  68. Only Valid In The US! by mlauzon · · Score: 1

    '...Supreme Court of the United States ruled such tactics valid...'

    The SCUS may have ruled such tactics valid, but remember, they are only valid in the US, they cannot be enforced outside of the US!

  69. Class Actions by Anonymous Coward · · Score: 1

    Wow - a slashdot topic that I actually know what I'm talking about and I'm late to the party.

    I've worked for 15+ years for a company that administers class action settlements - so I have a definite bias here.

    Some are BS settlements/lawsuits involving technicalities where there were no actual damages (does it really matter if a tool is made in America - or assembled in America from 30% parts made here and 70% parts made overseas). This makes up around 10% of the cases that I've seen.

    On the other hand - there are a lot of instances where they are not. It's easier to steal $1 each from 1,000,000 people than it is $1,000,000. Whether or not it's underfilling product - conspiring with competitors to fix prices - or deliberately selling defective products - they aren't grey issues.

    Companies win with arbitration waivers because: 1) the government cant find everything (thing the SEC and Bernie Madoff); and, 2) no lawyer is going to take your case. Consumers will be hurt because of these decisions. Sure - 90% of companies do the right thing. That leaves the 10% hiding unsavory business practices.

    For the people who say "What class action hasn't resulted in a windfall for the lawyers involved and a token payment for any plaintiffs?" - there are a lot. You don't here about them because it's only the settlement where a check for $0.25 was mailed that makes the news (a practice I tell my clients not to do). It's been a great marketing campaign by the US Chamber of Commerce.

    I can send out letters to 1,000 people -- telling them each that they'll get $1,000 - and only 100 will respond. That's a real $1,000 by the way. There are times when you cant give away money.

    If you don't like a settlement - write the judge. Object. Complain in writing. Better yet - show up ion Court at the hearing and ask to speak. A full Federal judge will let you talk about the evils of the settlement as long as you reasonably want. Maybe you'll influence them - who knows - but they'll let you talk and let your message get into the record. Judges actually care about these comments.

  70. So where's the auction rival to challenge ebay? by Anonymous Coward · · Score: 0

    There needs to be an alternative, other than Amazon.

    Anyway, as far as buying/saving on eBay goes:

    If you have a question about an item, go to another of the seller's listings and ask the question from there. This will add a bit of work for the seller, if they want to add your question and their answer to the item description page. Maybe other interested buyers will not bother to ask a question, instead just continuing to look for a similar item that already has the question answered in the item description.

    If you see an item that you want listed in auction format, send the seller a message asking if they will accept $x to end the auction early and sell the item to you. If that doesn’t work, use a sniping service such as Bidball.com to bid for you. It’ll bid in the last few seconds, helping to save $ and avoid shill bidding.

    If there is a particular item that you want that is relatively rare on eBay or goes fast when one is listed, use ebuyersedge.com to set up a saved eBay search for it. You’d get an e-mail whenever a match is listed. You can use the price, category, exclude word, etc. filters to narrow down the results that you get in the e-mails. Excellent for “Buy It Now”s priced right.

    If the item that you’re looking for is difficult to spell, try a misspelling search site like Typojoe.com to find some deals with items that have main keywords misspelled in the title. Other interested buyers may never see them.

  71. Finnish Situation by Anonymous Coward · · Score: 0

    If you are a consumer, this clause is invalid here too. Consumer protection laws are "bounding laws" (not sure if that's the correct translation), which means that you can't sign them away even if you want to. In other words, a contract can never strip away things such consumer's right to warranty... not to mention the right to sue!

    I personally find it absurd that you can sign away your right to sue in some countries. Can you also sell your freedom and thus legally become a slave to someone? If not, why not?

  72. hmm..pff by Anonymous Coward · · Score: 0

    excuse me judge but I did not click on the aggrement I just used the program somone else did the agreeing.

    ()-()

  73. Ebay??? by Somebody+is+Grar · · Score: 0

    Do people still use that fraudulent service? I have had HUGE fees extracted with notification only after the sale. I have had PayPal try to deduct funds from my bank account for a fraudulent eBay transaction and adamantly refuse to respond to my complaints and I have finally and forever stopped using either one. That company should have been sued into oblivion years ago, and now people are agreeing not to seek real, impartial relief? Well, stupid is as stupid does; if you really think they are only trying to facilitate online selling, good luck to you.

    --
    Grar II