{"id":368888,"date":"2021-12-28T06:30:23","date_gmt":"2021-12-28T11:30:23","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/litigation\/filing-a-lawsuit\/can-i-sue-a-seller-on-an-online-marketplace.html"},"modified":"2024-01-10T08:15:08","modified_gmt":"2024-01-10T13:15:08","slug":"can-i-sue-a-seller-on-an-online-marketplace","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/litigation\/filing-a-lawsuit\/can-i-sue-a-seller-on-an-online-marketplace.html","title":{"rendered":"Can I Sue a Seller on an Online Marketplace?"},"content":{"rendered":"\n
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Can I Sue a Seller on an Online Marketplace?<\/h1>\n\n
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\n By Steven Ellison, Esq.<\/a> | Legally reviewed by Joseph Fawbush, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Yes, you may be able to sue an online retailer on an e-commerce platform like eBay, Esty, or Amazon. Yet, you might not have to start a lawsuit to solve the problem. If other methods don’t give you a fair solution, legal action could be the next step.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

A sale between a seller and a buyer on a platform like eBay is a contract. However, eBay is not a party to that contract; it is the online marketplace.<\/p>\n

When a platform is not the direct seller of a product, you might wonder what its role will be if something goes wrong with your purchase. This article describes the legal options when you have a dispute with the seller. If you have more questions, check with a litigation attorney<\/a> about your case.<\/p>\n

Scammed by a Seller?<\/h2>\n

If you do not get what you paid for or the product you receive is “significantly not as described” (SNAD), you may have a breach-of-contract claim against the seller.<\/p>\n

You may not need to take legal action, however. You may be able to work out your dispute directly with the seller. eBay makes the process simple. If you can’t work it out with the seller on your own, you may be able to work it out by following the procedures set out in eBay’s policy and user agreement.<\/p>\n

Your payment method may also give rise to options. If you paid with PayPal, you may be able to take advantage of PayPal’s Buyer Protection Program. If you paid by credit card or debit card, you can open a fraud dispute with your provider. In any case, you can always file a complaint with the\u00a0Better Business Bureau<\/a>.<\/p>\n

Do You Need a Lawyer To Sue an Online Seller?<\/h2>\n

You may be able to handle a dispute with a seller on your own. Having a lawyer in your corner, however, may give you leverage.<\/p>\n

If you do need to sue an online seller,\u00a0especially one that is out of state, you should consult with\u00a0a litigation attorney<\/a>\u00a0who can provide you with legal advice and represent you. There are challenges to proceeding this way, and you will likely appreciate the help.<\/p>\n

What To Know About E-Commerce Platforms<\/h2>\n

E-commerce platforms include websites like Amazon, Walmart, Craigslist, and eBay. They enable sellers to list their products online and give shoppers an easy, consistent purchasing experience. Estimates from previous years place the number of e-commerce sellers globally at between\u00a012 and 24 million<\/a>\u00a0online stores.<\/p>\n

Although Amazon.com\u00a0sells its own products and hosts online sellers as part of its marketplace, eBay operates exclusively as an e-commerce platform for online businesses. It used to function\u00a0as an auction house for third-party sellers, but now many of its\u00a0sales are done using eBay’s \u201cbuy it now” feature.<\/p>\n

We will focus here on online eBay sellers. If you want to try to\u00a0sue eBay itself<\/a>, we discuss that elsewhere.<\/p>\n

What If I Get Into a Dispute With an Online Seller on eBay?<\/h2>\n

Most online transactions have zero problems. The seller gets paid, and the buyer gets a new eBay product.\u00a0Everyone is happy. Sometimes,\u00a0a problem arises. If one does, you have a number of options.<\/p>\n

Option One: Try To Work It Out With the Seller<\/h3>\n

Your first option should not be a lawsuit, no matter how angry and frustrated you are. In fact, in most cases, you won’t need to go to court.<\/p>\n

If you don’t receive an item or if the item you receive is SNAD, start by trying to work it out with the seller. You can\u00a0communicate with them directly<\/a>\u00a0through eBay. Let them know what\u00a0the problem is. If you can, be prepared to provide support, such as\u00a0a picture of the item you may have received showing the issue.<\/p>\n

eBay sellers, particularly large sellers, have an interest in keeping their customers happy. Negative feedback is at best unwanted and can be harmful to a seller’s reputation. If you can’t work it out and do decide to leave negative feedback, follow the process outlined<\/a>\u00a0on eBay’s website. You can always leave a good seller positive feedback too.<\/p>\n

Option Two: Take Advantage of eBay’s Money-Back Guarantee<\/h3>\n

If you give the seller a chance and are still unsatisfied, you can leave it up to eBay. According to its\u00a0website<\/a>, eBay’s\u00a0Money Back Guarantee<\/a>\u00a0covers most transactions. That means that in most situations a buyer who purchased something through their eBay account can get a full refund if it doesn’t arrive, is faulty or damaged, or if it doesn’t match the listing.<\/p>\n

Not every eBay transaction is covered by the policy. Make sure to read eBay’s full policy listing\u00a0all eBay’s terms and conditions\u00a0with care. There are also time limits, so if you need to take advantage of the policy, don’t wait too long. Note that you may be required to return an item if it doesn’t match the listing.<\/p>\n

Option Three: Use PayPal’s Buyer Protection Program<\/h3>\n

Many eBay transactions take place through PayPal,\u00a0which used to be owned by eBay but was spun off. If you have a PayPal account and paid with PayPal, your third option is to go through\u00a0PayPal’s Buyer Protection Program<\/a>.<\/p>\n

Again, you should\u00a0start by\u00a0trying to work it out with the seller. You have 180 days to dispute the charge in PayPal’s Dispute Resolution Center. If you can’t work it out with the seller, you have 20 days from the date the dispute is opened to escalate the dispute to a\u00a0claim\u00a0with PayPal. PayPal will take it from there.<\/p>\n

They will investigate your claim and get back to you, typically within 10-14 days but sometimes\u00a0as long as 30 days. If they decide in your favor, you’ll\u00a0get your money back.<\/p>\n

Option Four: Dispute the Charge With Your Bank or Credit Card Company<\/h3>\n

Maybe you paid with your credit or debit card. If you don’t receive an item or it doesn’t match its listing, you can dispute the charge with your credit or debit card company.<\/p>\n

The typical process is that you contact your bank. You describe your complaint. They then open a claim and conduct what is essentially a fraud investigation. You may want or need to file a police report. If your bank finds in your favor, once again you get your money back.<\/p>\n

Option Five: Bring a Lawsuit<\/h3>\n

Maybe you have no luck. You are unable to work out your dispute with the seller directly. Your transaction, for whatever reason, is not covered by eBay’s money-back guarantee. PayPal’s or your card company’s investigation doesn’t result in your favor.<\/p>\n

You still have the option of filing a lawsuit.<\/p>\n

How To Sue an eBay Seller<\/h2>\n

If you go this route, you should think about bringing in a lawyer. There are challenges to suing an online seller.<\/p>\n

Finding the Seller<\/h3>\n

The first challenge is finding them. In virtually every state, if you want to sue someone, you need to\u00a0serve them with a copy of initial papers, often\u00a0a\u00a0Summons<\/a>\u00a0and a\u00a0Complaint<\/a>. That\u00a0means you have to formally give them written notice of your legal claims and spell out the relief you seek.<\/p>\n

To serve an online seller, you need their contact information. Many large, reputable sellers provide their contact information online, so serving them may not be difficult.<\/p>\n

Not all sellers are so obliging. Some seem determined to hide, especially from customers they have wronged. You may end up having to conduct a search. A lawyer with the right resources might be able to help you locate an online seller.<\/p>\n

Finding the Jurisdiction<\/h3>\n

Once you find the seller, the second challenge is locating a court that has power over them.\u00a0Jurisdiction\u00a0is the term lawyers use to describe the power of a court to decide a dispute.\u00a0<\/p>\n

There are two types of jurisdiction: subject matter and personal.<\/p>\n

Subject Matter Jurisdiction<\/h3>\n

The first is subject matter jurisdiction. That essentially means that a court has the power to decide the type of dispute at issue. Most state and federal courts would have subject matter jurisdiction over your breach of contract claim against an online seller.<\/p>\n

Personal Jurisdiction<\/h3>\n

The second type of jurisdiction poses more of a problem for you. It’s called\u00a0personal jurisdiction<\/a>. That essentially means that a court has the power to bind someone by its decision.<\/p>\n

On its face, the standard for personal jurisdiction is pretty straightforward. A court has personal jurisdiction over a defendant, which is\u00a0the party being sued,\u00a0if they have sufficient contacts with the state in which the court sits such that it is fundamentally fair to legally bind them to a decision.<\/p>\n

In practice, personal jurisdiction can be very complicated. The law isn’t\u00a0clear, can\u00a0change\u00a0from time to time, and the answer to the question ultimately depends on the facts of your particular situation. You would need a lawyer to help you answer personal jurisdiction questions. Understand\u00a0that individual lawyers may disagree about whether personal jurisdiction exists in any given case.<\/p>\n

How To Know Which Court To File With<\/h3>\n

To determine whether a court has personal jurisdiction over an eBay seller, you would look at the contact that the seller has had with your state.<\/p>\n

Among other factors, you would try to find out where the business is located. Having its business offices in your state is a contact. If it has a warehouse in your state, that too is a contact. The larger the physical presence in a state, the more likely a court will find jurisdiction.<\/p>\n

You would also try to find out how many sales took place to people in your state. Sales\u00a0can also\u00a0count as a contact. The more business an online seller does in a state, the more likely a local court is to have personal jurisdiction over them.<\/p>\n

Precisely how much business the seller does, however, is up to a judge to determine. As you can see, this gets complicated. If you anticipate a fight over personal jurisdiction, you should consult a\u00a0litigation attorney<\/a>.<\/p>\n

Class Action Lawsuits<\/h2>\n

Maybe during your research, you discovered\u00a0that you are not alone. Suppose this online seller has been scamming all of their customers. In some limited situations, you may be able to group your claims with those of other people and bring what’s called a\u00a0class action<\/a>\u00a0against the seller. An\u00a0experienced class action lawyer<\/a>\u00a0can help advise you about whether your case is an appropriate class action.<\/p>\n

Another Option: File a Complaint With the Better Business Bureau<\/h2>\n

You do have another option. You may find some satisfaction in filing a complaint with the Better Business Bureau (BBB). As they say on their\u00a0website<\/a>, the BBB maintains standards for truthful advertising, investigates claims of fraud, and provides information to consumers before they buy a product.<\/p>\n

Leaving a negative review for an online seller won’t get you your money back, but it will provide some warning to other consumers and prevent someone else from being scammed. You may want to leave a negative review on the retailer’s social media account as well.<\/p>\n

If You Decide To Sue, You Should Consult a Lawyer<\/h2>\n

Buying products through eBay carries risks. Although most sellers conduct their businesses with honor, not all do. Sometimes problems arise that aren’t the seller’s fault. FedEx, UPS, and the USPS make mistakes from time to time, too.<\/p>\n

If you buy on eBay and your product doesn’t arrive or match its description, don’t panic. The seller has an interest in keeping you happy and is likely to be willing to work with you. You may have good luck. If you’re unhappy with that outcome, you may be able to get a chargeback,\u00a0including what you paid in shipping costs,\u00a0through eBay, PayPal, or your bank.<\/p>\n

If you are still unsatisfied, you can and, depending on the size of the claim, should consider a lawsuit. If the seller is based in your state, wonderful. You may be able to sue them in your local small claims court. If not, you will need to track them down and find a court where they can be sued.<\/p>\n

Suing an online seller can be complicated, so make sure to consult an experienced\u00a0litigation lawyer<\/a>\u00a0who can provide you with legal advice about whether a lawsuit makes sense, how much it may cost, and where you can file it.<\/p>\n

Keep in mind that no matter what you do, there may be time limits. If you don’t act promptly, you may be barred from bringing a claim.<\/p><\/div>\n\n\n

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