eBay Seller Disputes FAQ

When eBay rules in favor of a buyer through the Money Back Guarantee program, California sellers have several potential avenues for recourse. First, you can appeal the decision through eBay's Resolution Center within 30 days, providing additional evidence such as tracking confirmation, delivery photos, or communication records. Under California Civil Code Section 1636, contracts must be interpreted according to the parties' mutual intention, meaning eBay must follow its stated policies consistently.

If eBay fails to follow its own published procedures, you may have claims under California Business and Professions Code Section 17200 for unfair business practices. California Commercial Code Section 2607 requires buyers to notify sellers of defects within a reasonable time, which can be relevant in 'item not as described' disputes. Document all communications, retain shipping receipts with signature confirmation, and photograph items before shipping. For disputes involving significant amounts, California small claims court (up to $10,000) may provide a venue to recover losses from fraudulent buyers.

eBay account suspensions in California require immediate, strategic action to protect your selling privileges and pending funds. First, review the suspension notice in My eBay to identify the specific policy violation cited. Under California Civil Code Section 1639, contract terms must be interpreted to give effect to reasonable expectations, meaning eBay should follow its stated enforcement procedures. Submit an appeal through eBay's designated channels, addressing the root cause, immediate actions taken, and preventive measures implemented.

California Business and Professions Code Section 17200 prohibits unfair business practices, potentially applicable if eBay suspends accounts arbitrarily or without following stated policies. If funds are being held, California Financial Code provisions regarding payment processors may apply. Document your selling history, performance metrics, and any mitigating circumstances. For permanent suspensions affecting significant business operations, consider whether the suspension violates the implied covenant of good faith and fair dealing under California law. Consulting an attorney familiar with e-commerce platform disputes can help evaluate your options including arbitration.

California has comprehensive consumer protection laws that directly impact eBay seller disputes and obligations. The California Consumer Legal Remedies Act (Civil Code Sections 1750-1784) prohibits unfair and deceptive practices in consumer transactions, including misrepresenting product characteristics or quality. California Business and Professions Code Section 17500 makes false advertising unlawful, requiring accurate item descriptions and photographs.

The Song-Beverly Consumer Warranty Act (Civil Code Section 1790 et seq.) imposes implied warranty obligations on sellers of consumer goods, meaning items must be fit for their ordinary purpose. California Civil Code Section 1793.2 requires sellers to maintain or repair goods to match applicable warranties. These laws give buyers strong grounds to dispute transactions, and eBay often sides with buyers when descriptions are inaccurate. Sellers must ensure listings accurately represent condition, functionality, and any defects. Violations can result in eBay case losses, account restrictions, and potential civil liability including actual damages, statutory penalties, and attorney's fees under certain circumstances.

eBay's fund holds are governed by its User Agreement and applicable California financial regulations. Under eBay's Payments Terms of Use, the platform may hold funds for various reasons including new seller status, performance issues, or disputes. California Financial Code provisions regulate payment processing, and eBay Payments operates as a regulated entity. California Commercial Code Section 4401 addresses fund disbursement obligations, while California Civil Code Section 3287 allows recovery of interest on wrongfully withheld funds at 10% annually.

eBay typically holds funds for up to 21 days for new sellers or those with performance issues, and may extend holds during open disputes. If you believe funds are being held improperly, document the hold duration, stated reasons, and your compliance with policies. California Business and Professions Code Section 17200 may provide recourse for unfair fund holding practices. For significant amounts, consider filing complaints with the California Department of Financial Protection and Innovation or consulting an attorney about breach of contract claims. Small claims court may be available for disputes up to $10,000.

Item Not as Described (INAD) claims require careful defense under California commercial law and eBay policies. First, review your listing against the item actually shipped - California Business and Professions Code Section 17500 requires truthful advertising, so ensure your description was accurate. Respond to the claim within eBay's timeline (usually 3 business days) through the Resolution Center.

Under California Commercial Code Section 2313, express warranties arise from descriptions, meaning buyers can rely on your listing as a warranty of the item's characteristics. Your defense should include original listing screenshots, photographs of the item before shipping, and any communications with the buyer. California Commercial Code Section 2607 requires buyers to notify sellers of defects within reasonable time and provide opportunity to cure. If the buyer's claim is fraudulent, document evidence such as return tracking showing wrong item returned, or photographs showing damage inconsistent with shipping. For high-value items, consider requiring signature confirmation and insurance. Appeal unfavorable decisions with comprehensive documentation demonstrating listing accuracy and buyer bad faith.

Return fraud on eBay in California may constitute criminal conduct and provides several legal remedies for sellers. If a buyer returns a different, damaged, or empty item, this potentially violates California Penal Code Section 484 (theft by false pretenses) and Section 496 (receiving stolen property). Document the fraud immediately by photographing the returned item, packaging, and shipping label. Weigh the return package and compare to the original shipment weight.

File a police report with your local California law enforcement agency - this creates an official record and may support criminal prosecution. Through eBay, report the buyer for abuse and appeal any case decision with your fraud evidence. California Civil Code Section 3294 allows punitive damages for fraud in civil actions. Small claims court (up to $10,000 under California Code of Civil Procedure Section 116.221) provides a venue to sue fraudulent buyers directly. Consider implementing preventive measures such as video recording packaging, serial number documentation, and signature confirmation for valuable items. eBay's appeals process should be exhausted with comprehensive fraud documentation before pursuing external legal remedies.

eBay's User Agreement contains a mandatory arbitration clause that significantly impacts California sellers' ability to pursue legal claims. Under the Federal Arbitration Act (9 U.S.C. Section 2) and California Code of Civil Procedure Section 1281, arbitration agreements are generally enforceable. However, California courts apply heightened scrutiny to arbitration clauses in adhesion contracts.

The landmark case Armendariz v. Foundation Health Psychcare Services established that arbitration agreements may be unconscionable if they lack mutuality, impose excessive costs, or limit statutory remedies. eBay's arbitration clause typically requires individual arbitration and waives class action rights. California courts have occasionally found such waivers unconscionable under Discover Bank v. Superior Court, though the U.S. Supreme Court's AT&T Mobility v. Concepcion decision limits this analysis. Small claims court exceptions often exist in arbitration clauses, preserving access to California small claims court for disputes up to $10,000. Before accepting arbitration, evaluate whether the costs and procedures are reasonable, whether you can pursue claims efficiently, and whether any statutory rights are being waived improperly.

California imposes extensive product safety requirements on eBay sellers that exceed federal standards. California Health and Safety Code Section 25249.6 (Proposition 65) requires warnings for products containing chemicals known to cause cancer or reproductive harm - failure to provide required warnings can result in penalties up to $2,500 per day per violation. California Business and Professions Code Section 17500 prohibits selling products with false safety claims.

The California Consumer Product Safety Act requires compliance with all applicable safety standards. Sellers of children's products must comply with additional California requirements including California Health and Safety Code Section 108875 (lead content limits). Electrical products must meet California Energy Commission requirements. Recall compliance is mandatory - selling recalled products violates California Business and Professions Code Section 17200 and can result in eBay listing removal and account suspension. Maintain documentation of product sourcing, safety testing, and compliance certificates. Consider product liability insurance as California's strict liability doctrine (Greenman v. Yuba Power Products) makes sellers liable for defective products regardless of fault.

Recovering eBay selling fees after fraudulent transactions requires understanding eBay's fee policies and California contract law. eBay's Fee Policy states that final value fees may be credited when transactions are cancelled due to buyer non-payment or when eBay rules in the seller's favor. To request fee credits, report the fraudulent transaction through the Resolution Center and select the appropriate reason (buyer didn't pay, returned wrong item, etc.).

Under California Civil Code Section 1689, contracts may be rescinded for fraud, supporting your right to recover fees paid on fraudulent transactions. If eBay refuses fee credits on proven fraudulent transactions, California Business and Professions Code Section 17200 may provide recourse for unfair practices. Document all fraud evidence including police reports, return discrepancies, and buyer communications. For systematic fee recovery issues, the California Attorney General's Consumer Protection Division accepts complaints against businesses. California small claims court allows recovery up to $10,000, potentially including wrongfully retained fees. Consider whether fees charged on fraudulent transactions violate the implied covenant of good faith and fair dealing in eBay's User Agreement, which California courts recognize.

California law provides defamation protections that may apply to false or malicious eBay feedback, though practical enforcement presents challenges. California Civil Code Section 45 defines libel as false and unprivileged publication that exposes someone to hatred, contempt, or injury to reputation. Defamatory feedback must contain false statements of fact (not mere opinion), be published to third parties (eBay's public feedback system qualifies), and cause actual harm to your business.

Under California Civil Code Section 45a, libel per se (statements obviously harmful) doesn't require proof of special damages. However, the federal Communications Decency Act (47 U.S.C. Section 230) generally immunizes eBay from liability for user-generated content. Your recourse is primarily against the buyer who posted defamatory feedback. Document the false statements, your actual transaction record, and any business losses. California Code of Civil Procedure Section 340(c) provides a one-year statute of limitations for defamation claims. eBay may remove feedback that violates its policies (profanity, personal information, references to investigations). For persistent harassment, California Code of Civil Procedure Section 527.6 provides civil harassment restraining orders. Consider whether litigation costs justify pursuing defamation claims for feedback disputes.