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eBay buyer sued for $10K by disgruntled seller

Clark makes about 50 small purchases per year on eBay. He especially loves the cheap cell phone/electronics accessories that he can pick up for around $5. In fact, he bought his daughter a case for her iPod Nano for $1.25 including shipping! The item came from Hong Kong, so you know the seller took a loss on the shipping charges alone.

Many people, however, use eBay for more expensive things. There's been a recent breakdown in trust between sellers and buyers. Sellers used to be able to manipulate approval ratings, but that system was done away with as eBay has tried to instill buyer confidence. Merchants are now angry that their customers can post negative things online and they're stuck with it.

One seller recently went so far as to sue a buyer who put up a neutral rating -- not even a negative one! A Seattle man named Steve Shellhorn was unhappy with the packaging that accompanied some coins he bought on eBay. So he posted his comments and was sued by a seller in North Carolina for $10K. The case was thrown out of court, but Shellhorn incurred $500 when he hired a lawyer.

The takeaway here is that a lot of people make "anonymous" posts on websites that trash other people or companies. But your identity can be revealed with a court order. So this is not to say that you can't use free speech; just realize you also have the responsibility to do it respectfully and factually. Not that those issues came into play in the Shellhorn case -- that was completely out of left field!


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What others are saying

  • "not even a negative one!"
    ebay considers and counts neutrals and negatives as the same thing now.
  • I saw this on the local news...
    full story can be located at king5.com under the "Get Jesse" section.
  • correction
    that's 33 cents for used and 66 cents for new on the dollar
  • I prefer to sell somewhat...
    I usually sell on eBay and I'm meticulous about how I ship and how I describe the item - I include plenty of photos.
    I personally am frustrated by folks who send items with inadequate packaging. I bought a camera lens months ago and I was surprised that it arrived in one piece and in working order.
    When I ship, I mumifiy the item. Yes, it may be overkill, but it leaves the customer with a good feeling that I shipped their item with care.
    By the way, in the old days, the seller left feedback first. That was the custom. But The crooks have turned feedback into blackmail and made us honest guys look bad and made it harder for us to sell.
    Here's a guide to buying on eBay: pay only 33% for used goods and 60% for new. That will compensate for the risk of doing business on eBay.

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Which of these recent rip-off alerts shocked you the most?
Campuses taking kickbacks from health insurers.
AT&T settling a lawsuit over 3rd party billing charges.
Online loans coming with interest rates as high as 2,000%.
Scamsters pretending to collect funds for flood-relief charities.
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