EBay Beats Antitrust Action Over Seller Rating Policy

Law360, New York (November 30, 2011, 9:47 PM EST) -- A California federal judge threw out a class action over eBay Inc.'s customer feedback policy Wednesday, finding the plaintiffs' allegations of antitrust violations, negligence and trade libel were not substantial enough to sustain the suit.

The suit was launched in December 2010, alleging smaller auction sellers were losing their business as a result of eBay's policy that all sellers must maintain a high customer feedback rating, which the plaintiffs argued could be damaged by "feedback extortion" and malicious competitors artificially lowering ratings.

But U.S. District Judge...
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