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Auctionbytes-NewsFlash, Number 431 - November 08, 2002 - ISSN 1539-5065     

PowerSeller Files for Arbitration against eBay
By Ina Steiner
AuctionBytes.com
November 08, 2002
Reading AuctionBytes: PowerSeller Files for Arbitration against eBay

An eBay "Powerseller" has filed a demand for arbitration against eBay after being suspended from the site in August. D. Mark Katz, owner of Americana Image Gallery, sold vintage photography under the user name d.mark. Katz claims eBay suspended his account unfairly and made the suspension permanent because he sent an email to his customers criticizing the auction site.

Katz filed for arbitration because of a mandatory clause in eBay's user agreement that prevents users from filing a lawsuit. Recently a judge in California called a similar clause in PayPal's user agreement "unfair to customers" and ruled that customers filing a class-action lawsuit will be able to take their grievances to a jury. Because of that ruling, Katz filed a request for locale change with the American Arbitration Association, objecting to eBay's requirement that arbitration take place in San Jose, California, where the company is located.

Katz said eBay told him they were permanently suspending him because he was abusive to eBay employees and because of chronic violation of eBay site policies, including listing policies, feedback abuse, shill bidding and more. Katz denies that he was abusive to any eBay employees and said, "There were no listing violations, there was no feedback abuse."

eBay spokesperson Kevin Pursglove said he can't talk about the specifics of Katz' case because it would violate the company's privacy policy. However, he said eBay customer service reviewed the case this week at Pursglove's request, and they "are comfortable with the decisions they have made and the suspension of the account." The idea that Katz was suspended because he openly criticized eBay is "frivolous," Pursglove said.

Katz, a 53-year-old Vietnam veteran, is a Civil War expert and the author of two reference books, "Custer in Photographs" and "Witness to an Era." Five years ago, Katz suffered a series of strokes and started selling on eBay. "Thank God for eBay. They were there when I needed them," Katz said. He sold vintage photographs on eBay for 5 years, becoming a Powerseller and making about $23,000 a month in sales.

Katz believes the case is one of freedom of speech. He hopes eBay will reconsider their decision and will reinstate him and allow him to continue the business he built up on eBay over the past 5 years.

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